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Costs Associated with Selling a Home

picture of your house listed For Sale by Baker Realty

What are the costs associated with selling a home?

Well, there are many costs associated with selling a home. But don’t stress! Knowledge is power, and we’re here to educate you on this topic. Here are most of the costs, but feel free to contact Baker Realty to provide you with an estimate more specific to your home.

Agent Commissions

This is the main expense that most sellers are concerned about.  The usual commission is 6% of the sales price, and this total pays for the listing agent’s fee and the buyer’s agent fee.  So if your home sells for $250,000, $15,000 will go to the agents – $7,500 to the listing agent and $7,500 to the buyer’s agent.

That’s a lot of money, you say! Yes, it is. But homes are also usually the largest financial investment you’ll ever make, so selling (and buying) a home isn’t cheap. Good agents, like the ones at Baker Realty, are worth more than the 3%, actually. They invest time and money into marketing and finding buyers; their experience and contract knowledge exceed the average agent!

Using an agent is worth the investment.  In fact, the National Association of REALTORS® 2019 Profile of Home Buyers and Sellers Report found that homes sold with an agent sold for a median value of $280,000 compared to $200,000 by sellers who tried selling the home on their own. By this calculation, using an agent to sell your home actually makes you money and saves you time and headaches!

Title Insurance

The next major cost associated with selling a home in Texas is the title insurance. Although this is a negotiating point on a contract, the seller usually pays for it.

Title insurance rates vary depending on the cost of the home. For a $250,000 home, the title insurance is approximately $1,623. This number increases/decreases by $26 for every 5K increment in sales price. Increasing the sales price on the $250,000 home by 5K to $255,000 increases the title insurance rate by $26, which comes out to $1,649. To quickly calculate the approximate cost of title insurance associated with your sales price, click here.


After going under contract, most buyers hire professional inspectors to evaluate the condition of the home. Results usually lead the buyer to either request the seller to make specific repairs or pay money towards their closing costs in lieu of repairs.

As you can imagine, the cost of repairs can vary greatly, depending on the home. We advise sellers to estimate this cost to be anywhere from $300-$1000, depending on the home’s condition.

Buyer’s Closing Costs

Sometimes, the buyer asks the seller to help pay some of their closing costs.  It’s not uncommon for a buyer on a $250,000 to ask the seller to pay $5,000 of their closing costs.  Increasing the sales price by $5,000 usually accommodates this fee for the seller. This situation varies, though, due to different factors such as time on market, concerns of home not appraising, etc. Baker Realty agents are here to guide you through potential obstacles that could occur in contributing money towards buyer’s closing costs.

Property Taxes

Many sellers don’t know this, but you pay property taxes at closing, even if you escrow! Taxes are prorated from January 1st through the closing date. Once the lender sees that your home sold, then they send you a check for the money in your escrow account.

POA Fees

If you live in a neighborhood with a Property Owners’ Association (HOA), expect to pay POA related fees. The costs vary, depending on the management company, but expect to see a transfer fee, a resale certificate fee, prorated monthly dues, and possibly, special assessments.  Who pays for the transfer fee and resale certificate are negotiable items in a contract. Transfer fees vary anywhere from $50 to approximately $400. Updated resale certificates are limited to $75 thanks to SB 1588, which went into effect Sept 1, 2021. Some property management companies require you to pay for the resale certificate upfront.

Home Warranty

Most buyers in today’s market expect a seller to pay for their 1st year’s home warranty. Buyers ask anywhere from $450 to $1200, depending on the home’s size, if there’s a pool, septic system, etc. This fee is paid at closing and is also a negotiable item in the contract.


If you currently don’t have a survey or can’t find it, a new survey might be needed. If the buyer is getting a loan, the lender will require a survey. Who pays for a new survey is a negotiated item in the contract. Surveys cost anywhere from $450 to $2500 depending on the property and acreage. Surveys on a typical suburban home cost around $500.

Mortgage Loans and Liens

Needless to say, all mortgage loans and any liens against the home are paid at closing. The title company figures out the exact prorated amount to pay at closing.

Miscellaneous Fees

list of miscellaneous items associated with the costs of selling a homeSome other costs associated with selling a home are small, miscellaneous items. Here are most of them, with their approximate associated costs:

  • Title Settlement Fee: $300-$450
  • Tax Certificate Fee: $43
  • Attorney Document Preparation: $75-$300
  • State of Texas Policy Guarantee Fee: $2
  • Escrow Fee: $425
  • Courier Fee: $35-$50
  • Tax Certificate: $43-$70
  • MUD Certificate: $21

The costs associated with selling a home are many.  If you’d like to know how much money you’d walk away with, after its all said and done, contact us! We’ll create a Seller Net Sheet, specific to selling your home and help you navigate through the financials.