Understanding Closing Costs

When homeowners think about selling their house, most focus on the sale price. But the truth is, the number on the contract isn’t the exact amount you’ll walk away with. Selling a home comes with its own set of closing costs, and understanding them upfront can help you avoid surprises and better plan your next move.

At The Freund Group at FIV Realty, we make sure sellers across League City, Friendswood, Clear Lake, Houston, and Galveston know exactly what to expect at the closing table. Here’s a clear breakdown of the most common seller closing costs and what they mean for your bottom line.

📑 What Are Closing Costs?

Closing costs are the fees and expenses that come with finalizing a real estate transaction. Both buyers and sellers have costs to cover, but the seller’s side is usually deducted from the sale proceeds.

On average, seller closing costs range from 6% to 10% of the home’s sale price. The largest portion is typically the agent commission, but there are several other expenses to plan for.

🧾 Typical Closing Costs for Home Sellers

Here are the most common costs sellers face in Texas:

1. Real Estate Agent Commission

• Usually 5% to 6% of the sale price, split between the listing agent and the buyer’s agent.
  
  
• This covers marketing, negotiations, contracts, and overall representation.
  
  

2. Title Fees

• Sellers often pay for the owner’s title insurance policy, which protects the buyer from potential ownership disputes.
  
  
• Title company fees may also include escrow charges and administrative costs.
  
  

3. Property Taxes

• You’ll need to pay prorated property taxes up to the closing date.
  
  
• If you’ve already paid taxes for the year, you may receive a credit back at closing.
  
  

4. HOA Fees (if applicable)

• Many communities in League City and Friendswood have HOAs. Sellers may owe prorated dues or a transfer fee.
  
  

5. Repairs or Concessions

• If inspection negotiations lead to repair requests, sellers often provide credits or cover certain repairs.
  
  
• This isn’t always required but is common in today’s market.
  
  

6. Attorney Fees (if used)

• Not always necessary in Texas, but some sellers choose to hire an attorney to review closing documents.
  
  

7. Miscellaneous Fees

• Courier fees, document preparation, and recording fees may apply, depending on the transaction.
  
  

📊 Example of Seller Closing Costs in Houston Area

Let’s say you sell your home in League City for $400,000. Here’s a rough estimate of seller closing costs:

• Agent Commission (6%): $24,000
  
  
• Title Insurance & Fees: $2,500
  
  
• Prorated Taxes: $3,200
  
  
• HOA Fees/Transfer: $350
  
  
• Miscellaneous Fees: $450
  
  

Estimated Total Closing Costs: $30,500

👉 Your net proceeds would be approximately $369,500 (before paying off any mortgage balance).

⚖️ Who Pays for What in Texas?

Texas doesn’t have a strict rule on which party pays specific closing costs. Many fees are negotiable, and traditions vary by county. However, sellers in the Houston and Galveston areas often pay for the owner’s title policy, while buyers typically pay for lender’s title insurance, loan origination, and appraisal.

✅ How to Minimize Closing Costs

While some fees are standard, there are ways to reduce your out-of-pocket expenses:

• Compare title companies for the most competitive fees.
  
  
• Negotiate repair requests carefully — credits can sometimes save you money.
  
  
• Work with a Realtor who explains costs upfront so there are no surprises.
  
  

Understanding closing costs is just as important as setting the right price. By planning ahead, you’ll know exactly what to expect and can focus on maximizing your net proceeds.

👉 Want to know how much you’d net from selling your home in League City, Friendswood, Clear Lake, or Houston?
Contact The Freund Group at FIV Realty today for a free home valuation and personalized seller net sheet.