What Dallas Sellers Actually Pay at Closing: Your Texas Net Proceeds Breakdown
Texas sellers typically net 91–93% of their sale price. Here’s the complete line-by-line closing cost breakdown for Dallas and Collin County sellers.
How much will I net after selling my home in Dallas, Texas?
Dallas-area sellers typically net 91 to 93 percent of their home’s sale price after agent commission, the owner’s title insurance policy, prorated property taxes, and other standard closing costs. On a $600,000 sale, that’s roughly $551,000 to $558,000 before mortgage payoff. Texas has no state real estate transfer tax, which saves DFW sellers thousands compared to sellers in most other states.
By Paul Blair | May 20, 2026
The gap between your sale price and what shows up in your bank account surprises most sellers. Not because the numbers are hidden, but because nobody walks through them in plain English before you sign the listing agreement.
In Dallas and the surrounding suburbs, that gap typically runs 7 to 9 percent of your sale price. On a $600,000 home, you’re looking at roughly $42,000 to $54,000 in transaction costs before your mortgage payoff. Understanding what makes up that number, and why Texas is actually one of the better states to sell in, puts you in a stronger position before you list.
Here’s the complete breakdown.
What Texas Sellers Actually Pay at Closing
Agent commission
This is the largest single cost. In DFW, the average total commission runs between 5.39 and 5.54 percent of the sale price. On a $600,000 home, that’s roughly $32,340 to $33,240.
Post-NAR settlement, the way buyer’s agent compensation is structured has shifted. Buyer’s agents now negotiate their fee directly with their clients rather than through the listing. In practice, sellers in the DFW market are still frequently offering buyer’s agent compensation to attract qualified buyers, particularly in the $450,000 to $700,000 range where competition from new construction is real. Your listing agent will walk you through what’s standard in your specific price band and submarket before you go on the market.
Owner’s title insurance policy
This is where Texas surprises sellers who’ve sold in other states. In Texas, it’s customary for the seller to pay for the buyer’s owner’s title insurance policy on resale transactions. In most other states, the buyer covers this cost.
The premium is regulated by the Texas Department of Insurance and is based on the sale price:
- $400,000 sale: approximately $1,695
- $500,000 sale: approximately $2,079
- $600,000 sale: approximately $2,463
- $700,000 sale: approximately $2,847
This is a fixed, promulgated rate in Texas. You can’t shop for a lower premium, but you know exactly what it will cost before you list.
Prorated property taxes
Texas property taxes are paid in arrears, which means homeowners pay the current year’s taxes the following January. At closing, you’ll credit the buyer for your share of the year’s taxes, prorated from January 1 through the closing date.
If you close on June 1, you owe the buyer roughly five months of taxes. In Dallas County, effective tax rates run approximately 2.0 to 2.3 percent depending on your municipality and whether a MUD or special taxing district applies. In Collin County, rates typically run 1.9 to 2.1 percent.
On a $600,000 home closing June 1, your prorated tax credit to the buyer will typically land between $5,500 and $7,500. This is one of the most commonly underestimated costs for Texas sellers, and it’s a real cash credit out of your proceeds at the closing table.
The DFW Net Proceeds Breakdown: A $600,000 Example
Here’s what a typical resale closing looks like for a $600,000 home in the Dallas-Fort Worth area:
| Cost Item | Estimated Amount | |---|---| | Agent commission (5.39%) | $32,340 | | Owner’s title insurance policy | $2,463 | | Prorated property taxes (closing Jun 1) | $6,000 to $7,500 | | HOA transfer / resale certificate | $300 to $600 | | Recording fees (deed) | $35 | | Home warranty (if offered) | $400 to $600 | | Subtotal before repair credits | $41,538 to $44,538 | | Seller net before mortgage payoff | $555,462 to $558,462 |
Repair credits or price reductions negotiated after the inspection period are not in this table because they vary widely. More on that below.
One Advantage Texas Sellers Have That Most Don’t Know About
Texas has no state real estate transfer tax.
That’s not true in most of the country. California charges a documentary transfer tax of roughly $1.10 per $1,000 of sale price, plus additional county and city fees in places like Los Angeles. New York’s transfer tax starts at 0.4 percent and climbs to 1.4 percent in New York City. Illinois charges 0.1 percent at the state level, with local surcharges on top of that.
On a $600,000 sale in California, transfer taxes alone can run $2,000 to $6,600 depending on the county and city. In Texas, that line item is zero.
If you’ve sold a home in another state before and you’re running your mental math, scratch the transfer tax line. Texas doesn’t have one. It’s a real and meaningful advantage that doesn’t show up on most cost comparison lists.
The Variable Costs: What You Can Influence
The costs above are largely fixed. These are the ones where your specific situation matters.
Option period repair requests
After your buyer completes their inspection, they’ll often come back with a request for repairs or a closing cost credit. In DFW, repair credits on resale transactions typically run $2,000 to $8,000 on homes in the $400,000 to $700,000 price range. Homes with deferred maintenance, older HVAC systems, or roof age concerns will see requests on the higher end.
Your agent’s job is to help you evaluate what’s reasonable and where to push back. Not all inspection items carry equal weight, and responding strategically to a repair request is one of the places where experienced representation makes a measurable difference at the net proceeds line.
HOA transfer fees
If your home is in a master-planned community or a neighborhood with an active homeowners association, which covers most of Plano, Frisco, McKinney, Prosper, Murphy, and The Colony, expect transfer and resale certificate fees at closing. These typically run $300 to $600 but can reach $800 to $1,000 in communities with more complex HOA structures. Your listing agent can pull the specific fee schedule from your HOA before you list so there are no surprises.
Survey and T-47 affidavit
If you have an existing survey and can sign a T-47 Affidavit of No Changes confirming that nothing has changed on the property boundary since the survey was completed, you typically don’t need a new one. If no existing survey is available, or if the title company requires a current one, a new survey runs $400 to $700 depending on lot size and complexity. In newer construction communities across Prosper, Celina, and Melissa, surveys are typically more recent and transferable.
Your actual net depends on your home, your timing, your submarket, and the specific offer you accept. A home in Highland Park at $1.5 million has a different title policy rate, tax proration amount, and commission structure than a home in Wylie at $475,000. The more clearly you understand your specific numbers before you list, the better equipped you are to evaluate offers and make the right call on timing.
If you want a complete picture of the selling process from listing prep through closing, my full guide to selling a home in Dallas walks through each phase in detail.
Ready to see your own numbers? Get a home value estimate at greysq.com/home-value. It’s the first step to understanding what you’d actually walk away with.
Frequently Asked Questions
Do sellers pay closing costs in Texas?
Yes. Texas sellers typically pay 7 to 9 percent of the sale price in total closing costs, including agent commission, the owner’s title insurance policy, prorated property taxes, and other fees. The exact amount depends on the sale price, closing date, whether HOA fees apply, and any negotiated repair credits after the inspection period.
Who pays the owner’s title insurance in Texas?
By Texas custom, the seller pays for the buyer’s owner’s title insurance policy on resale transactions. This is the opposite of most other states, where the buyer typically covers this cost. The premium is set by the Texas Department of Insurance based on the sale price and cannot be negotiated down.
How do property taxes work when you sell a home in Texas?
Texas property taxes are paid in arrears. At closing, the seller credits the buyer for their proportional share of the current year’s taxes, prorated from January 1 through the closing date. This is a cash credit out of your proceeds and is one of the most commonly underestimated costs for DFW sellers.
Does Texas have a real estate transfer tax?
No. Texas has no state real estate transfer tax. This is a significant cost advantage over states like California, New York, and Illinois, where transfer taxes can add $2,000 to $8,000 or more to the seller’s cost column on a comparable home.
What is the average real estate commission in DFW?
The average total commission in Dallas-Fort Worth runs between 5.39 and 5.54 percent of the sale price, based on Texas REALTORS market data. Post-NAR settlement, buyer’s agent compensation is negotiated separately, but many DFW sellers continue to offer it as part of their listing strategy to attract buyers in a competitive market.
The gap between your sale price and your net proceeds is predictable when you know the variables. In Texas, the rules actually favor sellers in one key way: no transfer tax. The other costs, commission, title insurance, prorated taxes, and variable repair credits, are manageable when you plan for them before you list.
Get a home value estimate and a personalized net proceeds breakdown at greysq.com/home-value, or reach out directly at greysq.com/contact.
About Paul Blair
Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 · CA DRE #01792671.