Austin Market Guide

How much does it cost to sell a house in Austin?

Selling a home in Austin typically costs the agent commissions you negotiate, the owner's title insurance policy (customarily paid by the seller in Central Texas), prorated property taxes, HOA transfer fees, and any repairs or credits agreed after inspection. Texas has no state real estate transfer tax.

12 months ending September 2026

$0 Texas state transfer tax
Negotiable Agent commissions
Seller Owner's title policy, by custom
Prorated Property taxes at closing

The main costs, in order of size

  • Agent compensation. Commissions are negotiable, and since August 2024 the listing agreement and any buyer-agent compensation are separate, written decisions. Ask what is included: pricing, preparation, photography, video, marketing and negotiation.
  • Owner's title insurance policy. In Central Texas the seller customarily pays for the buyer's owner's policy. Texas sets title premiums by regulation, so the cost scales with the sale price rather than by company.
  • Property taxes. Texas taxes are paid in arrears, so at closing the seller credits the buyer for the share of the year the seller owned the home.
  • Mortgage payoff and release. Your lender's payoff, plus recording fees for the release of lien.
  • HOA fees. Resale certificates and transfer fees, where the home has an association.
  • Repairs and credits. Most Texas contracts include an option period for inspections, and the buyer may ask for repairs or a credit.

Costs Texas sellers do not pay

Texas has no state real estate transfer tax and no state income tax, so there is no state tax on the sale itself. Federal capital gains rules still apply; a married couple can generally exclude up to $500,000 of gain on a primary residence they have owned and lived in for two of the last five years. Ask your tax advisor about your situation.

Where preparation pays back

At the luxury level, the larger cost is usually time on market and price reductions, not fees. In the 12 months ending September 2026, Austin homes above $1 million that were priced right from day one sold in a median 14 days. Read whether to price high and the best month to list.

Source: MJ McFarland's analysis of Unlock MLS (ACTRIS) closed sales of single-family homes, condos and townhomes, October 2025 through September 2026. Leases excluded. Figures are medians unless noted.

Frequently Asked Questions

Who pays for title insurance in Austin, Texas?

By custom in Central Texas, the seller pays for the owner's title insurance policy that protects the buyer, and the buyer pays for the lender's policy if they finance. It is negotiable in the contract. Texas sets title insurance premiums by regulation.

Does Texas have a transfer tax when you sell a house?

No. Texas has no state real estate transfer tax, and no state income tax. Sellers still pay closing costs such as the owner's title policy, prorated property taxes, and any HOA transfer fees.

Are real estate commissions negotiable in Texas?

Yes. Commissions have always been negotiable, and since August 2024 the listing agreement and any compensation offered to a buyer's agent are separate written decisions. Compare what each agent includes, not only the rate.

How are property taxes handled when selling a house in Texas?

Texas property taxes are paid in arrears for the calendar year, so at closing the seller credits the buyer for the portion of the year the seller owned the home, and the buyer pays the full bill when it comes due.

Do I pay capital gains tax when I sell my home in Austin?

There is no Texas state tax on the gain. For federal tax, a married couple can generally exclude up to $500,000 of gain ($250,000 for a single filer) on a primary residence owned and lived in for two of the last five years. Talk to a tax advisor about your case.

Work With MJ

(512) 717-1567 [email protected]

MJ McFarland, Principal | Broker Associate
Christie's International Real Estate · 1105 N Lamar Ste 100, Austin, TX 78703
TX License 07001832 (TX)