Seller closing costs in Highland Village, TX: what you'll pay and net

by Jay Marks

Selling a home in Highland Village means a meaningful chunk of your sale price stays at the closing table rather than going into your pocket.

Your list price and your net proceeds can differ by tens of thousands of dollars. Closing costs cover everything from state-regulated insurance premiums to negotiable commissions, and the ones you can control change how you read an offer.

Key takeaway

In Highland Village, your biggest closing costs as a seller will be commission and the property tax proration, not the state-set title and escrow fees most guides spend the most time on. With local home values down 8.6% over the past year, buyers are asking for credits, so negotiate commission before you list and pick your closing date with taxes in mind. If you just want a number, the worked example below shows a net estimate at the city's median price.

Who this guide is for

You're preparing to sell a home in Highland Village and want to estimate what you'll walk away with after closing costs, and figure out which of those costs you can negotiate or time.

What are seller closing costs in Highland Village?

For a Highland Village seller near the median, the closing costs that move the bottom line are the ones you negotiate or time, not the state-set title and escrow fees. The bigger expenses are commission, buyer credits in a market where homes recently sold below list more than three-quarters of the time, and a property-tax proration that grows with every month you close later in the year.

You'll need to make a few decisions before and during the sale that dictate your final bill. Consider these questions as you prepare to list:

Will you close in the first half of the year or the second? A later closing means a larger property tax credit to the buyer.
Is your buyer using an FHA, VA, or conventional loan? Each caps how much you can contribute toward their costs.
Do you still have a mortgage? Your payoff and daily interest come out of your proceeds.
Is the home in a homeowners association, and do you have your existing survey? These determine whether you face resale-certificate fees and a new survey bill.

Closing costs vs. net proceeds

Closing costs are the fees and credits on the settlement statement. Net proceeds are what's left after those costs plus your mortgage payoff.

Sellers usually care about the second number, which is why the rest of this guide focuses on it. The title company prepares a seller net sheet before closing to show this breakdown. Review the selling process and pricing guide for more on how to prepare for this phase.

Bear in mind that an early net sheet is only an estimate. Your final settlement statement can shift with buyer credits negotiated after the option period.

No transfer tax in Texas

Texas charges no state or local real estate transfer tax, so Highland Village sellers skip a line item that costs sellers thousands in many states. This is why national average seller closing cost figures rarely map cleanly here.

The Texas Constitution prohibits state and local governments from creating a transfer tax, leaving only ordinary county recording fees and title costs.

That said, no transfer tax doesn't mean a cheap exit. Texas leans on property taxes, and the seller's share of those shows up as a proration credit that can rival what sellers elsewhere pay in transfer taxes.

Fixed seller closing costs in Highland Village

The Texas Department of Insurance sets the basic premium for title insurance statewide. A 6.2% reduction to the title insurance basic premium rates took effect in March 2026.

These fixed costs are predictable, and you have little room to move them. They're also the smaller part of your total bill.

Owner's title insurance policy

The seller customarily pays for the buyer's owner's policy under the standard TREC contract. Because Texas title insurance premiums are set by the state, shopping title companies won't change the basic premium itself.

For a home near the $575,000 mark, the promulgated owner's title premium is a set figure regardless of which title company you use.

Optional endorsements, like the survey amendment, add to the premium. Who pays for them is negotiated in the contract, so read that paragraph before you sign.

Escrow and settlement fees

The title company's escrow fee is often split between buyer and seller. Smaller fees for tax certificates, document preparation, and courier charges also land here.

Unlike the premium, these vary by company. Ask your title company for an itemized seller net sheet that breaks out escrow, document, and courier fees separately. These fees aren't regulated like the premium, so one company's quote doesn't apply everywhere.

Recording and lien release fees in Denton County

If you have a mortgage, the release of lien is recorded with the Denton County Clerk. The fee is small and set by the county schedule: $25 for the first page, $4 for the required recording information page, and $4 for each additional page.

If you have multiple loans, each additional document recorded, such as a second lien or a home equity line, adds its own fee.

HOA resale certificate and transfer fees

Many Highland Village subdivisions have homeowners associations. Texas law caps what an HOA can charge a seller for a resale certificate. Under the Texas Property Code, that cap is $375 for the original certificate and $75 for an updated certificate.

Ask your HOA's management company for its resale certificate fee, any separate transfer fee, and rush charges. Rush fees and transfer fees can push the total HOA bill above the capped certificate price.

Negotiable seller closing costs

Highland Village currently has about 2.6 months of supply, and 22.6% of homes sold above list recently. That means the vast majority of sales close at or below asking price, giving buyers room to ask for concessions.

The costs in this category depend entirely on the deal you strike.

Real estate commission

Commission is the largest single seller cost and is set in your listing agreement. Since August 2024, offers of buyer-agent pay can't be posted on the MLS, so whether you cover it is now an explicit term in the offer.

A seller may still agree to cover the buyer's agent compensation as part of a negotiated deal. Confirm in your listing agreement exactly how buyer-agent compensation will be handled if a buyer requests it.

A lower listing fee doesn't cap your total. A buyer's offer may ask you to cover their agent's pay, and that line can rival your own commission.

Seller concessions and buyer credits

In the current market, offers routinely include a request for the seller to cover part of the buyer's closing costs or a home warranty. Review the buyer closing costs guide to understand what they're paying on their side.

FHA loans allow seller contributions up to 6% of the price, a ceiling that rarely matters until a buyer asks for help with their costs. If an offer includes a closing-cost credit, ask the buyer's lender to confirm it fits their loan program's contribution limit. Check the buyer financing and assistance guide for context on concession requests.

A credit doesn't reduce your title premium or commission the way a lower price can. It also has to fit the buyer's loan limits, so an over-limit credit can force a renegotiation late in the deal.

Repair credits after the option period

In Texas, the buyer pays an option fee for a short window to inspect the property and back out if they choose. Most repair negotiation happens through a TREC amendment during this window, and the result often shows up as a closing credit rather than completed work.

Repair credits are negotiated after you've accepted a price, when you have the least bargaining power. That's just how the timing works.

Survey

The TREC contract lets the parties decide who provides the survey. In Texas, an old survey plus a signed T-47 affidavit can often stand in for a new one. The Texas Real Estate Commission's standard contract outlines the survey paragraph in detail.

Find your existing survey and check whether any improvements since then would prevent using a T-47 affidavit. If you've added a fence, pool, or addition since the last survey, the title company or lender may reject the T-47 and require a new one.

Costs that depend on your closing date

Texas property taxes are paid in arrears, so a seller closing in October credits the buyer roughly nine months of taxes. The current year's bill is due by the end of January the following year.

Your sale's timing affects how much cash you hand over at the closing table for taxes, interest, and dues. Read about property taxes and household costs for broader context on local rates.

Property tax proration

At closing, the seller credits the buyer for taxes owed from January 1 to the closing date, estimated from the prior year's bill. The credit rises each month into the year.

The calculation stacks city, county, and school-district rates for Highland Village, Denton County, and the Lewisville Independent School District. Pull last year's tax statement from the Denton Central Appraisal District or Denton County Tax Assessor-Collector, and confirm which taxing units and exemptions apply to your home.

The estimate uses last year's taxes. If the appraisal district raises or lowers the value, a true-up can come later between buyer and seller, so check whether your contract or title company handles a re-proration.

Mortgage payoff and daily interest

Your lender's payoff statement includes the principal plus interest through the payoff date. Mortgage interest accrues daily, so every week between listing and closing costs money.

A typical Highland Village listing sits for a median of 41 days on market before going under contract, and the closing period comes on top of that. Request a payoff statement from your lender and note its good-through date. Payoff statements expire, so if closing slips, the title company needs an updated figure and you pay the extra days of interest.

HOA dues proration

Prepaid or unpaid HOA dues are split to the closing date like taxes. The amount is small but varies by association, which means you'll need to check your specific account balance with the management company.

Unpaid dues or open violations show up on the resale certificate and must be cleared before closing. That can be an unplanned bill.

Estimate your net proceeds: step by step

This walkthrough shows how to calculate your net proceeds at the Highland Village median price. Replace the illustrative figures with your own quotes and balances. Check the housing market trends guide for more on local pricing.

Step 1: Start from a realistic sale price

The median sale price is $574,726, shown in the At a glance section below. The sale-to-list ratio there shows where most homes land relative to asking price.

Estimate your proceeds from what homes sell for, not the initial list price. The median describes the whole city, so your own street, size, and condition can put you well above or below it. Use recent comparable sales for your home.

Step 2: Subtract fixed fees

Subtract the TDI owner's premium at that price, plus an estimated escrow share, recording fees, and HOA certificate. This subtotal is the smallest group in the example.

For illustration only: expect the owner's title policy premium near this price to be a set state rate, plus a few hundred dollars for escrow and recording. Fees outside the premium vary by title company and HOA, so treat this subtotal as a placeholder until you have actual quotes.

Step 3: Subtract commission and credits

Apply an illustrative commission rate, assume 5% total to split between listing and buyer agents for illustration only, and replace this with your own listing agreement terms. Then add an illustrative buyer credit of $3,000.

This subtotal is larger than the fixed fees from step 2. It's the most uncertain step as well. Credits are often agreed during the option period, after you've already budgeted.

Step 4: Subtract tax proration and mortgage payoff

Estimate the tax credit by dividing last year's tax bill by 365, then multiplying by the days from January 1 to closing. For illustration only, an October 29 closing means crediting the buyer for about 301 days of taxes.

Subtract an illustrative payoff balance. The final net shows the cash you walk away with.

Your real tax bill reflects your appraised value and any homestead or over-65 exemptions, not the sale price. Use your own statement, or the estimate can be off by thousands.

How to lower your seller closing costs

At a 5% total commission on the median-priced home, commission alone exceeds $28,000 before any other fees apply. You have limited control over state premiums and county fees, but you can manage the larger expenses.

Advance planning gives you more room to protect your proceeds.

Negotiate commission before you list

Commission and how buyer-agent pay will be handled are both settled in the listing agreement, before you have an offer to react to. Ask your agent to outline exactly what services are included at their proposed rate.

A cheaper listing fee can come with less marketing or pricing work. In a market where most homes sell below list, a weak list price can cost more than the fee saved.

Choose your closing date with the tax proration in mind

Each month later in the year adds to the tax credit you hand the buyer. That money isn't truly lost, since you'd owe the taxes anyway, but it changes the cash you walk away with and when. Treat your closing date as a cash-flow planning decision.

Rushing to close early in the year to shrink the credit can mean selling in a slower season. The tax timing rarely outweighs the price you get.

Order your survey, payoff, and resale certificate early

Find your existing survey for a T-47, request the HOA resale certificate before rush fees apply, and request your payoff statement early to avoid late-stage surprises. Having these documents ready speeds up the initial contract phase.

One limitation: an early payoff statement goes stale. You'll still need an updated one dated to your actual closing.

At a glance

Median sale price: $574,726 (All homes, 90 days ending 2026-09-30)
Change in median sale price vs. a year earlier: -8.6% (All homes, 90 days ending 2026-09-30)
Homes sold: 63 (All homes, 90 days ending 2026-09-30)
Median days on market: 41 (All homes, 90 days ending 2026-09-30)
Sale-to-list price: 98.6% (All homes, 90 days ending 2026-09-30)
Share of homes sold above list: 22.6% (All homes, 90 days ending 2026-09-30)
Months of supply: 2.6 (All homes, 90 days ending 2026-09-30)
Active inventory: 54 homes (All homes, 90 days ending 2026-09-30)
Median price per square foot: $218 (All homes, 90 days ending 2026-09-30)
Single-family median sale price: $574,771 across 62 sales (Single family, 90 days ending 2026-09-30)

Highland Village seller closing costs FAQs

How much are closing costs when selling a home in Texas?

Seller closing costs in Texas generally fall into two parts: fixed fees and the real estate commission. Fixed fees usually run 1% to 3% of the sale price, while the total including commission and buyer credits pushes higher. Check the worked example above for how this translates to local Highland Village prices.

Do sellers pay closing costs in Texas?

Yes. Under the standard TREC contract, the seller covers the owner's title policy, their share of the escrow fee, release-of-lien recording, and any agreed credits. Excess seller-paid amounts are applied first to buyer expenses the buyer is prohibited from paying under certain loan programs.

Who pays the most closing costs, the buyer or the seller?

In fees and prepaids such as lender charges and escrow deposits, buyers typically pay more. Sellers usually pay more in total once the real estate commission is included. Review the buyer closing costs guide to see their specific breakdown.

What is a good rule of thumb for seller closing costs?

A common rule of thumb is to expect 1% to 3% in fixed fees, plus whatever commission rate you negotiate. At Highland Village prices, where the median home is well over $500,000, that percentage often understates the raw dollars involved.

What are seller closing costs on a $300,000 or $400,000 house in Texas?

Excluding commission, fees at those price points consist mostly of the state-promulgated owner's title premium and escrow charges. The title premium scales with the price, but note that these price points sit well below the local Highland Village median.

What property tax rate is used to prorate taxes when you sell in Highland Village?

The proration uses the combined rate for the City of Highland Village, Denton County, and the Lewisville Independent School District, as described in the property tax proration section above. Confirm the exact taxing units on your own statement, because district boundaries and exemptions vary.

Do you pay Highland Village sales tax when you sell a house?

No. Texas sales tax applies to goods and certain services, not to the sale of real property, and the state has no transfer tax. The combined 8.25% sales tax rate in Highland Village only applies to everyday purchases, not your home sale.

Can a seller refuse to pay closing costs in Texas?

Yes, who pays is negotiable before signing the contract. Once the TREC contract is signed, the seller is bound to the expenses it lists and any agreed credits. Have your listing agent or a real estate attorney review the terms before accepting an offer.