Average closing costs in Texas are a hot topic, especially as the housing market in Lone Star State has been experiencing a boom. It is not surprising that many Americans are contemplating settling in Texas or investing in real estate.
How much is the average closing cost in Texas?
Average closing costs in Texas for buyers usually range between 2-6% of the purchase price. Regarding sellers, they must prepare 6-10% of the home’s purchase price, including commissions for real estate agents.
Closing costs are what you pay for the transfer of ownership of the home you bought – seller to buyer – to complete the real estate purchase transaction. Let’s say the home you want to buy is at $350,000. To estimate the closing fee, you must prepare $7,000 and $21,000 for the closing cost.
Who is responsible for the closing costs?
Both buyers and sellers pay their closing costs responsibilities, and it doesn’t mean that they split the cost – there are costs that they can share, but there’s a distinct difference between who pays what.
Buyers are responsible for the following closing costs:
- Origination and Loan application fees
- Appraisal fee
- Credit report fee
- Survey fee
- Home inspection fee
- Discount fees
- Prepaid costs
On the other hand, sellers are responsible for the following closing costs:
- Real estate agent commissions
- Homeowner association documents
- Attorney’s fees
- Outstanding bills
- Reconveyance fees
- Seller concession
- Mortgage payoff
When it comes to shared closing costs, the buyer and the seller can split the price if they agree. Both parties can talk about sharing the Escrow fees, Title search and insurance, Lien search, Recording fees, Prorated property taxes, Notary fees, and Home warranty.
There are other costs to consider when buying a property in Texas. Drop us a line if you need help finding the latest average closing costs in Texas.