CLOSING COSTS

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Whether you are selling your Texas home or buying one, signing that contract is a big milestone in your real estate journey. But before you celebrate, be sure you understand the transaction’s true price tag. Homebuyers pay more than just the agreed-upon sale price for a property, because every sale comes with closing costs. And selling a home isn’t all profit — sellers pay closing costs, too. Both parties should be aware of how these fees affect the total cost of the transaction. Here’s what to know about closing costs in Texas.

How much are closing costs in Texas?

Closing costs can vary widely depending on many factors, including what lender you’re using and how much your real estate attorney charges. A 2022 report from CoreLogic’s ClosingCorp found that the national average for mortgage closing costs on a single-family home, excluding transfer taxes, was $3,860. By contrast, Texans pay an average of $4,548, which amounts to about 1.5 percent of the average Texas home’s sale price. For many states, that figure falls below 1 percent, but for others it can go up as high as 4 or 5 percent. (These numbers do not factor in real estate commission fees.)

The good news for Texans is that the state does not levy transfer taxes on real estate sales, unlike many other states. So that’s one less cost to worry about. Owner’s title insurance, another typical closing cost, is not a legal requirement for buyers in Texas. However, if you’re financing your purchase with a mortgage, your lender will still require a lender’s closing policy, whether you choose to get an owner’s policy or not. The cost of title insurance in Texas is regulated by the state. Source: https://www.bankrate.com/real-estate/closing-costs-in-texas

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