Who Pays What at a Texas Closing: Buyer vs. Seller Costs
Closing day is when every cost in the sale finally lands on paper. In Texas, who pays for what is set mostly by your contract, so it helps to know the usual split before you negotiate.
Costs Buyers Typically Pay
Buyers usually pay the loan costs, including origination and underwriting fees, the appraisal, the lender's title policy, any survey, and recording fees for the deed and deed of trust. Buyers also fund prepaid items such as the first year of homeowners insurance, escrow reserves for taxes and insurance, and prorated interest.
Costs Sellers Typically Pay
Sellers usually pay real estate commissions, which are negotiable, the payoff of any existing mortgage and liens, the owner's title policy under the standard contract, prorated property taxes for the time they owned the home, and HOA documents such as the resale certificate. Sellers may also agree to pay part of the buyer's costs as a negotiated concession.
Costs That Are Often Split
The escrow or closing fee is commonly split between the buyer and seller, though the contract can say otherwise. Courier, wire and document preparation charges vary by title company, so ask for a full fee list.
No Transfer Tax in Texas
Texas does not charge a state deed transfer tax, which keeps closing costs lower than in many other states. You will still pay recording fees to the county.
How to Estimate Your Costs
Use our buyer and seller closing cost calculator for a quick estimate, then ask your title company for a written estimate once you are under contract. Costs vary by price, loan type, location and negotiated terms, so treat any calculator as a starting point, not a quote.