What Are the Average Closing Costs for Sellers in Texas?

If you’re considering selling your home in Texas, you’re likely focused on setting the right price, attracting buyers, and ensuring a smooth transaction. However, closing costs is one crucial element that often gets overlooked until the last moment. These costs are part of every real estate deal, and while buyers usually shoulder a significant portion, sellers also encounter considerable fees that can accumulate quickly.

So, what can you expect regarding closing costs as a seller in Texas? Let’s break it down so you’re not surprised when it’s time to finalize the sale.

Overview of Closing Costs

So, what are the closing costs? In simple terms, they are the fees associated with completing the sale of a property. For sellers, this often includes everything from paying off your mortgage to covering various fees that facilitate a smooth transaction. While closing costs for sellers are generally lower than those for buyers, they can still add up if you’re not prepared.

Now, let’s explore some of the most common fees that contribute to closing costs in Texas.

How Much Are Closing Costs in Texas?

When people talk about closing costs in a real estate transaction, they’re referring to the various fees and expenses involved in finalizing the deal. However, it’s important to note that buyers and sellers each have their own set of costs to cover. While the total amount of closing costs for the entire transaction can add up to a significant sum, it’s typically divided between the two parties.

Seller’s Closing Costs

For sellers in Texas, closing costs can range from 6% to 10% of the sale price. Here’s a breakdown of what that might include:

• Real Estate Agent Commissions: This is often the biggest chunk, typically between 5% to 6% of the sale price. So, for a $300,000 home, this could amount to $15,000 to $18,000.
• Title Insurance Fees: Sellers are often responsible for covering the cost of the buyer’s lender’s title insurance, which can vary depending on the property’s value.
• Property Tax Proration: In Texas, property taxes are paid in arrears. Sellers are responsible for paying their share of taxes for the months they’ve owned the home during the year. This varies depending on the local tax rates.
• Repairs or Seller Concessions: If the buyer asks for repairs or you agree to offer a seller concession (a financial credit toward the buyer’s closing costs), this can vary but might run anywhere from a few hundred to several thousand dollars.
• Mortgage Payoff: If the seller still has an outstanding mortgage on the home, the balance will need to be paid off at closing. This amount is subtracted from the proceeds of the sale.

Buyer’s Closing Costs

On the other hand, buyers are also responsible for their own set of closing costs, which typically range from 2% to 5% of the purchase price. Here’s what buyers usually pay for:

• Lender Fees: The Seller or Buyer can pay this fee and it is usually checked on the contract or how it is negotiated  for the fee and the fees can vary based on the 
• Appraisal Fees: Most buyers are required to have the home appraised before securing financing, with fees generally ranging from $300 to $600.
• Home Inspection Costs: A typical home inspection in Texas can cost between $300 to $500.
• Title Insurance for Buyer: Buyers or sellers pay for their own title insurance as per the contract, which protects their investment in the property, and with Sankalp title, you can expect zero Closing or Settlement fee.
• Closing Agent Fees: These are the costs associated with the title company or closing agent managing the closing process.

Lowering Your Closing Costs in Texas with Sankalp Title

While you can’t eliminate the closing costs, collaborating with a reputable title company can help ensure that everything is managed efficiently and without any hidden fees.

This is where Sankalp Title comes into play. By choosing a trustworthy title insurance company in Texas like Sankalp Title, you can guarantee that all your title-related expenses are clear and competitive. They can assist in lowering title search fees and provide a detailed breakdown of title insurance costs, so you have a clear understanding of what you’re paying for.

Their expertise in guiding sellers through the home-selling process can help you avoid unexpected expenses that could increase your closing costs.

Conclusion

Selling a home in Texas is an exciting journey, but it also involves various financial aspects, including closing costs. Although these costs may seem daunting initially, knowing your responsibilities and potential expenses can simplify the process significantly.

By being aware of what to anticipate—whether it’s real estate commissions, title insurance fees, or repair costs—you can prepare yourself for the final stages of the sale. With the right support from a dependable title insurance company in Texas like Sankalp Title, you can reduce unforeseen costs and ensure a smooth transaction.

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