Closing Costs in Texas: Who Pays What?

by DMTX Admin

When buying or selling a home in Texas, one of the most common questions is:
“Who pays for what at closing?”

Understanding closing costs—and how they’re typically divided—can help you budget more accurately, avoid surprises, and even negotiate a better deal.

Below, we break down the typical closing costs in Texas and clarify which ones are usually paid by the buyer, which are paid by the seller, and which can be negotiated.

What Are Closing Costs?

Closing costs are the fees and expenses required to finalize a real estate transaction, outside of the down payment. These can include title insurance, escrow fees, lender fees, taxes, and more.

In Texas, closing costs typically range from 2% to 6% of the home’s purchase price—depending on the deal structure, location, and lender.

Closing Costs: Who Pays What in Texas?

Below is a breakdown of typical buyer vs. seller responsibilities:

Buyer Closing Costs

Buyers generally pay for expenses related to obtaining a loan and protecting their ownership. These include:

Cost	Who Pays	Approximate Cost
Loan Origination Fee	Buyer	0.5% – 1% of loan
Appraisal Fee	Buyer	$400 – $600
Credit Report Fee	Buyer	$30 – $50
Home Inspection	Buyer	$300 – $500
Survey Fee	Buyer	$400 – $600 (varies by location)
Lender’s Title Insurance	Buyer	Varies (based on price/loan)
Escrow/Settlement Fee	Shared or Buyer	$350 – $800
Prepaid Taxes & Insurance	Buyer	Depends on escrow setup
Recording Fees (County)	Buyer	$100 – $200

Example:
A buyer purchasing a $400,000 home with a loan may pay between $8,000 to $12,000 in total closing costs, depending on lender fees and escrow setup.

Seller Closing Costs

Sellers are usually responsible for fees associated with transferring ownership, including:

Cost	Who Pays	Approximate Cost
Real Estate Commission (usually 6%)	Seller	$24,000 (on a $400K home)
Owner’s Title Insurance Policy	Seller	Varies (can be $1,000–$2,500+)
Escrow/Settlement Fee	Shared or Seller	$350 – $800
Recording/Transfer Fees	Seller	$100 – $200
HOA Transfer or Resale Certificate	Seller	$100 – $500+ (if applicable)
Property Tax Prorations	Seller	Prorated to closing date

Example:
A seller of a $400,000 home might pay $26,000 – $30,000, depending mostly on the real estate agent commission and title fees.

Can Closing Costs Be Negotiated?

Yes—many closing costs are negotiable. For example:

Buyers can request seller concessions (especially in a buyer’s market), such as having the seller cover some or all of the buyer’s closing costs.
Sellers may agree to pay title fees or contribute to escrow costs to speed up the sale.
Lenders may offer credits in exchange for slightly higher interest rates.

📍 Texas-Specific Considerations

Title insurance fees are regulated in Texas, so prices are consistent across title companies.
Customs vary by region. For example, in parts of Texas, buyers often pay for surveys, while in others, it’s more common for sellers to do so.
Homestead exemptions in Texas can reduce future property taxes for buyers—something to factor into long-term affordability.

Closing costs can add up, but with the right planning and a strong real estate team, they don’t have to be overwhelming.

Whether you’re buying or selling a home in Texas, understanding who typically pays what puts you in a stronger position to negotiate, plan, and close with confidence.

📩 Need help estimating your Texas closing costs or navigating negotiations?
Let’s connect—our team can guide you through every step with clarity and confidence.