Nov 17, 2020
If you own a home or have ever purchased one, then you probably are familiar with closings costs.
When you buy a home, you are on the hook for closing costs that including things like lender fees, an appraisal, a home inspection, and transfer taxes which total between 3% to 4% of the sales price of your home.
If you are now considering selling your home, then you'll also have to pay an additional set of seller closing costs that can be anywhere between 5-10% of your home's sales price. These include real estate commissions, pro-rated property taxes and any contributions towards the buyer's closing costs that were negotiated in your deal.
Before you sell, read all about the closings costs you should expect when you sell your home in Texas.
Closing is the final stage of the home buying process and the consummation of the sale for both the buyer and the seller. At this point, all documents are signed and mortgage funds are released, finalizing the transfer of property ownership from the seller to the buyer.
At closing, both the seller and the buyer will be responsible for an array of closing costs and fees.
As the seller, your closing cost fees will mostly relate to real estate commissions and the transferring of the deed to your home while the buyer will mainly cover closing costs associated with their mortgage.
Though all the taxes, fees, lender charges and insurance add up, generally neither party pays 100% of all the closing costs. Instead, the seller will typically pay between 5% to 10% of the sales price and the buyer will pay between 3% to 4% in closing costs.
It's good to note however, that even though you may avoid the bulk of closing costs, you as the seller will still have to cover realtor commission costs which can add on as much as 6%.
So how much will you actually pay in closing costs for your home in Texas?
To figure out an estimate of the amount you'll pay, simply multiply the price of your home by the typical closing cost percentage of 5% to 10%.
For example, the current median listing price in Texas is $223,000. If you multiply this by the typical closing cost percentage (5-10%), you'll find that your closing costs could range anywhere between $11,150 and $22,300 when you sell.
While closing costs are normally divided among the buyer and seller, nothing is set in stone. As we mentioned above, all closing costs are negotiable, so it's important to be familiar with all of them in case your buyer requests you pay a portion of their closing costs. Below, we have listed some of the most common closing costs in Texas and how much you can expect them to be.
Common Seller Closing Costs in Texas:
Common Texas Buyer Closing Costs:
While it may seem counterintuitive to even consider paying for the buyer's closing costs, helping out the buyer can actually work to your benefit.
By paying for the buyer's closing costs or even a portion of those costs, you'll help ensure the sale of your home goes through smoothly. Buyers are saddled with the bulk of expenses in a real estate transaction — from the down payment and mortgage payments to property taxes and homeowner's insurance, buyers can feel a financial strain.
Paying for some buyer closing costs can relieve the financial pressure on the buyer and provide them with enough financial cushion to sign on the dotted line.
The best way to reduce your closing costs by a significant amount is to reduce the real estate agent commission.
Remember as the seller, you'll be responsible for paying all commission costs — both your agent's commission and the buyer's agent's commission. Typically, the standard commission rate is 5-6% of the home's sale price in Texas.
For a home selling at the state's median sales price of around $223,000 with a 6% average Texas real estate commission, you'd be paying $13,380 in commission.
If those fees seem high, you'll want to explore all your options on how you can reduce the costs of selling your home and keep as much equity as possible at the time of closing.
At SimpleShowing, you can sell your home with an experienced, full-service agent who works for a fraction of the typical commission fee – 1% listing fee. If you were to sell the median priced home at $223,000, you'd profit about $4,460 more with a SimpleShowing agent.
A SimpleShowing agent can show you how to save thousands in realtor fees if you're selling in Dallas and surrounding areas in Texas. Click here to get in touch with a SimpleShowing agent in your area.
It's important for homeowners to realize that selling your home will probably cost more than you initially thought — you'll be responsible for commission fees, potential repair costs, staging, and curb appeal expenses and more.
To help you navigate all your selling costs, it's important to consult with an experienced real estate agent who can provide guidance on the best approach to sell your home so you get the best deal possible.
And if saving money is a top priority, SimpleShowing can help you put more money back in your pocket when selling your home in Texas for only a 1% listing fee.
Connect with a full-service, top-rated agent in your area today who can help you save thousands on commission with our 1% listing commission.