Are you trying to budget for closing day in Taylor and not sure what numbers to expect? You are not alone. Between lender fees, title insurance, taxes, and prorations, it can feel confusing to know who pays what in Texas. In this guide, you will learn the basics for buyers and sellers in Taylor and greater Williamson County, plus practical steps to estimate your cash to close or seller net. Let’s dive in.
What closing costs include
Closing costs are the fees and prorations due when ownership changes. They cover lender charges, title and escrow services, inspections and reports, government recording, and prepaids like insurance and property tax escrow. For buyers using a mortgage, a common rule of thumb is about 2% to 5% of the purchase price in closing costs, not including your down payment. For sellers, the largest cost is usually real estate commissions, plus title, prorated taxes, and any loan payoffs.
Who pays what in Texas
Texas has a few customs that influence your bottom line:
- There is no state real estate transfer tax in Texas.
- Title insurance rates are regulated statewide. The owner’s policy is customarily paid by the seller in Texas, while the buyer pays the lender’s policy if there is a mortgage. These are negotiable in your contract.
- Closings are typically handled by title companies rather than attorneys in Texas.
Local practice in Williamson County can vary on how certain settlement fees are split. Your contract and the title company’s settlement statement will spell out the final allocations.
Buyer costs in Taylor
Loan and lender fees
If you are financing, expect lender-related charges such as:
- Origination or processing fee, often 0.5% to 1.5% of the loan amount, or a flat fee
- Underwriting, credit report, and application fees, commonly a few hundred dollars total
- Optional discount points if you choose to buy down your rate
- Mortgage insurance if required by your loan program
Title and settlement
- Lender’s title insurance policy, required by your lender
- Settlement or escrow closing fee, which may be split or assigned by contract
- Owner’s title policy is customarily a seller-paid item in Texas, but this is negotiable
Appraisal, inspections, and survey
- Appraisal, typically several hundred dollars
- Home inspection and optional add-ons like WDI pest inspection
- Survey if required by title or lender, unless a recent acceptable survey is provided
Recording and government fees
- Recording fees for the deed of trust and related documents, set by the county
Prepaids and escrow setup
- First year of homeowner’s insurance, often paid at closing
- Initial escrow deposits for taxes and insurance, commonly a few months of reserves
- Property tax prorations based on the closing date
HOA and local items
- HOA transfer or setup fees if applicable
- Confirm any municipal or utility setup charges that may appear on the settlement
Timing and disclosures
Your lender must deliver the Closing Disclosure at least 3 business days before closing. Review it carefully so you know your exact cash to close.
Seller costs in Taylor
Commissions
Real estate commissions are typically the largest seller expense. The total commission is commonly around 5% to 6% of the sales price, split between the listing and buyer’s brokers. Commission terms are negotiable.
Title and settlement
- Owner’s title insurance policy is customarily paid by the seller in Texas
- Settlement or escrow fee, which may be split by contract
Prorations and payoffs
- Property taxes prorated through the closing date, which can be a significant line item in Texas
- Payoff of existing mortgage(s) and any liens or judgments
- HOA dues prorations or transfer-related fees if applicable
Repairs and other items
- Agreed repairs or credits from inspections
- Optional home warranty if offered as an incentive
- Any attorney fees if used, or specialized document fees requested by the buyer or HOA
How to estimate buyer cash to close
Use this simple framework:
- Down payment
- Plus buyer closing costs and prepaids
- Minus earnest money already deposited
- Minus any seller credits or lender credits
Here are hypothetical examples to show the math. Your numbers will differ based on your lender, title company, and contract.
Example A, 20% down on $350,000 purchase:
- Down payment: $70,000
- Closing costs at 3% estimate: $10,500
- Less earnest money: $3,500
- Estimated cash to close: $77,000
Example B, 3% down on $350,000 purchase:
- Down payment: $10,500
- Closing costs at 3.5% estimate: $12,250
- Less earnest money: $3,500
- Estimated cash to close: $19,250
If you negotiate a $7,000 seller credit, your cash to close could drop by that amount. If you pay discount points to buy down the rate, add those costs to your estimate.
How to estimate seller net proceeds
Start with the contract price, then subtract:
- Estimated commission
- Owner’s title policy and settlement fees per contract
- Prorated property taxes and HOA dues
- Mortgage payoff(s) and any liens
- Agreed repairs, credits, and any additional closing fees
A customized seller net sheet from your listing agent or the title company will show your likely bottom line, including exact prorations and payoff figures.
What is negotiable
Many items are negotiable in Texas. Common strategies include:
- Ask for seller-paid closing costs as a buyer concession within your loan program limits
- Trade a price adjustment for a credit at closing to address repairs
- Reassign certain settlement fees in the contract
General guidance on concession limits by loan type:
- FHA buyers can often receive up to 6% of the sales price in concessions
- VA rules allow certain seller concessions, commonly up to 4% for specific items, with other seller-paid costs permitted under program rules
- Conventional loans set limits based on down payment percentage, with lower allowances at small down payments and higher allowances with more equity
Always confirm exact limits with your lender because program rules can change.
Taylor and Williamson County tips
- Recording fees are set by Williamson County and vary by document. Build in a small cushion for per-page recording charges.
- Property tax proration can be a larger line item in Texas due to annual tax bills. Your title company will calculate prorations based on the closing date and the county’s appraisal and tax calendar.
- HOA resale certificates and transfer fees may apply. Identify them early so both sides understand who pays.
- Survey, floodplain, and rural due diligence matter. For acreage or property near creeks, verify floodplain, access, and survey status early. Extra endorsements or inspections can affect timeline and cost.
- Pest and WDI inspections are common in Texas. Plan for potential treatment or repair negotiations if issues are found.
Quick checklists
Buyer checklist
- Latest Loan Estimate from your lender
- Quote for homeowner’s insurance
- Plan for appraisal, inspection, and potential survey
- Estimate for lender’s title policy and settlement fee from the title company
- HOA dues and transfer fee info if applicable
- Strategy for seller concessions within loan limits
Seller checklist
- Recent mortgage payoff statements and any lien info
- Estimated commission and owner’s title policy amount
- HOA resale certificate and transfer fee details if applicable
- Known repairs or warranty decisions
- Property tax and utility prorations based on your closing date
- Request a net sheet from the title company or your listing agent
Next steps
If you are buying, ask your lender for an updated Loan Estimate early and compare several scenarios with and without points. If you are selling, request a preliminary net sheet that includes your payoff, commission, prorated taxes, and any HOA or survey items. Then refine those numbers as soon as you go under contract so there are no surprises the week of closing.
If you want a local, hands-on guide to run the numbers and negotiate the right structure for your deal in Taylor or eastern Williamson County, reach out to Paige Morris. You will get clear, local advice and a tailored estimate for your next move.
FAQs
What are typical buyer closing costs in Taylor, TX?
- Buyers who finance commonly pay around 2% to 5% of the purchase price in closing costs, not including the down payment.
Who pays for owner’s title insurance in Texas?
- It is customary for the seller to pay for the owner’s title policy in Texas, though this can be negotiated in the contract.
Does Texas have a real estate transfer tax?
- No. Texas does not have a state real estate transfer tax.
How do seller concessions work with loans?
- Loan programs cap concessions. FHA commonly allows up to 6%, VA allows certain concessions commonly up to 4% for specific items, and conventional limits vary by down payment.
When will I see my final buyer numbers before closing?
- Your lender must provide a Closing Disclosure at least 3 business days before closing, and the title company will share a settlement statement with final figures.
What seller costs add up most in Taylor, TX?
- Commissions are often the largest, followed by the owner’s title policy, prorated property taxes, mortgage payoff, and any repairs or credits agreed in the contract.
