Closing costs are one of several expenditures associated with selling a house in Texas. It’s critical to comprehend these expenses and what you should expect to pay as they can soon mount up. The primary closing charges for sellers in Texas are discussed in this article along with some frequently asked questions about them. Main Closing Expenses for Texas Sellers
1. Real estate agent commission – In Texas, this is frequently the biggest closing expense for sellers. 6% of the sale price is the typical commission rate, but this might change based on the real estate market and the specific terms of your contract with your agent.
2. Title insurance – This shields the purchaser and the lender against any pending or future legal actions or claims made against the purchased property. The price of title insurance varies according to how much the house sells for, but it normally costs between $1,000 and $3,000.
3. Transfer Taxes – The state of Texas levies a transfer tax equal to 0.25 percent of the sale price. A transfer tax might also be levied by some counties and cities. 4. Attorney Fees – Although it is not necessary to retain an attorney in Texas for the closing procedure, some sellers may prefer to do so. The typical range of legal fees is $500 to $1,500.
5. Homeowner Association (HOA) Fees – In the event that the property being sold is a part of a HOA, the seller may be liable for paying any unpaid fees or dues at closing. Who in Texas Pays HOA Fees at Closing?
Depending on the conditions of the sale, different parties may be responsible for paying HOA dues at closing in Texas. Normally, any unpaid HOA dues or fees up to the closing date are the seller’s responsibility. However, as part of the negotiation process, the buyer could consent to pay these fees.
The buyer makes a deposit known as a GF Escrow, or Good Faith Escrow, to demonstrate their commitment to buying the property. Typically, this deposit is kept in an escrow account until the closing procedure is finished. The GF Escrow may be given back to the seller as payment for their time and expenditures if the sale goes through.
On Texas Disclosure, what is GF? The Good Faith Estimate, a document given to the buyer by the lender, is referred to as GF on a Texas Disclosure. The expected costs and fees for the mortgage loan, including as interest rates, closing costs, and monthly payments, are listed in this document.
A deposit given by the buyer as a sign of commitment to buying the property is known as earnest money. Normally, the seller receives this deposit directly, or it is kept in an escrow account until the transaction is closed. The earnest money is used to cover the down payment and closing charges if the sale closes. The earnest money may be forfeited to the seller as payment for their work and expenditures if the deal falls through.
In conclusion, there are a number of closing fees that sellers in Texas may incur when selling a home. It’s crucial to consult with a knowledgeable real estate agent who can explain these expenses to you and help you negotiate the conditions of the sale. Sellers can more effectively position themselves for a successful transaction by comprehending the key closing fees and associated inquiries.