Despite the COVID-19 pandemic, home sales in Texas broke all kinds of records in 2020 with a 9.5% increase from 2019 sales. Experts agree that there are no signs of stopping the Texas real estate train.

If you’re a homeowner in the Lone Star State, chances are that you have heard about the busy real estate market. You might even be considering jumping aboard that train and cashing in your hard-earned home equity with a refinance.

Or perhaps you might be looking to downsize – or upgrade – your living situation and are leaning towards possibly selling your home. 

The strong sales activity and dwindling housing inventory of Texas make it a seller’s market. That means if you’ve ever been thinking about selling or refinancing your home, this would be an excellent time to do it.

But what would it cost you? How much does it cost to sell your home in Texas? How much are closing costs in Texas?

Those are great questions. Keep reading for an in-depth look into the costs involved when selling your home in Texas.

What Are Closing Costs?

Closing costs are any fees due and payable above and beyond the sale price of the home. These include, but are not limited to, escrow, title, notary, and legal fees, as well as taxes and any assessment or surveying fees.

How Much Are Closing Costs?

The national average for closing costs is 5% – 10% of the sales price. A quick, easy estimate of closing costs can be done by multiplying the sales price of your home by .05 or .10.

Example:             Home sales price: $150,000 x .05 (5%) = $7,500

                            Home sales price: $150,000 x .10 (10%) = $15,000

In this example, closing costs are estimated to come in between $7,500 to $15,000.

Closing costs can seem complicated, but with this as your guide, you should be able to make sense of them just fine. 

If you want to see what your home might sell for, click here and answer a few quick questions and we’ll send you a free valuation estimate!

Are Closing Costs the Same for Every State?

Each state has its own unique combination of closing costs. It’s always a good idea to understand what that combination is and what each of the costs includes.

What Are Closing Costs in Texas?

That’s not a simple answer. Let’s talk about closing costs in the great state of Texas. 

Brokerage Fees

Enlisting the services of a realtor in the sale of a home will add a closing cost of 5% – 6% of the sales price of the home. This is a cost that’s shared by both the buyer and seller and covers each party’s agreement unless otherwise specified in the purchase agreement.

Brokerage fees vary but the average rate for realtors in Texas is 2.5% – 3%. Be sure to pay special attention to this amount before signing any listing agreement with a realtor.

Escrow Fees

The escrow company handling the sale will charge each party a fee for its services. This fee typically comes in at $350 – $600 and is paid by each party as billed by the escrow company.

Escrow fees should include all services performed by the escrow company that are not otherwise billed separately. If you have a question about any of the charges billed by the escrow company, be sure to ask your realtor about them. 

Title Search

Speaking of fees charged by the title or escrow company, one for obtaining the most recent title report is another one of them. This fee is usually around $100 – $200 and is split between the two parties.

A title search confirms the home’s current ownership and ownership history and that the property is free from any liens or judgments.  

Title Insurance

Title insurance is a mandatory fee that protects buyers from liability for any liens or judgments that may not have shown up during the title search. This ensures that the buyer won’t be saddled with any fees that they weren’t aware of at the time of the purchase.

In Texas, title insurance will cost anywhere from .9% to .6% of the sales price. The higher the price, the lower the percentage.

The Texas Department of Insurance provides a complete table with the up-to-date rate and amounts due for title insurance (as of 2019).

In Texas, the buyer pays for the title insurance endorsements (expanded coverage to fit the specific needs of the property) and the seller pays for the premium.

Municipal Lien Search

Another protection for the buyer, a municipal lien search that looks for any otherwise unrecorded property issues that won’t or didn’t show up in the title search. Examples of things that would show up in this search include, but are not limited to:

• City and County code violations
• State code violations
• Utility service balances (water/sewer/solid waste)
• Open or expired permits
• Unrecorded liens
• Special assessments

This is a cost that’s typically split between the buyer and seller and comes in at around $100 – $200.

Pro-rated Property Taxes

The amount paid for property taxes in a home sale will vary depending on the date of the sale. The current owner will be responsible for property taxes payable for the days up to and including the date of sale and the buyer will have to pay the remainder.

Example:     Property tax amount: $1000.00

                    Date of sale: 8/1/2021

                    Number of days: 213

                    1000/365: $2.74 per day

                   $2.74 x 213 days: $583.62 amount due from seller

                   $1000 – $583.62: $416.38 amount due from buyer

HOA Estoppel

If the property is part of a homeowner’s association (HOA), an HOA estoppel letter is required. The cost for one of these is typically around $200 – $500.

An HOA estoppel letter certifies:

• The monthly fee payable for that fiscal year
• Current balance for the property
• Any special assessment fees that the buyer will have to pay
• Past dues, fines, or other fees

If there are unpaid dues or fees of any kind, or to enforce violations, the HOA can put a lien on any home included in its association. An HOA Estoppel ensures that the buyer isn’t walking into a hornet’s nest of issues with the HOA.

This cost is typically paid by the seller unless otherwise indicated in the purchase agreement.

HOA Bylaws and Rules

For any property subject to an association, the seller is required to furnish current bylaws and rules, and regulations at the seller’s cost. These have to be ordered from the HOA and will usually come in at a cost of around $200 – $250.

HOA Resale Certificate

This is an official rundown of all fees owed to the HOA for the property. The HOA may or may not include this as part of the package when the Bylaws and Rules are requested.

This is typically paid for by the seller and will cost about $200 – $250, the same as the Bylaws and Rules. If offered by the HOA as a package, the total comes to $400 – $500.

Outstanding Amounts Owed

If there are any amounts due on the property, from outstanding utility bills to unpaid HOA dues, these will be paid by the seller at closing.

Recording Fees

The final deed and associated documents must be officially recorded with the county the property falls under. Recording fees will vary depending on the specific county’s rate but range from $120 – $160.

The buyer pays for the recording fees for the deed and the mortgage, and the seller pays for the recording documents to remove encumbrances from the title, releasing them from future liability.

Loan Origination Charges

This amount is determined by the buyer’s lender and the terms agreed to between those two parties, so it can vary greatly. As you probably suspected, this is a fee paid solely by the buyer.

Home Appraisal Fee

Lenders require that an appraisal of the property be performed prior to their final approval of the loan amount. This is to be sure that it’s lending the buyer money for a property that’s at least worth the loan amount.

A qualified Texas home appraiser will be familiar with this type of request and likely has a set fee structure which can vary but will typically come in around $500-$750. This fee is typically paid by the buyer unless otherwise agreed to in the purchase agreement.

It’s important to note that if the appraisal finds that the property value is less than the sale price, this could potentially kill the deal. Knowing what your home is worth is essential to a smooth transaction. 

Credit Report

This is a necessary cost for a buyer using any Texas mortgage lender but the payment is usually grouped in with the final billing. Since only the buyer is subject to a credit check in a home sale, they are responsible for the cost of obtaining one.

A credit report will usually cost about $50 – $75.

Homeowner’s Insurance

The buyer will typically be required to put a year’s worth of insurance payments in escrow. This amount varies depending on the coverage but is typically between $400 – $1000.

As a buyer, it’s important to include homeowner’s insurance in your budget. Call around and see what kind of rates are offered in your specific area so that you have a realistic idea of what you’re looking at paying for this. 

Notary Fees

Notary services are required for several of the documents involved in a home sale. Buyer and seller will usually pay for the costs they incur directly.

Notary fees will cost around $100 in total but will vary depending on the type and amount of documents involved in the transaction.

Home Warranty

This is a safeguard for the buyer and covers items that may not be covered by the homeowner’s insurance policy (like the water heater, refrigerator, etc.) for a year. This ensures that the buyer gets off to a good start in their new home and doesn’t immediately have to fork out money to replace something.

This cost is typically paid by the buyer unless otherwise agreed to in the purchase contract. The cost usually comes in at around $500 – $700 depending on the size of the property and its contents.

Who Pays Closing Costs In Texas?

Here’s a recap of the fees and who is responsible for them:

Broker commissions: 5% – 6% of the home sale price, buyer and seller split. 

Escrow: $350 – $600, buyer and seller pay direct. 

Title Search: $100 – $200, buyer and seller split. 

Title Insurance: .9% – .6% of the home sale price, buyer pays endorsements, seller pays premium.

Municipal Lien Search: $100 – $200, buyer and seller split. 

Property Taxes: Varies, both parties pay pro-rated amounts. 

HOA Estoppel: $200 – $500, seller pays.

HOA Documents: $200 – $250, seller pays. 

HOA Transfer Certificate: $200 – $250, seller pays. 

Outstanding Amounts: Varies, seller pays.

Recording Fees: $120 – $160, buyer pays to record deed and mortgage, seller pays for recording to remove encumbrances. 

Loan Origination Fees: Varies, buyer pays.

Home Appraisal: $500 – $700, buyer pays.

Credit Check: $50 – $75, buyer pays.

Homeowner’s Insurance: $400 – $1000, buyer pays. 

Home Warranty: $500 – $700, buyer pays.

Notary Services: $100, buyer and seller split. 

Purchase Agreement Over Everything

Although we’ve assigned most of these costs, it’s important to remember that the Purchase Agreement rules all. Whatever is agreed to between the parties in that contract is what will become record.

Where Do I Start?

So how much are closing costs in Texas? They’re cheaper than missing out on a red hot seller’s market! 

Texas real estate is in high demand with low inventory. If you’re looking to sell or refinance your home, this is the kind of market that is most likely to provide the best return on your investment. 

If you’re not sure whether you’re ready to pull the trigger on selling or refinancing, getting an estimate of your home’s current value may help you decide. It’s fast, free, and easy!

Submit your address, answer a few quick questions and if you’re considering refinancing or selling. Once you submit the form, we’ll gather relevant market information and put together an estimated valuation of your home.

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According to the U.S. Census Bureau, Florida ranks number eight on the list of the fastest-growing states in the country. With a 2020 population of more than 21.5 million and a population growth of 14.5% in the last decade, the rate of Florida’s growth surpasses that of both Arizona and South Carolina.

There are a lot of compelling reasons that one might move to the Sunshine State. Whether you’re drawn by the lack of state income tax, the gorgeous sunny weather, or the white sand beaches, Florida has proven to be one of the most popular destinations for Americans on the move.

However, living in Florida isn’t all sunshine and roses. Positioned on the southeastern tip of the United States and bounded by the Gulf of Mexico and the Atlantic Ocean, Florida is also the U.S. state that is most impacted by hurricanes and tropical storms.

If you’re thinking about moving to Florida, you might be wondering where the safest places to live in Florida from hurricanes are. For that reason, we’ve put together this list to help you understand which cities pose the smallest risk.

Leesburg

Leesburg, Florida is considered one of the safest places in the state when it comes to the risk of hurricanes. It has a hurricane and tropical storm score of zero and it also has a low flood score. It is located in central Florida’s Lake County and has a population of more than 21,000 people.

The population of this town has increased in recent years because of retirees moving to Florida as well as Orlando residents seeking a quieter and less populated region. Located about 45 miles northwest of Orlando, Leesburg is a part of the Orlando-Kissimmee-Sanford Metropolitan statistical area.

Every year, this town hosts the Leesburg Bikefest in the spring. The motorcycle festival draws more than 250,000 visitors each year.

Orlando

If you’re looking for hurricane-safe Florida cities, you’ll want to check out O-Town.

The largest city on our list is Orlando, which is home to more than 255,000 people. With the second-lowest combined hurricane, flood, and tropical storm score, Orlando is the city for you if you’re looking for an urban experience with a low risk of hurricanes.

Sanford

Out of our list of the safest cities in Florida from hurricanes, Sanford is another example of a central Florida city that presents a low risk. Located in Seminole County and home to more than 56,000 residents, Sanford is a quaint town with old Victorian homes and brick-lined streets.

Community is one of the main focuses in this town. There are monthly street parties hosted here, jazz concerts held in Magnolia Square, and musicals and plays put on at the Wayne Densch Performing Arts Center.

Kissimmee

Kissimmee is one of the 10 safest cities in Florida when it comes to hurricanes and tropical storms. Located in Osceola County, this town is home to more than 65,000 residents. Not far from Orlando, this is a great place to live if you want to be close to the amenities of a city while also having access to the native wildlife and ecosystem of central Florida.

Palatka

On our list of the safest place to live in Florida from hurricanes, Palatka is the smallest town. Home to about 10,500 residents, Palatka still manages to have a thriving culture. There are two popular annual festivals held at Ravine Gardens State Park in Palatka, which are the Florida Azalea Festival and the Blue Crab Festival.

Lake City

Lake City receives a hurricane score of zero and therefore is one of the safest cities in Florida from hurricanes. It also has low scores when you look at flooding and tropical storms.

Located in north-central Florida, this city is home to more than 12,000 residents. There are several festivals held here each year, including the Alligator Warrior Festival and the Olustee Battle Festival. The former is an opportunity to see how residents lived in the area during the 19th century, while the former is a re-enactment of the Battle of Olustee.

Naples

Located in Collier County, Naples is the first coastal Florida city on our list of hurricane-safe Florida cities. With about 19,500 residents, Naples is a thriving and vibrant city that draws tourists from across Florida, the United States, and the world.

This is one of the wealthiest cities in the country and is also a popular place to retire. Both locals and residents enjoy the tropical and pleasant weather here as well as the beaches, land reserves, vineyards, art galleries, golf courses, and shopping opportunities.

You might expect that a coastal city like Naples wouldn’t be on the list of the least hurricane-prone Florida cities. However, there are atmospheric factors that combine with the shape of Florida’s landmass that make it much less likely for hurricanes to land here. Hurricanes are much more likely to make landfall to the south of this area and travel east across the state or to curve towards the north and strike on the northern portion of the Gulf Coast.

Ocala

Ocala receives a hurricane score of zero and has low flood and tropical storm scores. With a little more than 53,000 people, this Marion County city is the eighth safest city in Florida from hurricanes.

If you’re thinking about moving to Florida, one of the primary draws might be that it is considered to be a more affordable state to live in. Check out our list of the most affordable places to live in Florida to learn more.

Gainesville

Gainesville is home to more than 127,000 residents and is located in Alachua County. With a hurricane score of zero, this city is considered the ninth safest place to live in Florida when it comes to hurricanes.

Like most college towns, Gainesville is a cultural center due to the presence of the University of Florida here. You can find the Harn Museum of Art, the Florida Museum of Natural History, the Hippodrome State Theater, and the Curtis M. Phillips Center for the Performing Arts here. On top of that, there are musical, dance, and art shows put on by the University of Florida College of Fine Arts.

Fernandina Beach

This Nassau County city has low scores when it comes to floods, hurricanes, and tropical storms. The northernmost city on Florida’s Atlantic coast, this city is located on Amelia Island. A part of Greater Jacksonville, Fernandina Beach is known as the “Isle of 8 Flags” because the flags of eight different nations have flown over it.

The population of this city was over 11,000 people according to the 2010 census.

Florida Hurricanes: What You Should Know

There are more tropical and subtropical cyclones that impact the state of Florida than any other state in the nation. There have only been eighteen hurricane seasons since 1851 when a hurricane or tropical storm didn’t impact Florida. There have been more than 10,000 deaths due to hurricanes during this time period in the state, however, most of them occurred before 1943 when hurricane hunter flights began.

So why is it that Florida is so frequently impacted by hurricanes?

There are a number of reasons that Florida deals with storms from hurricanes more often than other coastal states. One main reason is that hurricanes in the northern hemisphere typically begin in subtropical areas or tropical areas and then travel west-northwest, leaving Florida frequently in its path. Another primary reason is that the water temperatures on the east coast are more favorable to hurricane conditions, usually over 80 degrees, while the water temperature on the west coast rarely exceeds the low 70s

When hurricanes form in the Pacific tropical or subtropical waters, they tend to move west-northwest. This means that the landmasses that deal with the brunt of the impact are the Southeast Asian islands or china. If you’re interested in living on the coast but think you might prefer the Pacific coast of the U.S., check out the cheapest places to live in California.

What Happens During a Hurricane?

There are a number of serious hazards that come along with hurricanes striking a coastal area. These include high winds, heavy rains, a storm surge, and tornadoes.

High winds can cause a tremendous amount of damage during a hurricane. Hurricane-force winds can destroy mobile homes and buildings. It can make normal objects like roofing material, signs, and siding into flying missiles. The winds from a hurricane can maintain hurricane strength far inland from the coast.

Heavy rains can result in destructive and deadly floods during a tropical storm or hurricane. Flash flooding occurs when water levels rise rapidly, and long-term flooding can occur due to rivers and streams swelling from the rain.

Storm surges are phenomena that occur when the storm’s winds cause an abnormal rise in water level. These can span hundreds of miles of coastline and reach heights well over 20 feet.

A combination of storm surge and the astronomical tide can create what is known as storm tide. This is the water level rise that occurs during a storm.

Lastly, tornadoes can also be produced by tropical storms and hurricanes. These typically happen in thunderstorms that are embedded in rain bands quite some distance from the hurricane’s center. However, tornadoes can also form near the eyewall.

These tornadoes are typically short-lived and on the weaker side, but that doesn’t mean they don’t pose a serious threat.

What Are the Most Hurricane Prone Florida Cities?

When you look at the list of the worst places in the country for hurricanes, you’ll notice that regions of Florida dominate the list. Southeast Florida is considered the most likely place in the US to be hit by a major hurricane, while Key West, the Florida Keys, and Southwest Florida follow. Also on this list include West Florida, the central Florida Atlantic coast, and the Florida panhandle.

Florida isn’t the only US state that has to deal with hurricanes. Other places that are at high risk for hurricanes in the near future include

• The Outer Banks islands in North Carolina
• The Central Texas Gulf coast, the central Gulf coast
• The south Texas Gulf coast

According to a list of the places that have most frequently been impacted by tropical storms and hurricanes, Miami experiences storms more often than any other area in Florida. According to this data, Miami is hit or brushed by tropical storms and hurricanes every 1.96 years. That being said, there are plenty of lovely places to live in South Florida.

Cape Canaveral has a similar frequency with which it experiences these storms.

The Safest Places to Live in Florida from Hurricanes: Is One of These Locations Going to Be Your New Home?

If you’re looking for the safest places to live in Florida from hurricanes, this list can help guide your research into safe Florida communities. The rankings on our list are based on a number of different factors. These include the number of storm events in each city, storm-related property damage, storm-related deaths, and storm-related injuries between the years of 1965 and 2014.

It’s important to understand that the cities on this list are not in any way guaranteed to be safe from tropical storms. Florida is a coastal state, and its location makes it the most impacted state in the country by hurricanes and tropical storms. That being said, some cities tend to receive fewer pummelings than others.

Millions of people live happily in Florida, and the risk of hurricanes likely shouldn’t spoil your plans for tropical living entirely. However, it’s important to understand the risks of hurricanes and tropical storms so you can be prepared and plan accordingly.

Is it time for you to sell your home and make your move to a tropical state? If so, learn how much your home is worth with our free home valuation tool and get a no-obligation offer.

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