What are Closing Costs Exactly in Central Texas?

You’ve probably come across the term “closing costs,” but are you aware of all the components they include? Explore our closing cost “FAQ” for a comprehensive understanding of what are closing costs exactly in Central Texas is all about.

What Are Closing Costs Exactly in Central Texas?

Closing costs refer to all of the fees that must be paid at the closing table. These expenses can vary depending on your location. However, in general, closing costs consist of, but are not restricted to:

Notary fees
Transfer Costs
Transfer Taxes
Appraisal Costs
Inspection Fees
Origination Fees
Recordings Fees
Title Insurance
Underwriting Fees
Bank Fees
Courier Fees
Wire Transfer Fees
Liens against the home will need to be paid to clear the title
Credit Report Fees
Administrative Fees
Attorney Fees, If Applicable
The balance of your mortgage or loans against the home
Possibly repairs or pest control if this has previously been agreed upon
COMMISSIONS!

Who’s Paying?

While the buyer typically covers several of these expenses, it’s crucial to understand that the seller typically bears 100% of the commission, which can amount to around 6% or more of the final sale price. Apart from your potential mortgage balance, this is significantly the largest expense associated with closing costs. Negotiating other expenses during the sales process is gaining popularity. In an attempt to attract more buyers, sellers are increasingly taking on the responsibility of covering closing costs.

As the seller, you’ll also be responsible for your portion of the property tax for the year up to the closing date. Additionally, any homeowner association (HOA) fees or other community expenses should be prorated and settled during this period.

What Are Seller Subsidies?

This is a figure agreed upon through negotiation between the buyer and seller. It represents the percentage that the seller commits to covering for the closing costs. For instance, you might propose contributing $3,000 towards closing expenses to alleviate some of the financial burden for your buyer. Generally, providing such subsidies is often a modest investment to attract buyers to the negotiation table!

Can You Avoid These Costs?

Absolutely! Collaborating with a direct buyer who handles all closing costs is the way to go! Unlike agents, direct buyers don’t charge commissions. Often, they’ll even cover all expenses, saving you both money and hassle during the closing process.

Are Repairs Included?

This is another aspect subject to negotiation between the buyer and the seller. When a home requires evident repairs, sellers typically address them before listing the property. However, if an inspection reveals further repairs, a buyer might condition their offer on these repairs being completed. Both parties can collaborate to resolve these issues before the closing.

If you sell your property to us at LJE Property Solutions, you don’t even have to think about repairs!

If you would like to learn more about the selling process or if you have any questions about selling your Central Texas home, send us an email using this form, or give our office a call now! 512-230-3469

Frequently Asked Question
Maybe you have a few questions. That’s okay; most people do. So, are some questions people ask us… along with our answers. If you still have a question, don’t hesitate to contact us (or give us a call) and we’ll be happy to answer it for you.

Q: Do you pay fair prices for properties?
A: Yes, we pay fair market value for the condition of the property. Don’t forget, you wont be paying any real estate fees or have to do any repairs. The large expense for both of those items falls on us. No time or effort or expense is required on your part of fix up the property or pay agent fees. We have to make sound investments to be able to put out a large amount and still be able to make a profit in the end. If that’s what you’re looking for and you see the value in getting your house sold fast… let’s see if we can come to a fair win-win price. (Besides, our no-obligation pricing commitment means that you do not have to move forward with the offer we give… but it’s good to know what we’re offering!)