Last month, we covered what a homebuyer pays in closing costs in Texas, and now we’ll cover the other side! The buyer and seller will pay different amounts when it comes to closing costs. The good news is that some of the costs are negotiable. Here is a breakdown of what a seller pays for in closing costs and if it’s negotiable.
Title Company Fees for Homesellers in Closing Costs
These fees are specific to the title company that the seller usually pays.
Title Insurance Premium
This is the most common seller paid expense in Texas, but it is negotiable depending on the situation. On a $450,000 home, the title insurance will cost $2,677. The state sets this fee and calculates it as a percentage of the sales price on a sliding scale. The sliding scale means it will change as the price increases. For a more in-depth understanding, visit the Texas Department of Insurance website here.
Escrow Fee
The buyer and seller each pay their own escrow fee. An escrow fee is the title company’s administrative fee for working on the file through closing. This fee is set by the title company and can range from $350 to $700, depending on the title company you choose.
Document Preparation
The documents you sign at closing, like the deed, are put together by a third-party attorney. This expense is a non-negotiable seller expense. It usually ranges from $100 to $150.
Tax Certificate
This is another non-negotiable seller expense. A tax certificate will verify the correct amount of taxes to collect in order to balance the taxes at the time of closing. The pricing varies by company or county but typically ranges from $40 to $70.
Delivery/Courier Fees
Depending on what the title company charges, the buyer and seller can share these delivery fees. Not all title companies charge this fee, so ask the company or your REALTOR®. This fee covers any documents that need to be collected and mailed. Price will vary depending on the postage cost and how much a courier service may charge but typically ranges from $25 to $250.
Mobile Notary
Especially during the pandemic, this was a more common fee as a mobile notary allows for someone to come to you to sign instead of signing in person. This fee will range from $100 to $250 for each signing, meaning the buyer and seller sign separately and each pay this cost.
Contractual Expenses for Home Sellers in Closing Costs
These expenses don’t go to the lender or the title company. They are expenses that go to third parties or directly to the buyer.
Home Warranty
A one-year home warranty will cover items insurance won’t cover, like HVAC and the water heater. Typically, a buyer will ask for a credit to cover the cost of this. This expense is entirely negotiable and ranges from $500 to $700.
Home Survey
Usually, the seller furnishes the buyer with an existing survey. If one doesn’t already exist, the survey can be negotiated for who pays for it. The average cost is $400 to $550 but can easily cost thousands of dollars for larger properties.
HOA Documents
The buyer will typically ask the seller to cover the cost of furnishing the HOA bylaws, rules, regulations, and other documents. Price will range depending on the HOA but cost around $200 to $250.
Resale Certificate
Sometimes included in the HOA documents is the resale certificate. The HOA documents and the resale certificate together are called a resale package and can cost $400 to $500.
If it’s not included in the HOA documents, the accounting information the title company needs in order to close will cost $200 to $250 to receive.
Transfer Fee
The buyer usually pays for this fee. A transfer fee is an administrative fee paid to the HOA to transfer ownership to their system. It costs from $150 to $250.
Commissions
The most considerable fees the seller will pay will be the commission for the seller’s and buyer’s agent. A seller will usually pay 5% or 6% of the sales price in total commissions between the agents.
If you’re ready to sell this month, contact us today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.
