Ever wonder where all the closing dollars go in an East Austin sale? When you understand who pays what, you can plan your cash, negotiate with confidence, and avoid last‑minute surprises. Whether you are a first‑time buyer or an equity‑rich seller, a clear breakdown helps you keep more of what matters. In this guide, you will learn typical costs in Travis County, what is negotiable, and when funds are due. Let’s dive in.
What closing costs cover in Austin
Closing costs are the fees to originate the loan, insure title, record documents, and prepay items like property taxes and homeowners insurance. In Texas, a title and escrow company coordinates closing, prepares the final statement, and disburses funds to the right parties. The lender must issue a final Closing Disclosure so your numbers are clear before you sign.
Texas does not have a statewide real estate transfer tax. Travis County does charge recording fees, but these are administrative and smaller than major items like commission and title insurance.
Who pays what in East Austin
Buyer‑paid costs
- Loan charges, such as origination, underwriting, and points if you choose them.
- Appraisal and credit report fees.
- Lender’s title policy and mortgage recording fees.
- Survey if required by the lender and not provided by the seller.
- Inspections and optional home warranty.
- Prepaids and escrows for property taxes, homeowners insurance, and interest.
- Some title and escrow fees, which can be split by agreement.
Seller‑paid costs
- Real estate broker commissions, typically the largest seller expense. Industry data shows total commissions have often been in the mid‑single digits as a percent of price, though local splits vary.
- Owner’s title insurance policy, which is customary in Texas but negotiable.
- Title and escrow fees as negotiated.
- Recording and release fees to clear existing mortgages or liens.
- Prorated property taxes up to the closing date.
- HOA estoppel or transfer items where required by the community documents, as negotiated.
Costs you can negotiate
- Who pays the owner’s title policy.
- Escrow and closing fees with the title company.
- Recording fees allocations.
- Repairs or a credit in lieu of repairs after inspection.
- Seller concessions toward buyer closing costs, up to loan program limits.
No transfer tax, but recording fees
Texas does not levy a real estate transfer tax on the sale price. Travis County collects recording and related administrative fees to file the deed and deed of trust. For current county procedures and schedules, review the Travis County Clerk resources on the county site.
Typical cost ranges and examples
Exact numbers depend on your contract, lender, title company, and property. Title premiums in Texas are regulated by the state, so ask the title company for a written quote. Buyer loan costs and prepaids vary by program and rate strategy.
Entry‑level condo or townhome, $350,000
- Seller: Commission is often the biggest line item. With customary commission percentages and a seller‑paid owner’s policy, a seller might see roughly $20,000 to $25,000 or more in total costs before any mortgage payoff and prorations.
- Buyer: Closing costs and prepaids often run about 2 to 4 percent of price, or about $7,000 to $14,000, plus inspections and appraisal.
Mid‑range single‑family, $650,000
- Seller: Commission plus the regulated owner’s title premium and routine fees often total about $36,000 to $45,000 or more before payoff and prorations.
- Buyer: Many buyers see 2 to 4 percent in closing costs and prepaids, about $13,000 to $26,000, plus inspections and appraisal.
Upper‑range home, $1,200,000
- Seller: Commission dominates. With title premium and routine items, total costs before payoff often start around $70,000 and increase with price.
- Buyer: Closing costs and prepaids commonly land near 2 to 3 percent on larger loans, about $24,000 to $36,000, plus inspections and any specialty reports.
These ranges illustrate how commission drives most seller costs, while buyer totals hinge on loan program, rate choices, and prepaids.
When your money is due
Earnest and option fees
In Texas, earnest money is usually due within 1 to 3 days after contract execution and is held in escrow. Many buyers choose an option period for inspections and pay an option fee directly to the seller at contract execution. Deadlines and amounts are set by your contract forms.
Inspections, appraisal, insurance
You will typically pay for inspections at scheduling and for the appraisal during loan processing. You also line up homeowners insurance so the first year’s premium can be collected at or before closing. Lenders coordinate with the title company on final figures once third‑party invoices are in.
Cash to close and final numbers
By federal rule, your lender must provide the Closing Disclosure at least three business days before closing. That timeline sets when final numbers are locked and when you wire your cash to close. Follow the title company’s wire instructions exactly and verify them by phone using a known good number to avoid fraud.
HOA and condo considerations
Many East Austin homes and condos sit in communities with HOA requirements. Expect transfer or estoppel certificates that confirm dues status and rules. Who pays these can be negotiated in the contract. Plan for HOA document ordering early to avoid delays.
Seller concessions and lender limits
Sellers in East Austin can agree to pay a portion of a buyer’s closing costs or prepaids to help with cash to close. Lender rules limit how much a seller can contribute. Conventional loans cap concessions based on down payment and occupancy, and FHA, VA, and USDA programs have their own limits. Always verify the current cap with the buyer’s loan officer before finalizing terms in the contract.
Smart negotiation tips
For East Austin buyers
- Request written loan estimates from at least two lenders so you can compare rates, points, and fees.
- Ask the title company for an itemized quote that includes the regulated owner’s title premium and all closing fees.
- Negotiate seller credits up to your program limit and weigh points versus credits to optimize your monthly payment and cash to close.
- Be ready to deliver earnest money and the option fee quickly so you can keep your timelines on track in competitive situations.
For East Austin sellers
- Review commission structure and services so you understand how marketing, presentation, and negotiation affect net proceeds.
- Order a title estimate early to uncover any liens or payoff issues that could impact your timeline.
- Consider a pre‑inspection or a repair credit budget to reduce friction after the buyer’s inspection.
- If offering buyer closing cost credits, set a clear cap tied to lender rules so the credit can be fully used.
Pitfalls to avoid
- Not verifying wire instructions by phone with the title company.
- Assuming fees are fixed. Get written quotes from your lender and title company early.
- Forgetting prorations for taxes and HOA dues when calculating net or cash to close.
- Delaying HOA document orders, which can stall a condo closing.
How sellers receive proceeds
The title and escrow company releases funds once all documents are signed, buyer and lender funds are received, and required payoffs and releases are confirmed. Your net is calculated after commissions, prorated taxes, HOA items, payoffs, and any seller‑paid costs. You can usually choose a wire to your bank once the file is balanced and disbursement is authorized.
Quick checklists
Buyer checklist
- Request loan estimates and compare fees, points, and rates.
- Order inspections quickly and budget for appraisal.
- Ask for an itemized title quote and verify prepaids.
- Confirm your Closing Disclosure numbers and wire instructions.
Seller checklist
- Review commission, service plan, and estimated net sheet.
- Order a title report early and clear any liens.
- Plan for prorated taxes and potential repair credits.
- Confirm wire details for your proceeds before closing.
If you want a calm, guided closing that respects your time and your bottom line, let’s talk about your East Austin plan. Reach out to Jessica Galvan for a personalized walkthrough of your numbers, negotiation options, and next steps.
FAQs
What are typical buyer closing costs in East Austin?
- Many buyers see about 2 to 4 percent of the purchase price for loan charges, title and escrow fees, recording, and prepaids, plus inspections and appraisal.
Do sellers in Austin pay the owner’s title policy?
- It is customary in Texas for the seller to pay the owner’s title policy, but it is negotiable and can change with market conditions.
Is there a transfer tax on Travis County home sales?
- No. Texas does not have a state real estate transfer tax. Travis County collects administrative recording fees instead.
When will I get my Closing Disclosure and wire amount?
- The lender must deliver your Closing Disclosure at least three business days before closing, which locks your final cash to close timeline.
Who pays HOA estoppel and transfer fees in East Austin?
- It depends on the contract. In many transactions these items are negotiated, so confirm responsibilities early and order documents promptly.
How are property taxes handled at closing in Travis County?
- Property taxes are paid in arrears and prorated at closing based on the closing date, with each party paying their share for the year.
Learn about federal Closing Disclosure timing and consumer protections. For title insurance regulation and premium schedules, see the Texas Department of Insurance. Review Texas contract forms and rules with the Texas Real Estate Commission. For local practice guidance, explore Texas REALTORS resources. Verify appraisal and tax details with the Travis Central Appraisal District and recording procedures with the Travis County Clerk. For industry context on commissions, visit the National Association of REALTORS.
