Closing Costs in Texas - The Ultimate Guide for 2025

When you’re buying or selling a home in Texas, it’s important to understand the closing costs involved. These costs can add up quickly, so it’s important to be prepared before you get to the closing table. Estimated closing costs can be calculated using various tools and calculators, which help estimate expenses such as origination charges, total loan costs, taxes, and other government fees.

Below, we break down the most common real estate closing costs in Texas and what you can expect to pay. Keep in mind that these costs can vary depending on your location and price of your home.

Whether you are buying a home in Houston or Dallas, Texas law requires that buyers be informed of all transaction fees at least three business days before closing. These fees are in addition to the down payment and differ for buyers and sellers.

For instance, a home buyer in Austin pays closing costs that may include a mortgage application fee, loan origination fee, points fee, appraisal fee, credit report fee, a title search fee and insurance premium, and a survey fee. Closing costs for a seller typically include a real estate commission, title insurance, escrow fees, recording fees, and property taxes.

The average closing costs for buyers in Texas are approximately 2% to 5% of the purchase price, with a good rule of thumb of 3% for a quick ballpark estimate. To estimate the total closing costs, buyers can use the equation: Total Closing Costs = Purchase Price x Closing Cost Percentage. This includes specific fees and charges such as loan origination fees, appraisal fees, title insurance, and escrow fees.

The average closing costs for sellers in Texas are approximately 6% to 9% of the sale price, with real estate broker commission as the largest seller closing cost.

When you’re buying or selling a home in Texas, there are a number of ways to reduce your closing costs. Understanding Texas closing costs can help identify areas where savings can be made.

As a seller, you should focus your attention on your largest closing cost - real estate broker commission. A buyer's closing costs can also be reduced by negotiating with the lender and comparing different loan offers. The best way to minimize your overall closing costs is to negotiate the listing commission.

To do this, interview multiple agents to compare and contrast the services they provide during your sale process. Not only does this allow you to make an informed decision, it also enables you to create competition between the agents to be flexible on the commission they will charge for your listing.

As a buyer, you can offset your closing costs by hiring a real estate broker that offers a commission rebate. Most traditional brokers do not offer them, therefore it is important to speak with several firms before deciding on which buyer’s agent you will work with.

By taking these steps, you can save thousands of dollars on your closing costs.