Thinking about your bottom line on a Houston closing? You are not alone. Whether you are buying or selling, the final statement can feel like a maze of line items and timing rules. The good news is that Houston has a few local conventions that can work in your favor, and you can estimate most costs before you write or accept an offer. In this guide, you will see what buyers and sellers typically pay in Houston and Harris County, how much to budget, what is negotiable, and where to verify exact numbers. Let’s dive in.
Houston closing cost essentials
Houston follows Texas norms that shape your closing numbers.
- There is no state or local real estate transfer tax in Texas. That removes a cost you might see in other states.
- It is customary for the seller to pay for the owner’s title insurance policy in Texas. Contracts can change this, so confirm in writing.
- Property taxes in Harris County are collected in arrears and prorated at closing. Each party pays their share based on the closing date.
- Lenders must deliver a Loan Estimate within 3 business days of application and a Closing Disclosure at least 3 business days before closing. Use these to confirm charges and cash to close.
Buyer closing costs: what you pay
Plan for closing costs on top of your down payment. In many Houston purchases, financed buyers spend about 2% to 5% of the purchase price on closing costs. Your total depends on your loan program, contract terms, price point, and timing.
Lender fees and loan charges
These include origination, underwriting, processing, credit report, and any discount points. In aggregate, this bucket often runs 0.5% to 1.5% of the purchase price, or a mix of flat fees plus points. You will see these on your Loan Estimate.
Appraisal
Most lenders require an appraisal to confirm value. Typical Houston range is $400 to $800 for a standard single family home. Complex properties may cost more.
Title and escrow charges
In Texas, buyers usually pay for the lender’s title insurance policy when financing. You may also see an escrow or closing fee, title search, and notary costs depending on the contract. Expect a few hundred to a few thousand dollars in total for these items, scaled to price.
Recording and mortgage filing fees
Harris County recording and any mortgage filing fees are generally modest. Budget tens to a few hundred dollars depending on document count.
Prepaids and escrow reserves
Your lender will collect prepaid items like homeowner’s insurance and property taxes, plus an initial escrow cushion. This can be a larger lump sum, often $1,000 to $5,000 or more, depending on taxes, insurance, and your closing date.
HOA and condo charges
Buyers may see HOA transfer, move in, or resale document fees. In Houston, these often run $100 to $500 or more for larger associations. Who pays is negotiable in the contract.
Inspections and survey
Plan for a general home inspection plus any specialty inspections you choose. Typical general inspection runs $300 to $700. If a new survey is required, budget $300 to $1,500 depending on type.
Miscellaneous items
Depending on the property and loan, you may see HOA estoppel charges, municipal utility district items, or program specific fees. VA and FHA loans have unique fee structures that can appear at closing or be financed.
Buyer examples
$300,000 purchase price
- Estimated buyer closing costs: $6,000 to $12,000
- Lender, appraisal, title, and recording: $2,000 to $6,000
- Prepaids and reserves: $1,500 to $4,000
- Inspections, survey, and HOA: $500 to $2,000
$500,000 purchase price
- Estimated buyer closing costs: $10,000 to $20,000
- Loan and title components scale with price, and prepaids can rise with taxes and insurance.
Tip: Seller concessions can reduce your out of pocket costs, subject to loan program limits. Cash buyers avoid loan related fees but still have title, recording, inspections, and any escrow charges.
Seller closing costs: what you pay
Sellers tend to have fewer line items but larger totals because of commission and the owner’s title policy. Including commission and common fees, many sellers in Houston see about 6% to 10% of the sale price deducted from proceeds.
Real estate commission
Commission is typically the largest cost and is negotiated in the listing agreement. State and national medians often fall in the 5% to 6% range of the sale price, split between listing and buyer brokers.
Owner’s title policy and closing fees
In Texas it is customary for the seller to pay the owner’s title insurance premium. The premium is set by regulated rate schedules and scales with price. Sellers may also pay part or all of the title or escrow fee as negotiated.
Prorated property taxes and HOA dues
You will credit the buyer for your share of the current year’s taxes through the closing date. Any unpaid HOA dues or special assessments are resolved at closing.
Repairs, credits, and concessions
Repair requests and credits are contract specific. These can range from minor items to several thousand dollars if larger issues are found during inspections.
Payoff of liens and mortgage
Your mortgage payoff, including per diem interest, and any liens are paid from proceeds at closing. Obtain payoff statements early to avoid delays.
Recording and small administrative fees
Sellers often pay the deed recording fee and small closing office charges such as courier or wire fees. These are typically modest.
Seller examples
$300,000 sale price with a 6% commission
- Commission: $18,000
- Owner’s title policy and closing fees: $1,500 to $2,500
- Prorated taxes, HOA, and municipal: $500 to $2,000
- Repairs or concessions: $0 to $5,000
- Estimated total deductions: about $20,000 to $28,000
$750,000 sale price with a 5.5% commission
- Commission: $41,250
- Owner’s policy and fees: $3,000 to $6,000
- Prorated taxes and other fees: $1,000 to $5,000
- Estimated total deductions: about $45,000 to $55,000 or more
Special situations to know
HOA and condo documentation
Associations often charge for transfer, resale packages, or estoppel letters. In Houston, fees commonly range $100 to $500 and can be higher for larger condo buildings. Responsibility for these fees is negotiable.
Surveys
A lender or title company may require a current survey. Budget $300 to $800 for a typical mortgage or boundary survey. Detailed ALTA or commercial grade surveys can run $1,000 to $2,500 or more. Who pays is set by the contract.
New construction
Builders vary on what they cover. Some offer closing cost incentives, while others pass certain items to the buyer. Expect items like permits, utility connections, and HOA initiation or transfer fees to appear in the paperwork. Timing can differ if there is a construction loan that converts to permanent financing.
Loan program differences
- VA loans include a funding fee that can be financed, and there are limits on seller concessions.
- FHA and USDA loans have program specific rules for allowable seller paid costs and upfront mortgage insurance. These rules affect how you structure concessions and escrow funding.
Cash versus financed
Cash closings skip lender fees, underwriting, and a lender appraisal. You still should plan for title related charges, recording, inspections, and surveys as required. Cash deals can close faster with fewer third party requirements.
How to budget and verify your numbers
Buyer checklist
- Request a Loan Estimate early that details lender fees, rate options, and escrows.
- Ask a local title company for a sample settlement statement for your price point and neighborhood type.
- Budget for inspections and a survey if required. Add HOA transfer or resale fees if applicable.
- Confirm worst case prepaids and escrow reserves with your lender so you are never short on cash to close.
Seller checklist
- Ask your agent for a net sheet that includes commission, owner’s title premium, prorations, and estimated closing fees.
- Order mortgage and lien payoff statements as soon as your listing goes live.
- Review HOA status, dues, and any special assessments so there are no surprises at closing.
Timing to expect
- Your lender provides a Loan Estimate within 3 business days of application.
- You must receive a Closing Disclosure at least 3 business days before closing. Review every line and ask questions early.
- HOA resale packages and estoppel letters can take days to weeks. Build those timelines into your contract and option period.
Smart negotiation moves
- Trade price and concessions thoughtfully. Buyers focused on cash to close may ask for seller paid closing costs. Sellers aiming to protect net may prefer a stronger price and fewer credits.
- Decide on repair credits versus repair completion. Credits can streamline closing and let buyers handle work after move in.
Ready to run precise numbers for your situation in Houston or across Greater Houston markets like The Woodlands, the Heights, the Galleria area, or the coast? Connect with a local expert who will prepare a clear buyer estimate or seller net sheet and help you negotiate the right structure for your goals. Discover the concierge guidance and market reach of Nan & Co Properties.
FAQs
What closing costs do Houston buyers typically pay?
- Financed buyers often pay 2% to 5% of the purchase price, including lender fees, appraisal, lender’s title policy, recording, prepaids, inspections, and any HOA charges.
Do Houston sellers usually pay for title insurance?
- Yes, it is customary in Texas for the seller to pay the owner’s title insurance premium, although the contract can allocate costs differently.
Is there a real estate transfer tax in Houston or Harris County?
- No, Texas does not have a state transfer tax, and local jurisdictions typically do not charge one either.
How are property taxes handled at closing in Harris County?
- Taxes are collected in arrears and prorated at closing, so each party pays their share based on the closing date.
When will I see my final closing numbers?
- Your lender must provide a Closing Disclosure at least 3 business days before closing, which lists final charges and cash to close.
How much do sellers usually pay overall?
- Including commission, owner’s title policy, prorations, and typical fees, many sellers see about 6% to 10% of the sale price deducted from proceeds.
Do new construction closings have extra fees in Houston?
- Builders sometimes offer incentives, but you may also see permit, utility, and HOA initiation fees, plus standard buyer costs like title, recording, inspections, and prepaids.
