There are many nuances to be navigated when a selling a home in Austin, Texas. A seller is looking to at minimum make a small profit and the buyer is searching for a well-priced home. This is why both the seller and buyer need to iron out closing cost details. An Austin seller’s fixed cost is the property tax, which must be paid until the sale is complete. Austin and the State of Texas both allow concessions for the buyer and the seller, which means that closing costs are negotiable.
The end goal is to secure a good legal purchase agreement. Good news for sellers and buyers comes in the form of reduced real estate closing costs. Due to the federal regulation in the Real Estate Settlement Practices Act, the average cost in Texas mortgage closings have fallen by 7.4% since 2012.
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Recording Fees: Austin charges about $16 for the first page of a recording document and $4 for following pages. These recording fees on documents are necessary to clear up any title matters.
Escrow Fee: In order to make sure that all documentations are contractually correct and amenable to both sides, title companies charge an escrow fee. This fee serves as payment for serving as the third party entity for all parties present in closing. The Texas Department of Housing and Community Affairs in Austin charges a standard fee of about $150 for typical homes and $250 for manufactured homes.
Preparatory Documents: Documents retrieved through the Austin County Clerk’s office include preparation of the deed, title transfer documents, loans that need to be paid or released, and any other specialized documents. There is an individual cost for each document, but the general total should be around $150.
Title Insurance: The Texas Department of Insurance requires the seller to provide the Owner’s Title Policy, but even this is negotiable. Fees associated with this document involve tax certificates and a guaranty fee payable to the State of Texas. The guaranty fees are $2 and tax certificates are $10 each.
Broker Commission: This is the payment to an agent who helped to sell your home. The Austin commission fee is generally from two to five perfect.
Attorney Fees: These fees pay the legal representative for the preparation of your deed and the release of liens, usually from $200 to $800.
Miscellaneous Fees: These include postage, courier fees and other nominal fees. In Texas, other fees such as municipal water and sewer fees may be applicable. Additional fees may involve condominium or home owner association fees.
Seller’s and buyer’s should prepare themselves financially for the closing by having their lawyers or real estate agent’s itemize these closing fees. This way a general financial readiness will hopefully facilitate timely closing cost negotiations. Austin, Texas has seen a turnaround in how long houses are sitting on the market. What was once on the market last month, is now gone. Thanks to this area’s economic upturn, more businesses and families are moving to the Austin area creating a market primed for both buyers and sellers.
If you’d like to learn more about selling your home in Austin, contact us or read our free home seller’s eBook:
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