Are you trying to figure out who pays what at closing in the Austin area? You’re not alone. Closing costs can feel confusing, especially when customs and negotiations vary by neighborhood. In this guide, you’ll learn what buyers and sellers typically pay in Round Rock and Williamson County, what can be negotiated, and the local details that affect your bottom line. Let’s dive in.
How closing costs work in Texas
Customs vs. contract
Texas follows common market customs, but the contract controls. Most resale deals use Texas Real Estate Commission forms that spell out responsibilities and allow for negotiation. Customarily, sellers pay for the owner’s title insurance policy and buyers cover lender-related costs, but you can agree to different terms in writing.
No transfer tax
Texas does not have a state real estate transfer tax. You will still see county recording and document fees, which are typically modest compared to other costs.
Title and closing
In the Austin area, licensed title companies handle title insurance and escrow. Either party may propose the title company. Your agent can advise based on local practice, but confirm who selects the title company in your contract.
Typical buyer closing costs in Round Rock
What buyers usually pay
- Loan origination and lender fees
- Appraisal, credit report, and underwriting or processing fees
- Lender’s title insurance policy and related title exam fees
- Recording fees for the mortgage and buyer documents
- Initial escrow deposits for property taxes and homeowners insurance
- Mortgage insurance premium if applicable
- Survey fee if a new survey is needed
- Home inspections and specialty inspections
- HOA transfer or estoppel fees if assigned to the buyer
- Prepaid interest from funding date to first payment date
How much buyers typically pay
A common rule of thumb is 2% to 5% of the purchase price for buyer closing costs, including prepaids and escrows. Your exact numbers depend on your loan program, any lender credits, and local fees. Use your Loan Estimate and the Closing Disclosure you receive before closing for precise, itemized costs.
Who chooses the title company
Selection is negotiable. In practice, the chosen title company is often based on the party paying for the owner’s title policy or mutual preference. Make sure the contract reflects your agreement.
Typical seller closing costs in Williamson County
What sellers usually pay
- Real estate commission, commonly the largest expense and negotiated in the listing agreement
- Owner’s title insurance policy per local custom
- Title company closing or escrow fee if assigned to seller
- Deed preparation or attorney fees if used
- Existing mortgage payoff and any prepayment penalties
- Recording fees for releases or satisfactions
- Agreed repairs or concessions from negotiations
- HOA resale certificate and potential transfer fees if assigned to seller
- Prorated property taxes through the closing date
- Any unpaid utilities, assessments, or special district obligations
How much sellers typically pay
When you include commissions, owner’s title policy, and standard fees, seller costs often total roughly 6% to 8% of the sale price before any mortgage payoff. Actual totals vary with price point and negotiated concessions.
What sellers rarely pay
Sellers do not usually pay buyer loan origination charges or other buyer-specific loan fees unless agreed as a concession.
Credits and concessions that shift costs
Seller credits to buyer
Seller-paid credits can reduce a buyer’s cash to close. They are applied at closing and may be used for allowable costs such as lender fees or prepaids. Loan programs set limits on how much a seller can contribute, so buyers should confirm caps with their lender.
Lender credits and buydowns
A buyer can accept a slightly higher interest rate to receive a lender credit that covers part of closing costs. Alternatively, a buyer or seller can fund a rate buydown. Both strategies must meet loan program rules and will affect monthly payments and long-term costs.
Rolling costs into the mortgage
Some fees can be financed into the loan depending on program guidelines. This increases the loan amount and monthly payment and can affect approval.
Earnest money vs. closing costs
Earnest money is a deposit applied to your funds due at closing. It is not an extra fee and will appear as a credit on your settlement statement.
Repair credits vs. repairs
Instead of completing repairs before closing, a seller may offer a credit. Sellers often prefer credits for scheduling simplicity. Buyers may prefer repairs completed in advance. Either path should be clearly shown on the Closing Disclosure.
Local Round Rock specifics to watch
Property tax proration
Texas property taxes are paid in arrears and are prorated at closing. Sellers typically cover their share through the closing date, and buyers receive credit for the remainder. Williamson County rates and special district assessments can affect cash to close, so request a tax certificate or payoff estimate early.
HOA and community fees
Round Rock neighborhoods frequently have HOAs that require a resale package. Fees and timelines vary, and delay can impact closing. Confirm who pays for the resale certificate and any transfer fees in your contract.
Recording and county fees
Recording fees set by the Williamson County Clerk apply to documents recorded at closing. These are usually modest but should be included in your estimates.
Market dynamics
In faster Austin-area markets, sellers may offer fewer concessions. In slower conditions, sellers often use credits to attract offers, offset appraisal gaps, or resolve inspection items. Local guidance helps you calibrate expectations.
Quick checklists for buyers and sellers
Buyer checklist
- Request a Loan Estimate and ask for an itemized closing cost breakdown and required escrows.
- Confirm who pays for owner’s and lender’s title policies in your contract.
- Ask about HOA fees, transfer charges, and who pays them.
- Confirm tax proration method and whether your lender requires an escrow account.
- Verify seller concession limits with your lender for your specific loan type.
Seller checklist
- Order mortgage payoff statements early.
- Confirm who will pay for the owner’s title policy based on local custom and your contract.
- Discuss typical commission structures and likely buyer concession requests in the current market.
- Request estimates for prorated property taxes, HOA demands, and recording fees.
Examples from Round Rock deals
First-time buyer illustration
- Purchase price: $350,000
- Typical buyer closing costs estimate: 2% to 4% equals about $7,000 to $14,000, including prepaids and lender fees
- Negotiation lever: a $3,000 seller credit could reduce the buyer’s cash to close
These figures are illustrative. Your loan program, lender credits, and local fees will change the totals.
Move-up seller illustration
- Sale price: $600,000
- Commission at 6% equals $36,000, with owner’s title policy and closing fees adding about $1,000 to $3,000
- Net proceeds depend on mortgage payoff, prorations, repairs, and other agreed costs
Again, these examples are not quotes. Your numbers will reflect your pricing, payoff, and negotiated terms.
Make your numbers predictable
Ask early and get everything in writing. Your lender’s Loan Estimate and the Closing Disclosure provide the clearest picture of buyer costs. Sellers receive a settlement statement that shows net proceeds. Remember, there is no state transfer tax in Texas, but you should plan for county recording fees, HOA-related costs, and tax proration.
Ready to plan your closing
If you want a clear, step-by-step estimate tailored to your Round Rock home, reach out for a quick consult. With local experience across Williamson County and a negotiation-first approach, we will help you structure costs and credits to meet your goals. Connect with Erika Levack to get started.
FAQs
Who pays title insurance in Texas?
- Customarily, the seller pays for the owner’s title insurance policy and the buyer pays for the lender’s policy, subject to your contract.
Do buyers pay closing costs in the Austin area?
- Yes. Buyers typically pay lender fees, appraisal, lender’s title policy, recording of the mortgage, prepaids for taxes and insurance, and escrow deposits.
Can a seller pay my closing costs in Round Rock?
- Yes. Seller credits are common, but loan programs limit how much a seller can contribute, so confirm caps with your lender.
Is there a real estate transfer tax in Texas?
- No. Texas does not impose a state real estate transfer tax, though county recording fees still apply.
How do I know exact closing costs before closing?
- Review your Loan Estimate early and your Closing Disclosure issued before closing for exact, itemized buyer costs. Sellers receive a settlement statement.