Buying real estate isn’t quite as simple as buying groceries at your local store. When you buy most things, you can expect to pay the total price plus tax. This isn’t the same for land purchases.
When you buy land in Texas, you won’t just be paying for the cost of the land itself. Instead, there will be a variety of different services and fees that you’ll need to pay before you become the owner.
Both buyers and sellers can expect to pay closing costs on land purchases in Texas, but we’ll primarily be considering the costs you’ll need to pay to buy land. Keep reading to learn more from Texas land developers.
What You Might Have To Pay for Closing Costs on Land Purchase
When you buy land in Texas, you have to pay to complete that purchase legally. Usually, you can expect to pay for the following closing costs on land for sale in Texas:
- Appraisal Fee — To get financing for your land purchase, you’ll need to have the land appraised.
- Credit Report Fee — You may need to pay to get your credit checked, unless you buy using seller financing.
- Loan Application Fee — If you’re applying for a loan, you may have to pay to complete the process.
- Prepaid Costs — Prepaid costs are the expenses you’ll need to pay as a landowner, which you pay before they’re technically due. This can include property tax and mortgage interest.
Keep in mind that the various fees and expenses you’ll need to pay may vary, particularly if you decide to buy owner-financed land in Texas. Owner-financing lets you skip much of the often costly process of getting traditional financing.
How Much Are Land Purchase Closing Costs in Texas?
There’s no average amount that you can expect to pay for closing costs on land purchases in Texas. Instead, closing costs are estimated as a percentage of the total cost of the land. It’s important to remember that these figures can vary widely.
In general, as a buyer, you can expect to pay between 2% and 6% of the land’s sale price in closing costs. This should give you an idea of the range your closing cost total may fall into.
Find the Right Texas Land for Sale With SRC Land
Paying closing costs is one of the last steps that you’ll take when buying land in Texas, and there are many other steps you’ll need to take first. Perhaps the most important part is finding the right land for sale to fit your needs.
If you’re looking to buy land in Texas, the Texas land developers at SRC Land can help you find the perfect Texas lot for sale. We have the expertise to determine what land and amenities you need, and where to find them.
