So you’ve found a house that fits all of your needs: the right amenities, the right location, the right price, and now you’re ready to make an offer. But not so fast!
Before you start seriously considering buying land in Texas, you need to understand all of the additional costs that can come into play when buying a home.
When you buy a house or piece of land, the sale price for the property isn’t all you’ll need to pay. Keep reading to learn more about closing costs and how much you can expect to pay in Texas.
What Are Closing Costs?
In Texas, both buyers and sellers pay closing costs on land purchases. Closing costs are meant to cover the expenses associated with the process through which land changes ownership.
Closing costs vary, but you might be expected to pay attorneys’ fees, appraisal fees, and lender fees.
What the Buyer Might Pay
- Credit report fee
- Loan application fee
- Home inspection
- Appraisal fee
- Prepaid costs
What the Seller Might Pay
- Attorney fees
- Homeowners association documentation
- Mortgage payoffs
- Real estate agent commissions
- Outstanding bills
- Seller concessions
What Either or Both Might Pay
- Escrow fees
- Recording fees
- Notary fees
- Municipal lien search
- Title search
- Title insurance
- Prorated property tax
- Home warranty
Closing costs can be higher than you might expect, so it’s important to get a good idea of what you’ll need to pay before the day actually comes.
How Much Are Closing Costs in Texas?
The amount you can expect to pay in closing costs can differ from home to home, and the price paid by sellers is often different from the price paid by buyers. While buyers can expect to pay between 2% and 6% of the home’s sale price in closing costs, sellers have a higher burden, averaging out at between 6% and 10% of the sale price. You can get a quick range for how much you’ll pay by multiplying the price of the home by the upper and lower average percentage.
Other Costs To Consider When Buying Land in Texas
Closing costs aren’t the only expense that you should keep in mind when buying a home in Texas. While closing costs do cover the additional fees and expenses you can expect to pay when you buy the property, there are other things you’ll need to start paying soon after the purchase, including:
- Home insurance
- Property taxes
It’s a good idea to start planning for these expenses before you decide on which property to buy. For instance, if considerable maintenance is needed or utilities are particularly high, it could have a major impact on your decision.
How Can I Save Money Buying Land Near Me?
If you’re looking to buy land in Texas, seller financing might just be the solution you’ve been looking for to make that dream a reality. Seller financing lets buyers access favorable rates even if their credit is poor.
Reach out to the team of real estate experts at SRC Land to learn more about your options for buying affordable land in Texas. We can help you find the perfect place, at the perfect price.