Closing Costs in Georgetown: Buyer vs. Seller

Are you trying to pin down who pays what at closing in Georgetown? You are not alone. Closing costs can feel confusing, especially if this is your first Texas transaction. In this guide, you will learn which fees buyers and sellers usually cover, how much to budget, and the local Georgetown factors that can change the numbers. Let’s dive in.

What closing costs cover in Texas

Texas uses standard TREC contracts that spell out how costs can be assigned, and many items are negotiable. You can explore the contract forms on the Texas Real Estate Commission site. Local customs still guide who pays which fees, so it helps to know what is typical in Georgetown and Williamson County.

Texas does not have a state real estate transfer tax. You still pay title, recording, and lender-related fees where applicable. Property taxes and some community charges are local. For Georgetown homes, confirm taxing entities and assessed values through the Williamson County Appraisal District.

Title insurance premiums in Texas are regulated. It is common for the seller to pay for the owner’s title policy, while the buyer pays for the lender’s policy if there is a mortgage. For background on title insurance in Texas, visit the Texas Department of Insurance or the Texas Land Title Association.

Who pays what: buyer vs. seller in Georgetown

Common buyer-paid costs

• Lender fees such as origination, processing, and underwriting. Your lender will itemize these in your Loan Estimate and later in your Closing Disclosure. See the CFPB’s overview of the Loan Estimate and Closing Disclosure.
• Appraisal and credit report fees when financing.
• Inspections, including home and wood-destroying insect reports.
• Lender’s title insurance policy if using a mortgage.
• Recording fees for the new deed and deed of trust, based on county schedules.
• Initial escrow deposits for property taxes and homeowners insurance.
• Survey cost if a new survey is required and the contract assigns it to the buyer.

Typical buyer closing costs, not including your down payment, often range from about 2% to 5% of the purchase price. Your actual total depends on your loan type, lender fees, prepaids, and escrow setup.

Common seller-paid costs

• Real estate commission, paid from seller proceeds. National research often places combined commission near the 5% to 6% range, but it is fully negotiable and varies by agreement. For general context, see NAR’s research and statistics.
• Owner’s title insurance policy premium, which is customary for sellers in many Texas markets, including Williamson County.
• Payoff of any existing mortgages and liens.
• Prorated property taxes through the closing date, based on local practice.
• HOA transfer and estoppel fees where applicable, if assigned to the seller by contract or custom.
• Agreed repairs or concession credits negotiated during the option/inspection period.

With commission included, total seller costs often range from about 5% to 10% of the sales price. Without commission, many seller-side fees fall closer to 1% to 3%.

Split or negotiable items

• Title company settlement or closing fee. Some deals split this; others assign it to one side.
• Survey costs. If the seller has an acceptable existing survey, it may be used. If a new one is needed, payment depends on the contract.
• Seller credits to the buyer. A seller can offer to cover some buyer closing costs within lender limits. Your lender must approve any concessions.

How to estimate your total

A simple framework

• For buyers:

  1. Start with your down payment.
  2. Add lender fees and third-party charges from your Loan Estimate.
  3. Add inspection, appraisal, and survey if needed.
  4. Add prepaids for taxes and insurance to fund your escrow.
  5. Add the lender’s title policy and recording fees.

• For sellers:

  1. Begin with your expected sale price.
  2. Subtract commission based on your listing agreement.
  3. Subtract the owner’s title policy premium.
  4. Subtract your mortgage payoff(s) and any lien releases.
  5. Subtract prorated property taxes and HOA transfer/estoppel fees.
  6. Subtract agreed repairs or credits.

A quick example

On a $400,000 home:

• Buyer closing costs at 2% to 5% may run about $8,000 to $20,000. This includes lender fees, appraisal, inspections, escrow prepaids, lender’s title policy, and recording fees. Your Loan Estimate and Closing Disclosure will refine this.
• Seller closing costs at 5% to 10% may run about $20,000 to $40,000. For example, a 6% commission would be $24,000. Then add owner’s title policy, prorated taxes, and any credits or payoffs.

These are planning examples. Your title company will provide a detailed seller net sheet or closing statement, and buyers will receive a Closing Disclosure at least three business days before signing.

Georgetown norms and special cases

• Title insurance: It is common for sellers to pay the owner’s title policy in Texas. Premiums are regulated. You can learn more through the Texas Department of Insurance and the Texas Land Title Association.
• Surveys: If the seller can provide a recent, acceptable survey, you may not need a new one. If a new survey is required, payment is set by the contract.
• HOAs: Many Georgetown communities have HOAs that charge transfer and estoppel fees. These are often, but not always, paid by the seller. Check with the HOA early so you can plan.
• MUDs and special districts: Some neighborhoods are in municipal or special utility districts that assess separate taxes or fees. Use the Williamson County Appraisal District to look up taxing entities and confirm district status.
• Property taxes: Texas taxes are local and prorated at closing. Sellers generally pay through the day of closing, and buyers take responsibility after that date. If the current-year bill is not out, title companies use prior-year figures or estimates.
• Local government and utilities: For city services and utility context, visit the City of Georgetown.

Quick checklists

Buyer cash-to-close checklist

• Review your Loan Estimate within three days of application.
• Plan for appraisal, inspections, and survey if needed.
• Budget for prepaids and escrow deposits for taxes and insurance.
• Confirm title charges, including the lender’s title policy and settlement fee.
• Verify wire instructions with your title company by phone to avoid fraud.
• Bring a government-issued photo ID to closing.

Seller net sheet checklist

• Confirm your listing commission and any marketing-related costs.
• Request a written mortgage payoff from your lender early.
• Ask the title company to estimate the owner’s title policy premium and closing fees.
• Estimate prorated property taxes and HOA transfer or estoppel fees.
• Set aside funds for agreed repairs or credits.
• Provide HOA documents and any existing survey for review.

Glossary of key closing terms

• Loan Estimate: A lender document that outlines your projected loan costs and cash to close. The CFPB explains it here: Loan Estimate.
• Closing Disclosure: A final, itemized list of all costs due at closing for buyers. Review it at least three business days before you sign. See the CFPB’s Closing Disclosure.
• Owner’s title policy: Insurance that protects the new owner’s title. In Texas, the seller often pays this premium.
• Lender’s title policy: Insurance that protects the lender’s interest. Buyers typically pay this if they finance.
• Escrow or impound account: An account your lender uses to collect and pay property taxes and insurance.
• Prorations: The fair split of annual costs, like property taxes, between buyer and seller based on the closing date.
• Estoppel letter: A statement from the HOA confirming dues and balances for the property.
• MUD or special district: A local taxing entity that funds utilities or infrastructure. Check property records through WCAD.
• HOA transfer fee: A fee the HOA may charge to process ownership changes.
• Recording fee: County charge to record the deed and any deed of trust.
• Wire fraud warning: Always verify wiring instructions with your title company by calling a verified number. Never rely solely on email.

Smart next steps

• Buyers: Request and compare Loan Estimates from at least two lenders. Review your Closing Disclosure carefully when it arrives. If anything looks off, ask your lender and title company to clarify.
• Sellers: Ask your title company for a draft seller net sheet early. Request a written payoff from your lender and gather HOA documents.
• All clients: Confirm taxing entities through WCAD, ask your agent which title companies are performing well locally, and keep the contract clear on who pays for surveys, title premiums, repairs, and HOA fees.

If you want a clear estimate tailored to your address and price point, connect with REALTOR® DJ for a quick strategy session. You will get local guidance, a custom outline of buyer or seller costs, and a plan to negotiate the right mix of credits and fees.

FAQs

Who pays for the owner’s title insurance in Texas?

• In many Texas markets, including Williamson County, it is customary for the seller to pay for the owner’s title policy, but this is negotiable in the contract.

Can a Georgetown seller pay the buyer’s closing costs?

• Yes. Sellers can offer concessions to cover some buyer closing costs, subject to lender limits on the buyer’s loan program.

Are closing costs the same as earnest money?

• No. Earnest money is a deposit applied to your purchase; closing costs are separate fees and prepaids due at settlement.

When will I know my exact closing costs as a buyer?

• Your lender must provide a Loan Estimate after application and a Closing Disclosure at least three business days before closing with final numbers.

Who chooses the title company in Texas?

• It is negotiable. Either party can propose a title company in the contract; local custom varies.

How are property taxes handled at closing in Georgetown?

• Taxes are prorated through the closing date. The seller pays their portion up to closing and the buyer assumes the balance for the year.

Who pays for repairs after inspection?

• Payment follows the contract. The seller often handles agreed repairs or provides a credit, but buyers sometimes accept as-is with no repair credit.