Are you trying to figure out who pays closing costs when you buy or sell a home in Dallas? You’re not alone. Closing costs can feel confusing, especially because “who pays what” depends on Texas custom, your contract, your loan, and today’s market. In this guide, you’ll learn the typical cost split in Dallas, what’s negotiable, and smart strategies to lower your out-of-pocket. Let’s dive in.
What closing costs include
Closing costs are the fees, taxes, prepaids, and adjustments needed to complete a real estate sale. They are separate from the purchase price. You’ll see lender fees, title insurance, appraisal, recording, HOA charges, escrows for taxes and insurance, and any agreed credits.
In Dallas, amounts vary by loan program, home type, and neighborhood. Buyer closing costs, not including your down payment, commonly run about 2 to 5 percent of the price. Your exact number depends on your lender’s fees, rate choices, and required prepaids.
Texas norms in Dallas
Texas has a few norms that shape your bottom line in Dallas County.
- No transfer tax in Texas. There is no state or local real estate transfer tax.
- Title insurance rates are regulated. The Texas Department of Insurance sets title insurance rates, so premiums follow state schedules.
- Custom matters. The Texas Real Estate Commission contract allows negotiation, so costs can shift based on the offer you write or accept.
Seller costs in Dallas
Sellers in Texas commonly pay several major items.
- Real estate commissions, which are typically the largest seller expense and commonly total around 5 to 6 percent of the sale price in many markets.
- The owner’s title insurance policy premium, per Texas custom, though this can be negotiated.
- Payoff of any existing mortgage and lien releases.
- Prorated property taxes through the closing date.
- HOA transfer or resale fees and estoppel certificates, if applicable, which are often seller-paid by local custom.
- Any seller concessions or repair credits that are part of the signed contract.
Buyer costs in Dallas
Buyers typically cover most lender-related and upfront costs.
- Loan origination, processing, and underwriting fees; discount points if you choose to buy down the rate.
- The lender’s title insurance policy.
- Appraisal, credit report, and most inspections required by your lender or desired by you.
- Survey if needed, unless the seller provides a recent, acceptable survey.
- Recording fees for your mortgage and deed, depending on the contract and local practice.
- Escrows for property taxes, homeowner’s insurance, and prepaid interest as required by your lender.
Split or negotiable items
Some costs are split or negotiated case by case.
- Title company closing/escrow fees. Many title companies split these, but practices vary.
- Survey fees if the seller cannot provide an acceptable survey.
- Home warranty, if included, is often a negotiated seller concession.
- Recording charges can be split; often each party covers recording of their own documents.
Title insurance explained
Most financed sales use two policies in Texas: an owner’s policy that protects you as the homeowner and a lender’s policy that protects the lender. By custom, the seller pays the owner’s policy and the buyer pays the lender’s policy. Because the Texas Department of Insurance regulates title premiums, the price follows a state schedule rather than a free-market quote. Title company fees for closing and related services can vary and are negotiable.
Lender credits and program limits
You can reduce your cash due at closing by using lender credits, which usually come with a higher interest rate. Your Loan Estimate will outline these tradeoffs, and your Closing Disclosure will show the final numbers. Federal rules require your lender to provide the Closing Disclosure at least three business days before closing so you can review seller credits, lender credits, and all fees.
Seller-paid costs are also limited by loan program rules. FHA, VA, and conventional loans all set maximums for concessions and may restrict what the seller can pay. Your lender will confirm the exact limit for your loan type, down payment, and occupancy.
Dallas County taxes and fees
Property taxes are prorated at closing, with sellers paying through the day of closing. If you have a mortgage, your lender will likely collect an escrow for future tax and insurance payments. Dallas County recording and filing fees vary and are included on your title company’s preliminary statement for your address.
If the property is in an HOA, expect transfer or resale fees and an estoppel certificate. In many Dallas-area communities, sellers often cover these, but the contract can shift that responsibility.
Market shifts and leverage
In a strong seller’s market, sellers are less likely to offer large credits toward buyer closing costs. In a buyer’s market, credits are more common. Your strategy should reflect neighborhood-level data, recent comparable sales, and days on market. Even within Dallas County, leverage can differ from one subdivision to the next.
Smart negotiation strategies
Consider these approaches to meet your goals and stay within loan rules.
- Ask for a seller credit at closing to offset buyer closing costs when cash is tight.
- Balance sale price and credits. A higher price with a seller credit can work, but it must appraise.
- Compare a price reduction to a closing-cost credit. A credit can help cash needs today; a price cut lowers payment for the long run.
- Use repair credits when appropriate. Some repairs must be completed for safety or code, so confirm what your lender will allow as a credit.
What to confirm with your team
Get precise numbers early so you can plan with confidence.
- Confirm your loan program and its seller-concession limit.
- Ask your title company for a preliminary closing statement with Dallas County recording fees and title premiums.
- Decide who pays the owner’s title policy in your deal and whether title fees are split.
- Compare lender credits against permanent rate buydowns and long-term cost.
- Verify HOA transfer and estoppel fees and who will cover them.
- Factor commissions into your net sheet if you’re selling.
- Confirm wiring instructions by phone using known numbers to avoid fraud.
Get a tailored estimate
Every Dallas transaction is unique. The fastest way to get clear numbers is to combine your lender’s Loan Estimate with a title company’s preliminary statement and your signed contract. If you want help modeling price vs. credit scenarios, or you need a net sheet before you list, our team can walk you through it step by step.
Ready to get specific about your closing costs in Dallas? Connect with The Tomlin Team Real Estate Group to review your goals, run the numbers, and plan your best path to closing.
FAQs
Who typically pays closing costs in Dallas, Texas?
- In Texas, sellers commonly pay the owner’s title policy, commissions, tax proration, and HOA transfer fees, while buyers usually cover lender fees, appraisal, lender’s title policy, escrows, and most recording.
Can a Dallas seller pay all my closing costs?
- Sellers can pay buyer costs up to loan-program limits and as agreed in the contract, but exact caps vary by FHA, VA, and conventional guidelines.
How much are buyer closing costs in Dallas?
- Excluding the down payment, buyers commonly see about 2 to 5 percent of the purchase price, depending on lender fees, rate choices, and required prepaids.
Who pays for title insurance in Texas?
- By custom, the seller pays the owner’s title policy and the buyer pays the lender’s policy, though this can be negotiated in the contract.
Who pays for the survey in Dallas County?
- The survey is negotiable; buyers often pay unless the seller provides a recent survey acceptable to the lender and title company.
Does Texas charge a real estate transfer tax?
- No, Texas does not charge a state or local real estate transfer tax; expect normal recording and title-related fees instead.
What HOA fees should I expect at closing?
- Many Dallas-area HOAs charge transfer or resale fees and an estoppel certificate; these are often seller-paid by local custom but can be negotiated.
When will I see my final numbers before closing?
- Your lender must provide a Closing Disclosure at least three business days before closing, showing final credits, fees, and cash to close.
