Are you budgeting for a home purchase or sale in Georgetown and wondering what the final number at the closing table will look like? You are not alone. Closing costs can feel confusing, especially with local items like MUDs, HOAs, and tax proration in Williamson County. In this guide, you will learn what these costs are, who typically pays them in Texas, how local fees work, and how to estimate your total so you can plan with confidence. Let’s dive in.
What closing costs cover
Closing costs are the third-party fees, taxes, prorations, and prepaid items needed to complete a real estate transaction beyond your down payment or mortgage payoff. In Texas, many items are negotiable, but some conventions are common. As a rule of thumb, buyers typically spend about 2% to 5% of the purchase price on closing costs, while sellers often spend about 6% to 10% when real estate commissions are included. Your actual total depends on loan type, price, negotiations, taxes, HOA and MUD fees, and title factors.
Who typically pays in Texas
Buyer costs
- Lender charges, such as origination, underwriting, processing, and optional discount points when financing.
- Appraisal fee, credit report, and flood certification.
- Lender’s title insurance policy if you have a mortgage.
- Title and escrow closing fees, which are often paid by the buyer or split, depending on local practice.
- Recording fees for the deed of trust.
- Prepaid items, including the first year of homeowner’s insurance, prepaid interest, and escrowed property taxes.
- Survey or survey waiver if required by the lender and not provided by the seller.
- Home inspections, such as general, pest, or specialty inspections.
- Portions of HOA-related document or transfer fees, depending on the association.
Seller costs
- Real estate broker commissions, typically the largest single cost for sellers.
- Owner’s title insurance policy. In many Texas markets it is customary for the seller to pay this, but it is negotiable.
- Prorated property taxes for the portion of the year the seller owned the home.
- HOA estoppel or transfer fees depending on the association and local custom.
- Payoff of any mortgages, liens, or judgments, plus recording fees to release them.
County and state items
- Transfer taxes: Texas does not have a state real estate transfer tax.
- Recording fees: Charged by the Williamson County Clerk for recording deeds, deeds of trust, and releases. The fee schedule can vary by document and page count.
- Property taxes: Assessed by several taxing entities. Taxes are prorated at closing so the seller pays their share through the day of closing.
Williamson County specifics
Property taxes and proration
Property taxes in Williamson County come from multiple entities, which may include the county, the City of Georgetown, the school district, and sometimes a MUD or hospital district. At closing, taxes are typically prorated so the seller covers their portion for days they owned the home, and the buyer becomes responsible for the remainder of the year. Ask your title company to show tax proration on your settlement statement, and confirm district details with the Williamson County Appraisal District for the specific property.
MUD districts
Many newer communities in and around Georgetown use Municipal Utility Districts to fund water, sewer, and infrastructure. MUD taxes are in addition to city, county, and school taxes, and they can be significant. Before you make an offer, determine whether the property is in a MUD, review the current MUD tax rate and any outstanding bonded indebtedness, and ask about any transfer or assumption fees. You will typically receive this information in the seller’s disclosures or from the MUD entity.
HOAs and neighborhood fees
Many Georgetown neighborhoods have HOAs that charge transfer or estoppel fees at closing. HOA document and estoppel fees vary widely, often in the $100 to $400+ range. Some communities also require capital contributions or reserve fees for buyers. Confirm amounts with the HOA or management company early in your option or contingency period.
Recording fees and title practices
Texas uses a title-company-centered model for closing. Title companies perform the title search, issue title insurance, and handle settlement. Title insurance premiums are regulated by the Texas Department of Insurance, so rates follow a set schedule rather than open market pricing. Local practice often has the seller paying for the owner’s title policy, but this is negotiable. For exact recording costs, ask your title company and check the Williamson County Clerk’s current schedule.
Example: closing costs for a $500,000 home
Below are illustrative ranges to help you gauge magnitude. Your figures will vary based on your loan, negotiations, timing, and the property’s taxes and fees.
Buyer estimate (illustrative)
- Lender fees: 1% to 2% of price = $5,000 to $10,000.
- Appraisal: $450 to $800.
- Credit report, flood cert, tax transcripts: $50 to $200 total.
- Title and escrow fees: $800 to $2,000.
- Lender’s title insurance policy: regulated premium; confirm with the title company for your loan amount.
- Recording fees: $100 to $500.
- Survey: $400 to $1,200 if required.
- Inspections: $300 to $1,000.
- Prepaids and escrows for insurance, interest, and taxes: $1,500 to $5,000.
- Buyer total estimate: roughly $10,000 to $25,000 (about 2% to 5%).
Seller estimate (illustrative)
- Commission: commonly 5% to 6% of sale price = $25,000 to $30,000.
- Owner’s title insurance premium: about $1,500 to $3,000 based on regulated rates and price.
- Recording and payoff fees: $100 to $500.
- Prorated taxes: varies by tax rate and closing date.
- HOA estoppel or transfer fees if applicable: $100 to $400+.
- Seller total including commission: often 6% to 10% of the sale price.
How to lower your closing costs
- Compare lenders. Ask for itemized origination, underwriting, and discount point options, and request lender credits when appropriate.
- Negotiate concessions. You can ask the seller to contribute to your closing costs or pay for the owner’s title policy, subject to loan program limits.
- Time your closing. The day of the month can impact prepaid interest and the size of your initial escrow deposit.
- Compare title and escrow fees. Title insurance premiums are regulated, but settlement and ancillary fees can vary. Ask for a detailed quote from local title companies.
- Review HOA and MUD items early. Knowing potential transfer fees or capital contributions upfront helps you negotiate effectively.
Timeline and checklist
Typical timeline
- Loan application and preapproval with your lender.
- Lender orders appraisal and the title company begins the title search.
- You receive a Closing Disclosure at least 3 business days before closing if you are using a mortgage.
- Final walkthrough, then signing at the title company.
- Funding and recording. Keys are delivered per contract, often after recording.
What to bring to closing
- Valid photo ID for all signers.
- Wired funds or a cashier’s check per the title company’s instructions.
- Any documents your lender or title company requested, such as proof of insurance.
- For sellers: mortgage payoff information and any HOA documents required for the transfer.
Disclosures to review
- Buyers with a loan: the Closing Disclosure, which lists loan terms and final closing costs.
- Sellers: a seller’s closing statement showing payoffs, prorations, and net proceeds.
- Both parties: review title commitments, exceptions, and any HOA or MUD notices.
Avoid common pitfalls
- Title issues and liens. Address surprises early by reviewing the title commitment and curing issues quickly.
- Unplanned MUD or bond assessments. Confirm district status and tax rates for the specific property.
- HOA fees and deadlines. Order HOA docs early to avoid rush fees and delays.
- Wiring fraud. Always verify wire instructions by phone using known contact information for your title company. Do not rely on email alone.
- Tax proration errors. Ask the title company to explain the calculation and verify taxing entities for the property.
Ready to run your numbers?
If you want a property-specific estimate for Georgetown or greater Williamson County, we can walk you through each line item, explain local custom, and help you negotiate the best outcome. Reach out to the Merissa Anderson Group to get a clear, personalized closing-cost breakdown and a plan to move forward with confidence.
FAQs
What are typical buyer closing costs in Georgetown, TX?
- Buyers commonly pay about 2% to 5% of the purchase price, excluding the down payment. Your final number depends on loan type, escrowed taxes and insurance, title and recording fees, and inspections.
Who usually pays for the owner’s title policy in Texas?
- In many Texas markets the seller pays for the owner’s title insurance premium, but it is negotiable in the contract. Confirm the custom for your Georgetown transaction with your agent and title company.
Are there real estate transfer taxes in Texas?
- No. Texas does not impose a state real estate transfer tax, so you will not see a separate state transfer tax line item at closing.
How are property taxes handled at closing in Williamson County?
- Taxes are typically prorated so the seller pays their share through the day of closing and the buyer becomes responsible afterward. Multiple entities may assess taxes, and MUD taxes can apply.
What is a MUD and why does it matter for closing costs?
- A Municipal Utility District funds local infrastructure through additional property taxes. If a home is in a MUD, you should review the current tax rate, any bonded debt, and any transfer or assumption fees that could affect your bottom line.
When will I see my final closing numbers as a buyer?
- If you have a mortgage, you should receive a Closing Disclosure at least 3 business days before closing that details your loan terms and closing costs. Ask your lender and title company to explain any items you do not understand.
