david fritsch, Real Estate Pro in Citrus Heights, CA

What are the customary itemized closing costs for a seller in Fort Worth, TX? or What is typicall for a seller to pay?

Asked by david fritsch, Citrus Heights, CA Mon Feb 4, 2013

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Kitellecat, Home Buyer, Fort Worth, TX
Fri Jun 17, 2016
I am not sure whether the Title Co - (Republic Title) - overcharged me. There is an amount of $1255.29 for "city taxes. This is NOT property tax. I see that they have also charged me for the remaining half year payment of property taxes which matches the amount I had figured upon.

I am questioning this other amount of "city taxes" because the full 10 years I lived in that house I never paid and separate city tax! Now I feel that the title co has made up fees in order to fleece me of the full amount I was to receive.

I already had to pay out the realtor commission fees of approx. $8,600!
Selling my house it seemed like everyone had their hand out for some money!
It makes me sick!
0 votes
lerose55, Home Buyer, Sevierville, TN
Mon Sep 29, 2014
I have bought a couple of houses in my life, but now buying a house in TN, I find that $6,700.00 is an awful lot of money for a closing on a 245,000 house. No points involved. Anyone from TN that can answer me?
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Rick DeVoss, Agent, Ft Worth, TX
Mon Feb 4, 2013
To Tom and David:

The question was concerning a seller's typical closing costs here in Fort Worth, Texas. (That includes Dallas, for Tom's benefit.) I would have to say that it has nothing to do with the neighborhood, other than paying homeowner's association dues for the year.

The HUD-1 has two columns, and one is for the seller's charges and fees. Most typical transactions have a buyer paying what is allowed for a VA or FHA loan, and the seller paying all the rest, plus commissions. If the price range of the property is above FHA or VA limits, then a conventional lender will have no restrictions on what a seller can pay. It is customary here for the seller to pay for the title insurance policy and the buyer to pay for the new survey, if one is required. But both of these items are negotiable.

I think in the long run, it is all based on what the buyer is willing to pay for the house. If the buyer pays a fair asking price, then the seller is usually willing to pay for the title policy and attorney's fees, etc. But if the buyer cuts the seller's legs off with a low-ball offer, then the seller can refuse to pay for anything but the Realtor's commission, which is covered under a separate contract at the time of listing. Some folks should remember that if the buyer pays for the title policy, then the buyer gets to select the actual title company to be used for closing. Escrow fees are usually split 50/50.

As to the definition of a "seller's market", I would say it all depends on the neighborhood and the price range. There are many neighborhoods where a buyer has a lot of inventory to choose from; there are other areas where homes only last two weeks. The average length of time for a house to remain in the inventory is two to three months after it is listed in MLS. But the "average" is just a statistic!

For new agents, I would suggest you look back over the last ten HUD-1's that you closed, and get an average per centage for the amount the seller paid in closing costs, and then decide how you will present that info to the next seller during your listing presentation. Don't forget to factor in the tax pro-ration, and HOA dues if not already paid up front for the year. Better to be conservative with the numbers you quote the seller, and then he won't be mad at you at closing. And most will get a refund from their insurance carrier within 30 days after closing. The seller may also get the balance of any escrow account from his lender after closing. These are nice surprises!

Good luck!

Rick DeVoss

ULTRA Real Estate Services
0 votes
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Mon Feb 4, 2013
We are in a sellers market now..... What is normal and customary is evolving.

You would be better off showing a deal to a local agent including neighborhood, ect.

Last year.... sellers would pay a lot of fees. Not so much now.

This is just general info based on what I am seeing on contracts lately. I can't speak to specific neighborhoods, ect
0 votes
Rick DeVoss, Agent, Ft Worth, TX
Mon Feb 4, 2013
David:

I will answer your question for the benefit of any seller in Texas who is reading this blog. I will NOT make the assumption that they are fairly standard "as with all other states" because I do not know the laws and customs of other states, except for the 2 that I am licensed in.

Some of the fees are negotiable, which needs to happen when your Realtor brings you an offer to purchase your house. Some of the fees are "customary", which means the majority of sellers will be paying them. But consider the investor who is snaging a fixer-upper from the little ol' lady who can't afford to even paint it, he will give the seller a fixed price that includes paying ALL closing costs on both sides of the transaction, and this is allowed in Texas.

In all states, there are Federal laws that prohibit some buyers from being charged for certain fees IF they are using any government insured financing, such as FHA or VA loans. In those scenarios, the seller will have to pay the fees. (Check with your title company when you get an offer.)

Since most of the fees are a fixed dollar amount, the total does not vary too much according to the sales price, but consideration should be made for the range that the price is in. The highest cost for a seller, not counting Realtor's commission, is the Title Policy. These rates are established by the state insurance board. You can use a 1% rule of thumb if you wish, but it is usually a bit lower than that. (See a rate card at your title company.) As the other Realtors on here have said, we really should not count "taxes" for the year as a closing cost. However, the seller MUST be prepared to pay his pro-rated share of taxes at closing.

The average price range around this general area runs from $150,000 to $200,000 and on up. In that range, my rule of thumb for sellers to use is to calculate 2% of the sales price, plus the amount of the commission you agreed to pay when you signed the lisiting agreement with your Broker. Then add on the pro-rated taxes for the number of months to closing, and any homeowner's association dues, or late fees. In other words, all of Mr. Seller's accounts have to be paid up to date when the title changes hands.

For seller's of lower priced properties, the total may be slightly higher than 2%, but I have never missed it by much in 33 years of going to closings with my clients. I have noticed a recent trend for third-party agencies to slowly raise their fees, so always check with your title company for an up-to-date quote. In Texas, all closings usually take place at a title company which is under the auspices of the State Insurance Board. If anyone out there can add to or correct anything I just said for our California brothern, please do.

Best of luck on YOUR next closing!

Rick DeVoss

ULTRA Real Estate Services

817-300-6121

RickDeVoss@Realtor.com
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0 votes
Dallas Texas, Agent, Dallas, TN
Mon Feb 4, 2013
Fairly standard as with all other states.

1. Depends on sales price
2. My rule of thumb IF less than $500K anticipate approx. $5K
3. Realtor fees (buyer/listing) agent
4. Property tax if not paid or escrowed
5. Mortgage pay off

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com

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0 votes
Debbie Scri…, Agent, Weatherford, TX
Mon Feb 4, 2013
Depending on the price you can usually count on approx 4% and then add commission. This varies during the year because of taxes. If they are paying taxes and insurance into an escrow acct. they will get that back several weeks after closing.
0 votes
Deb Jones, Agent, Southlake, TX
Mon Feb 4, 2013
I would be happy to send you a seller's net sheet to show you typical closing costs that are involved in selling a home here. Please send me your email address and I will send it to you. debj@debjrealestate.com Thanks!
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