One of the most common questions I hear from buyers and sellers in Brenham and Washington County is: How much will I actually pay at closing? The answer depends on whether you are the buyer or the seller, the price of the home, the type of financing, and a few other factors. But the costs are not mysterious. Once you understand who typically pays what and why, you can plan for them and avoid surprises on closing day.
My name is De Wayne Mortensen II. I am a REALTOR® with Better Homes and Gardens Real Estate Hometown, licensed in Texas (836279) and California (01749107). I have spent more than 20 years helping buyers and sellers in Washington County navigate real estate transactions, from small acreage homes to new construction and complex estate sales. I explain every cost upfront so my clients know exactly where their money is going. Here is what you need to know about closing costs in Texas.
Closing Costs at a Glance
In Texas, closing costs typically work out to the following ranges based on the home's purchase price:
- Buyers typically pay 2% to 5% of the purchase price in closing costs. On a home priced at $300,000 in Brenham, that comes to roughly $6,000 to $15,000 beyond the down payment.
- Sellers typically pay 6% to 10% of the sale price, with real estate commissions making up the largest portion. On a $300,000 sale, seller closing costs generally range from $18,000 to $30,000.
Texas is one of the few states with no state real estate transfer tax, which keeps closing costs somewhat lower than in states like New York or Maryland. But there are still plenty of fees from lenders, title companies, and government entities that add up. The key is knowing which ones apply to you and which can be negotiated.
What Buyers Pay at Closing in Texas
As a home buyer in Texas, your closing costs fall into several categories. Some are one-time fees paid at closing, and others are prepaid expenses that go into an escrow account. Here is a breakdown of the most common buyer closing costs in Brenham and Washington County.
Loan Origination and Lender Fees
Your lender charges various fees to process, underwrite, and fund your loan. These include the loan origination fee (typically 0.5% to 1% of the loan amount), the application fee, the underwriting fee, and the processing fee. Some lenders bundle these into a single origination charge. FHA loans also carry an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, while VA loans have a one-time funding fee that varies based on your down payment and whether it is your first VA loan use.
Third-Party Fees
These are fees paid to third-party service providers, not the lender. They typically include:
- Appraisal fee: $400 to $700, paid to a licensed appraiser who determines the property's market value for the lender. In rural Washington County, appraisals on acreage or properties with wells and septic may cost more due to the additional analysis required.
- Home inspection fee: $300 to $600, though this is typically paid directly to the inspector before closing, not through the title company. Soil, termite, well water, and septic inspections each add their own costs.
- Title search and examination fee: $200 to $400, paid to the title company to research the property's ownership history and identify any liens or title defects.
- Title insurance: This is one of the larger costs. The lender's title insurance policy is required and protects the lender if a title issue arises. The owner's title policy is optional by law but strongly recommended, as it protects you, the buyer. Together, they typically cost $1,500 to $3,000 depending on the purchase price.
- Survey fee: $350 to $800, if the lender requires a new survey of the property boundaries. This is common for rural acreage or properties where the existing survey is outdated.
Prepaid Costs and Escrow Reserves
At closing, you will also prepay certain costs that cover the first few months of homeownership. These include:
- Property taxes: You reimburse the seller for the portion of the year they already paid taxes on but will not own the home. These are prorated at closing.
- Homeowners insurance: You typically pay the first year's premium at closing, plus a few months into escrow.
- Prepaid interest: Interest on your loan from the closing date to the end of that month.
- Escrow reserves: Two to six months of property taxes and insurance held in an escrow account by your lender.
HOA Fees and Transfer Costs
If you are buying a home in a subdivision with a homeowners association in Brenham or Washington County, you will typically pay HOA transfer fees, a prorated share of the current year's HOA dues, and sometimes a moving fee or capital contribution. These can range from a few hundred to over a thousand dollars depending on the association.
What Sellers Pay at Closing in Texas
Seller closing costs are typically higher than buyer costs because the seller pays the real estate commission for both agents. Here is what sellers in Washington County can expect.
Real Estate Commissions
This is the largest single closing cost for sellers. Commissions typically total 5% to 6% of the sale price and are split between the listing agent and the buyer's agent. On a $300,000 home sale in Brenham, that is $15,000 to $18,000. Under the current rules following the NAR settlement, buyer-agent compensation is no longer advertised on the MLS and must be negotiated separately, but it still commonly appears as a seller-paid cost in the offer and closing documents.
Title Policy and Closing Fees
In Texas, it is common for the seller to pay for the owner's title insurance policy (which protects the buyer) and sometimes a portion of the title search and examination. The seller also typically pays the title company's closing fee, the escrow fee, and the cost of preparing the deed and other transfer documents. Together, these title-related costs usually total $1,500 to $3,000.
Prorated Property Taxes
The seller credits the buyer for property taxes already paid for the portion of the year the seller will not own the home. In Washington County, property tax rates are roughly 1.5% to 2% of the assessed value. If your home is valued at $300,000 and you close in August, you receive a credit from the seller for the taxes they prepaid for September through December.
Other Seller Costs
- HOA document preparation and transfer fees: $100 to $500, if the property is in an HOA.
- Recording fees: $30 to $50 to record the deed and release of lien with the Washington County Clerk's Office.
- Release of lien fees: Costs to file lien releases for the seller's existing mortgage.
- Payoff of existing mortgage: Any remaining balance on the seller's mortgage is paid at closing from the sale proceeds.
- Home warranty: Many sellers choose to provide a home warranty to the buyer, typically $400 to $700.
- Attorney fees: While not common for straightforward sales, some sellers in unique situations (estate sales, divorce, complex title issues) retain an attorney, which adds to closing costs.
How Much Will You Pay in Brenham?
To give you a concrete example, let us look at a typical Brenham home sale at the current median price point. As of mid-2026, the median home price in Brenham is around $296,000, while in Washington County it is approximately $298,000.
For a $300,000 home sale in Brenham:
- Buyer closing costs (excluding down payment): Roughly $8,000 to $15,000, depending on loan type and whether you choose an owner's title policy.
- Seller closing costs: Roughly $20,000 to $30,000, with commissions making up the majority. The seller's net proceeds after closing costs and paying off the existing mortgage is typically 80% to 85% of the sale price.
Keep in mind that closing costs vary. A VA loan has different fee structures than a conventional loan. A cash buyer avoids most lender-related fees. A home with acreage in rural Washington County may require additional inspections and surveys that add to the buyer's costs. And seller closing costs depend heavily on the negotiated commission and any concessions offered to the buyer.
Who Can Negotiate Closing Costs?
Many closing costs are negotiable. Here is how it typically works in Washington County transactions.
Seller concessions: A seller can agree to pay some of the buyer's closing costs, often up to 3% to 6% of the purchase price depending on the loan type. This is common in a balanced market where buyers may have less cash available at closing. In Brenham, seller concessions are becoming more frequent as inventory increases and buyers have more negotiating power.
Lender fees: Some lender fees are negotiable, and shopping between lenders can save you thousands. I always recommend that buyers compare loan estimates from at least two or three lenders before choosing one.
Title insurance: Texas has set rates for title insurance, regulated by the Texas Department of Insurance, so the base premium is mostly fixed. However, you can often negotiate who pays for which policy (buyer or seller) during the offer process.
Real estate commission: Commission rates are negotiable between the seller and their listing agent. I am transparent about my fees and will explain exactly what services are provided and what the commission covers before we sign a listing agreement.
The Closing Disclosure: Your Final Statement
Three business days before closing, your lender provides a Closing Disclosure (CD) that itemizes every fee, credit, and payment in the transaction. Both buyers and sellers should review their CD carefully. The seller receives a separate settlement statement from the title company.
I always review the Closing Disclosure with my clients before signing so they understand every line item. If something looks wrong or unexpected, there is time to ask questions before closing day. It is one of the most important documents in the transaction, and it should not be rushed.
Common Questions About Closing Costs in Texas
Can I roll closing costs into my loan?
Some closing costs can be rolled into the loan through lender credits or a higher interest rate, but typically only certain fees can be financed. In general, the purchase price plus financed costs cannot exceed the appraised value. Talk to your lender about what is possible with your specific loan program.
Does Texas have a transfer tax?
No. Texas is one of the few states with no real estate transfer tax. That is one of the reasons closing costs in Texas are somewhat lower than in states like New York, Maryland, or Pennsylvania, which can charge 1% to 2% of the sale price just in transfer taxes.
How can I reduce my closing costs?
For buyers, getting a no-closing-cost mortgage (where the lender covers costs in exchange for a slightly higher interest rate) can reduce upfront cash. Comparing lenders, asking about lender credits, and negotiating seller concessions are the most effective strategies. For sellers, negotiating the commission rate, handling minor repairs before listing, and pricing the home accurately to avoid prolonged marketing time all help minimize costs.
Do I need an owner's title policy as a buyer?
The lender's title policy is required, but the owner's policy is optional. I strongly recommend it. For a one-time cost of roughly $1,000 to $2,000, it protects you against hidden title defects such as undisclosed heirs, forged deeds, or mistakes in the public record. Given the history of some properties in Washington County, where land may have been passed down through multiple generations without formal probate, an owner's title policy provides valuable peace of mind.
The Bottom Line
Closing costs in Texas are straightforward once you know what to expect. Buyers typically pay 2% to 5% of the purchase price in lender fees, title costs, and prepaid expenses. Sellers typically pay 6% to 10%, with commissions as the largest item. Texas has no transfer tax, which helps keep costs manageable on both sides.
Whether you are buying your first home in Brenham, selling a family property in Washington County, or relocating to Central Texas from out of state, I will walk you through every cost before you commit. There is no fine print and no surprises. I explain how everything works so you can make informed decisions with confidence.
If you want a clear estimate of what your closing costs would look like for a specific property or price range in Brenham or anywhere in Washington County, I am glad to help. There is no pressure and no obligation. Glad to help.
