Sticker shock at closing is never fun. If you are buying or selling a home in San Marcos, you want to know what fees to expect long before you sit down at the title office. The good news is most closing costs in Texas follow clear patterns, and many items are negotiable.
In this guide, you will learn what typical buyers and sellers pay in Hays County, how title and tax prorations work locally, and simple ways to reduce or plan for your costs. You will also see where the timeline and disclosures fit in, so there are no surprises. Let’s dive in.
What closing costs cover in Texas
Closing costs are the extra fees and prepaid items required to complete a home sale on top of the price. They include lender charges, title and recording fees, inspections, surveys, and prorations for taxes and HOA dues. Sellers also pay for commissions, mortgage payoffs, and often the owner’s title policy.
In Texas, many items are negotiable. Local custom in our area is that the seller pays the owner’s title insurance policy, while the buyer pays the lender’s title policy and most loan-related fees. You will see estimates early in the process, then a final disclosure before closing.
What buyers typically pay in San Marcos
Most financed buyers in San Marcos can expect total closing costs to land around 2% to 5% of the purchase price, not including the down payment. Your exact number depends on your loan type, lender fees, the closing date, and negotiated credits.
Loan-related costs
- Loan origination or lender fee, often 0.5% to 1.5% of the loan amount
- Discount points if you choose to buy down your rate, typically 0% to 2% of the loan amount
- Underwriting and processing, commonly $300 to $1,000
- Appraisal, usually $300 to $700 for a single-family home
- Credit report, typically under $50 to $100
- Program-specific costs, such as FHA up-front mortgage insurance or the VA funding fee for eligible borrowers
Third-party and prepaids
- Title charges: lender’s title policy, plus a portion of the closing or escrow fee
- Survey if needed, about $300 to $1,000 depending on property
- Inspections, such as home, termite/WDI, roof, HVAC, or septic, which can total $300 to $1,200 or more
- Recording fees with Hays County, usually modest per document
- Escrows to pre-fund taxes and insurance, often 2 to 6 months depending on timing
- Prepaid interest based on your closing date
- HOA transfer or move-in fees when the property is in an association
Typical buyer total
For planning, keep the 2% to 5% rule of thumb in mind. Your lender will issue a Loan Estimate soon after application and a Closing Disclosure at least three business days before closing so you can review details line by line.
What sellers typically pay in San Marcos
Sellers in Hays County have three main buckets of closing expenses: commissions, title and closing fees, and prorations or payoffs. Your net proceeds are the sale price minus these items.
Commissions
Listing and buyer agent commissions are the largest seller expense and are negotiated in your listing agreement. In many markets, total commissions commonly range around 5% to 6% of the sale price, although terms vary by transaction.
Title, fees, and prorations
- Owner’s title insurance premium, which the seller typically pays in Texas
- A share of the title company’s closing or escrow fee
- Recording or payoff-related fees for releasing the seller’s mortgage
- Property tax and HOA prorations based on the closing date
Estimating net proceeds
A practical way to plan is to request a seller’s net sheet early. That estimate will factor in your expected sale price, commissions, title premium, tax proration, any HOA fees, and your mortgage payoff to show a realistic bottom line.
San Marcos and Hays County specifics
Local customs and tax timing play a big role in how your final numbers look. Here are the San Marcos items to watch.
Title custom and closing location
In Texas, sellers commonly pay for the owner’s title insurance policy. Buyers usually pay the lender’s policy and many loan-related fees. Closings are handled by title companies and may occur at a local title office, an attorney’s office, or remotely when allowed. Practices can vary by company, so it pays to request fee quotes early.
Property taxes and proration
Hays County properties are subject to multiple taxing entities, which can make property taxes a significant line item. At closing, taxes are prorated based on the closing date and the most recent available tax data. Confirm the current assessed value and any exemptions with the Hays County Appraisal District, and review billing timelines with the Hays County Tax Office so you understand how tax bills will be handled after closing.
HOAs and municipal charges
Many San Marcos neighborhoods have HOAs. Expect prorated dues, an HOA transfer or estoppel fee, and any community-specific move-in costs. These fees can add several hundred dollars depending on the association.
No transfer tax in Texas
Texas does not impose a state real estate transfer tax. You will still see standard county recording fees, which are generally modest.
How costs are disclosed and paid
You will receive fee estimates early, then final numbers before closing. Understanding the timeline keeps transactions on track.
Key documents and timing
- Loan Estimate: Your lender must deliver this within three business days of application. It outlines estimated closing costs.
- Closing Disclosure: You must receive this at least three business days before closing for most consumer mortgages. Review it carefully and ask questions right away.
- Seller settlement statement: Sellers receive a statement that shows payoffs, prorations, and net proceeds.
Ways to pay or reduce costs
- Pay at closing by wire or cashier’s check, as instructed by the title company
- Finance certain costs when allowed, such as FHA up-front mortgage insurance
- Negotiate seller concessions or credits, subject to loan program limits
- Request lender credits in exchange for a slightly higher interest rate
- Shop lenders and third-party providers for competitive fee quotes
Common pitfalls to avoid
- Tax timing surprises. Confirm how the current year’s property taxes will be prorated and who will receive and pay the next bill.
- Wire fraud. Always verify wiring instructions by calling the title company using a known, published phone number. Do not trust last-minute email changes.
- Last-minute loan changes. A change in rate or loan type near the finish line can trigger a new Closing Disclosure and delay your closing date.
Assistance that may help with costs
- State programs: The Texas Department of Housing and Community Affairs and the Texas State Affordable Housing Corporation offer mortgage and down payment assistance programs for qualifying buyers.
- Local initiatives: The City of San Marcos and Hays County may periodically offer community development or housing assistance for eligible buyers. Availability and criteria change, so check current offerings directly with those offices.
- Federal loan options: FHA, VA, and USDA loans have different closing cost rules and allowable seller concessions. Ask your lender how these apply to your situation.
Quick checklist: what to bring to closing
- Government-issued photo ID
- Final wired funds or a cashier’s check, as instructed by the title company
- Your Closing Disclosure and any lender-required documents
- For sellers, keys, garage remotes, and any access codes
The bottom line for San Marcos buyers and sellers
If you are buying in San Marcos, plan for closing costs around 2% to 5% of the purchase price, with specific amounts driven by your loan, escrow setup, and timing. If you are selling, expect commissions plus the owner’s title policy, prorated taxes and HOA items, and payoff-related fees. Many fees are negotiable, and clear, early estimates keep you in control.
If you want a transaction-specific estimate or help negotiating credits, connect with a local team that works Hays County every day. From your first Loan Estimate to the keys or your net sheet, you can move forward with confidence.
Ready to map out your numbers and timeline in San Marcos? Reach out to Four22 Realty Group for a clear plan and local support from contract to close. Start Your Move Today.
FAQs
What percentage of a home’s price are closing costs in San Marcos?
- Buyers typically pay about 2% to 5% of the purchase price in closing costs, while sellers usually pay commissions plus a few additional closing fees.
Who usually pays for title insurance in Texas home sales?
- It is customary for the seller to pay the owner’s title insurance policy, while the buyer pays the lender’s policy and some title or escrow fees, although terms are negotiable.
Does Texas charge a real estate transfer tax at closing?
- No, Texas does not have a state real estate transfer tax, but standard county recording fees and charges still apply.
How are property taxes handled at closing in Hays County?
- Taxes are prorated based on the closing date using the most recent tax year data, with final billing handled through the Hays County Tax Office schedule.
Can a buyer roll closing costs into the loan?
- Some costs can be financed depending on the loan program, and lenders may offer credits in exchange for a higher rate; ask your lender what is allowed for your loan type.
What documents will show my final closing costs?
- Buyers receive a Closing Disclosure at least three business days before closing, and sellers receive a settlement statement showing payoffs, prorations, and net proceeds.
