Dallas Closing Costs: Who Pays What?

Wondering who pays what at the closing table in Dallas? If you are buying or selling, the line items can feel overwhelming and the totals can be hard to predict. You want a clear, local breakdown so you can budget with confidence and negotiate smart. This guide explains common Dallas closing costs, who usually pays them, what is negotiable, and how to estimate your bottom line. Let’s dive in.

Quick overview: Dallas closing basics

Texas does not have a state real estate transfer tax, which removes a cost you might see in other states. Title companies handle escrow and settlement in Texas, and many details follow the Texas Real Estate Commission contract, which allows the parties to negotiate how fees are allocated. In the Dallas area, it is customary for sellers to pay for the owner’s title insurance policy, and sellers often select the title company, though both can be negotiated in the contract. Property taxes and HOA dues are usually prorated at closing so each party pays for the time they own the home.

Buyer closing costs in Dallas

Buyers typically cover lender-related charges, third-party reports, prepaids, and government fees. Your exact costs depend on your loan, price point, and what you negotiate.

Common buyer line items

• Loan origination, processing, and underwriting fees: usually the buyer’s cost. These can range from a few hundred dollars to a few thousand dollars or about 0.5 to 1 percent of the loan amount, especially if you choose to pay points.
• Discount points: optional prepaid interest to lower your rate. Each point equals 1 percent of the loan amount.
• Appraisal: typically required by the lender and paid by the buyer. Expect about $400 to $800 depending on the property.
• Credit report: usually a small fee paid by the buyer.
• Home inspection and specialized inspections: buyers usually order and pay for these. A general inspection often runs $300 to $600, with additional costs for items like foundation, roof, or HVAC.
• Survey: depends on the contract and lender requirements. If the seller does not provide an acceptable recent survey, the buyer often pays for a new one, commonly $300 to $700.
• Title-related fees: buyers typically pay the lender’s title insurance policy. Escrow or closing fees are often split, but practices vary and are negotiable.
• Recording fees: buyers typically pay to record the deed of trust and other loan documents. Exact totals vary by county and document count.
• Property tax prorations and escrow: taxes are prorated at closing. If the seller prepaid taxes, you will reimburse the seller for the period after closing. Your lender will also set up a tax and insurance escrow, often collecting 2 to 3 months of deposits.
• Homeowners insurance: the first year’s premium or an initial escrow deposit is usually due at closing for financed purchases.
• HOA transfer and move-in fees: negotiable. Buyers often pay move-in or setup fees depending on the HOA.
• Flood determination and related lender fees: typically paid by the buyer.
• MUD or special district-related certificates or forms: fees can fall to either party depending on the contract and local practice.

Buyers using financing can expect total closing costs and prepaids of roughly 2 to 5 percent of the purchase price in many Dallas transactions. Your lender’s Loan Estimate will refine this number once you are under application.

Seller closing costs in Dallas

Sellers usually cover commissions, the owner’s title policy, prorations, and any agreed concessions. Your net proceeds will also reflect the payoff of any existing loan and liens.

Common seller line items

• Real estate commissions: paid from the seller’s proceeds unless otherwise negotiated. In the Dallas area, the combined commission often falls around 5 to 6 percent of the sale price, though all commissions are negotiable.
• Owner’s title insurance policy: customarily paid by the seller in Texas. Rates are regulated and tied to the purchase price.
• Title, escrow, and closing fees: often split between buyer and seller, but this is negotiable and varies by title company.
• Recording and payoff fees: sellers typically pay to record releases of any mortgages and to obtain payoff statements.
• Prorated property taxes and HOA dues: sellers are responsible for their portion through the closing date. Amounts are prorated per the contract.
• Repairs and credits: any repairs or credits negotiated with the buyer are paid by the seller, often at closing.
• Home warranty: sometimes offered by the seller as an incentive. This is negotiable.
• MUD and special district items: any required certificates or assessments appear on the settlement statement and may be the seller’s responsibility, depending on the contract.

With commissions included, sellers often see total costs of about 6 to 10 percent of the sale price before loan payoff. Your title company’s preliminary settlement statement will provide a clearer picture once you have a contract.

What is negotiable

Many closing costs are negotiable in Texas and the Dallas area. Your contract sets the rules for your specific deal.

• Owner’s title policy: customarily a seller cost, but it can be shifted to the buyer if both parties agree.
• Escrow or closing fee split: often shared, but negotiable.
• Survey: if the seller cannot provide a recent acceptable survey, the parties can negotiate who pays for a new one.
• HOA transfer and move-in fees: negotiable and governed by HOA rules and the contract.
• Seller concessions: sellers can credit buyers for closing costs, rate buydowns, or repairs. Mortgage programs limit how much the seller can contribute. FHA has historically allowed up to 6 percent of the sale price for certain costs, while conventional limits depend on down payment and can range from about 3 to 9 percent in some cases. VA and USDA have their own rules. Always confirm current limits with your lender.

Dallas taxes and special districts

Many Dallas-area suburbs use Municipal Utility Districts and other special districts. These create separate assessments that affect annual carrying costs and can require certificates or transfer items at closing. Texas homestead exemptions do not transfer to buyers, so you will need to apply for your exemption after you close to impact future tax bills. Property taxes are assessed and billed on a schedule, and prorations at closing may use prior-year numbers or estimates as allowed by the contract.

Estimate your bottom line

Follow a simple process to estimate your total before you list or write an offer.

For buyers

1. Start with your price and loan amount. Ask your lender for a Loan Estimate to itemize lender fees, points, and prepaids.
2. Add third-party costs like appraisal, inspections, survey, title fees, and recording charges.
3. Include initial escrows for taxes and insurance, often 2 to 3 months each, plus the first year of homeowners insurance if your lender requires it.
4. If you negotiated seller credits, subtract those from your total cash to close.

For sellers

1. Multiply your expected sale price by the agreed commission rate to estimate the largest cost.
2. Add the owner’s title policy premium and your share of title or escrow fees.
3. Add prorated property taxes, HOA dues or payoffs, and any agreed credits or repairs.
4. Subtract your mortgage payoff and liens to see your estimated net proceeds.

Simple examples

• Example A: $300,000 financed purchase. Buyers often see 2 to 4 percent in closing costs and prepaids, or about $6,000 to $12,000 depending on lender fees, escrow deposits, and points. Sellers may see 6 to 8 percent, or about $18,000 to $24,000 including commission plus typical title and prorations.
• Example B: $500,000 cash purchase. Buyers avoid lender fees and might pay roughly 0.5 to 1.5 percent for title, recording, inspections, and similar items. Sellers still should expect about 5 to 6 percent or more when factoring commission, title, and prorations.

Practical tips to stay on budget

• Get your lender’s Loan Estimate early so you can compare scenarios with and without discount points.
• Confirm who pays for the owner’s title policy, survey, and HOA transfer fees in your offer.
• Ask about seller concessions for closing costs or a rate buydown, then confirm program limits with your lender.
• If you are a seller with a recent acceptable survey, providing it can save the buyer a cost line item and smooth underwriting.
• Review special district and HOA documents early so fees do not surprise you at closing.

Ready for local guidance?

Every transaction is unique, and the Dallas area has its own customs that can impact your final number. If you want a clear estimate tailored to your address, price point, and loan type, we are here to help. Reach out and we can walk you through a buyer cash-to-close plan or a seller net sheet before you start touring or prepping your home. Connect with the Cardoza Group, Inc to get started today.

FAQs

In Dallas, who usually picks the title company?

• By local custom the seller often selects the title company, but the purchase contract can name a different title company if both parties agree.

Do sellers in Texas always pay the owner’s title policy?

• It is customary for sellers to pay for the owner’s title policy in Texas, but this is negotiable and can be shifted in the contract.

How much should a Dallas buyer budget for closing costs on a loan?

• Many financed buyers in Texas budget about 2 to 5 percent of the purchase price for closing costs and prepaids, depending on the loan and escrow needs.

How much should a Dallas seller budget for closing costs?

• Sellers often plan for about 6 to 10 percent of the sale price including commission, the owner’s title policy, prorations, and typical fees before loan payoff.

Can the seller cover the buyer’s closing costs?

• Yes, through seller concessions negotiated in the contract. Mortgage programs set limits on how much sellers can contribute, so confirm with your lender.

Are there real estate transfer taxes in Texas?

• No. Texas does not have a state real estate transfer tax, though you will still see title, escrow, recording, and other standard fees.

How are property taxes handled at closing in Dallas?

• Taxes are prorated so each party pays for the time they own the home. Because bills are issued on a set schedule, closing statements may use prior-year or estimated amounts per the contract.