Understanding Closing Costs in Montgomery County, TX Real Estate
- Becca Ellis
- Jun 19
- 3 min read
Buying or selling a home in Montgomery County, Texas, involves more than just the listing price. One of the most important—and often misunderstood—parts of the process is closing costs. Here’s what buyers and sellers need to know about closing costs in Montgomery County, TX.
What Are Closing Costs?
Closing costs are the fees and expenses, beyond the property price, that buyers and sellers must pay at the completion of a real estate transaction. These costs cover necessary services like title searches, insurance, taxes, and lender fees, ensuring that the property transfer is legal and secure15.
Typical Closing Costs in Montgomery County, TX
For Buyers
In Montgomery County, buyers can expect closing costs to average about 1.79% of the median home value, which is around $4,222 for a median home price of $235,8006.
Across Texas, buyer closing costs generally range from 2% to 5% of the home’s purchase price, depending on the property and loan details5.
Common buyer costs include:
Loan origination fees
Appraisal and inspection fees
Title insurance (lender’s policy)
Escrow fees
Prepaid property taxes and homeowner’s insurance
Recording fees
It’s customary in Texas for sellers to help pay some of the buyer’s closing costs, such as the survey and owner’s title insurance, which can help reduce the buyer’s out-of-pocket expenses5.
For Sellers
Sellers in Texas typically pay about 3.49% of the home’s sale price in closing costs, not including real estate agent commissions2.
The largest seller expense is usually the real estate commission, averaging 5.76% of the sale price in Texas2.
Seller closing costs may include:
Real estate agent commissions (often split between buyer’s and seller’s agents)
Title service fees
Owner’s title insurance
Prorated property taxes
Recording fees
HOA fees (if applicable)
Attorney fees (optional in Texas)2
Who Pays What?
Sellers: Typically cover the real estate commission, owner’s title insurance, and prorated property taxes, among other fees.
Buyers: Usually pay for lender’s title insurance, loan-related fees, appraisal, and prepaid items like taxes and insurance.
Negotiation: In competitive markets, sellers may offer to pay a portion of the buyer’s closing costs as an incentive25.
How Much Should You Budget?
For a median-priced home in Montgomery County ($235,800), average closing costs are about $4,222, or 1.79% of the home’s value6.
For sellers, total costs (including commissions) can add up to about 9% of the sale price, so it’s important to factor these into your net proceeds2.
Buyers should plan for 2–5% of the purchase price, but may pay less if the seller covers some fees5.
Final Tips
Get Estimates Early: Request a detailed closing cost estimate from your lender or real estate agent early in the process.
Negotiate: Some closing costs are negotiable, especially in a buyer’s market.
Consult Local Experts: Fees can vary based on the property, location, and terms of the sale, so work with a local agent or settlement company for the most accurate breakdown3.
Understanding closing costs in Montgomery County, TX, helps buyers and sellers avoid surprises and make informed decisions during one of life’s biggest transactions. Plan ahead, ask questions, and work with trusted professionals to ensure a smooth closing experience.
Comments