Moving between Houston and Greater Nashville and unsure what closing costs look like in each state? You are not alone. Even seasoned homeowners are surprised by how Texas and Tennessee split certain fees and how those choices affect negotiation and net proceeds. In this guide, you will get a clear, side-by-side breakdown of typical line items, who usually pays them, realistic ranges, and how to use those numbers to shape a winning offer or a confident list price. Let’s dive in.
Closing costs at a glance
Closing costs include a mix of lender fees, third-party services, title and escrow charges, government recording fees, and prepaid items. The big picture is consistent across states, but who pays and the exact amounts vary by market.
- Lender fees: origination, application, discount points
- Third-party fees: appraisal, inspection, survey
- Title costs: title search, lender’s title policy, owner’s title policy
- Escrow or settlement fees: title company or closing attorney fees
- Recording and government fees: deed and mortgage recording
- Prepaids and prorations: property taxes, prepaid interest, homeowner’s insurance, HOA dues
- Seller items: commission, agreed repairs, seller credits
For a national overview of typical buyer ranges and fee types, review the CFPB’s consumer guide to closing costs, which outlines common charges and what to expect throughout the process. You can start with the CFPB’s overview of closing costs.
Typical buyer and seller totals
- Buyers: Commonly 2–5 percent of the purchase price in closing costs, excluding the down payment. This range captures lender fees, appraisal, title and recording fees, and prepaids. The CFPB provides this as a national rule of thumb.
- Sellers: Often 6–10 percent of the sale price all-in, with most of that tied to real estate commission and owner’s title policy or other seller-side costs where customary. National reports from the National Association of REALTORS reflect typical combined commission near 5–6 percent, split between listing and buyer brokers.
Who usually pays in Houston vs Greater Nashville
Local custom matters. Your purchase contract controls the final allocation, and practices shift by county and even neighborhood. Always confirm with your lender and title company or closing attorney.
Houston and Harris County, Texas
- Closing structure: Title companies commonly manage escrow, title, and settlement. Title insurance premiums are based on a state-regulated rate schedule administered by the Texas Department of Insurance. You can verify rate structure basics through the Texas Department of Insurance.
- Owner’s title policy: In many Houston-area transactions, it is customary for the seller to pay for the owner’s title policy. This is a meaningful line item that affects seller net proceeds. Market practice can change, so confirm with your title company.
- Transfer taxes: Texas does not have a state real estate transfer tax. Expect standard recording fees and clerical charges instead. You can review general state practices and consumer protections through the Texas Real Estate Commission.
- Property tax timing: Taxes are billed annually with prorations at closing. Harris County specifics on records and processes can be checked with the Harris County Clerk and the Harris County Appraisal District.
Customary buyer-paid items in Houston often include: lender fees and points, appraisal, lender’s title policy, credit and underwriting fees, escrow or settlement portions, buyer’s share of recording, and prepaids. Customary seller-paid items often include: commission, owner’s title policy, seller-side closing fees, lien and mortgage payoffs, and prorations.
Greater Nashville, Tennessee
- Closing structure: Both title companies and closing attorneys are used in Tennessee, with attorney involvement more common in some counties. Your purchase contract and local custom determine who pays which fees.
- Owner’s title policy: The customary payor varies by county and market conditions. In some Tennessee transactions the buyer pays, in others the seller pays. Confirm practice for your specific county in Greater Nashville with your title company or your agent. The Tennessee REALTORS association is a helpful starting point for statewide context.
- Transfer and recording taxes: Tennessee recording and documentary fees apply by statute and county. Exact amounts and payor customs differ by county, so confirm with your title company or closing attorney.
Customary buyer-paid items in Greater Nashville typically include: lender fees and points, appraisal, lender’s title policy, closing or attorney fees where buyer customarily pays, buyer’s share of recording, and prepaids. Customary seller-paid items include: commission, seller-side closing or attorney fees, lien and mortgage payoffs, and prorations. Depending on county custom, the owner’s title policy may be paid by buyer or seller.
Budget ranges you can plan around
While every transaction is unique, these line-item ranges are common in both Texas and Tennessee.
- Loan origination and lender fees: about 0.5–1.0 percent of the loan amount, sometimes charged as flat fees.
- Discount points: 0–2 percent of loan amount if you buy down your rate.
- Appraisal: roughly 400 to 1,000 dollars or more, based on property type and complexity.
- Credit, underwriting, and processing fees: often 30 to 600 dollars combined.
- Title insurance premiums: based on purchase price and loan amount under each state’s title rate schedule. Texas uses a regulated schedule via the Texas Department of Insurance. Tennessee premiums follow insurer rate filings and market norms.
- Recording fees: generally in the low hundreds.
- Prepaids and prorations: property tax proration, prepaid interest, homeowner’s insurance, and HOA dues vary by timing and policy.
- Commission: typically the largest seller expense. National averages cited by NAR place combined commission near 5–6 percent, split between listing and buyer brokers, subject to your listing agreement.
Example on an 800,000 dollar home
Use this to gauge order-of-magnitude impacts. Your actual statement will list exact fees.
- Buyer closing costs at 2.0–3.0 percent: about 16,000 to 24,000 dollars
- Seller commission at 5.5 percent: about 44,000 dollars
- Seller title and closing costs at 1.0–1.5 percent: about 8,000 to 12,000 dollars
- Total seller costs: about 6.5–7.0 percent, or roughly 52,000 to 56,000 dollars
- Estimated net proceeds before mortgage payoff and prorations: about 744,000 to 748,000 dollars
How TX vs TN custom can shift your bottom line
Two items often create the biggest differences as you move between Houston and Greater Nashville: the owner’s title policy and closing or attorney fee allocation.
- Owner’s title policy: If a Houston seller pays it but a Nashville buyer would pay it on your next purchase, that cost shifts thousands of dollars from seller to buyer. On higher price points, this change can be meaningful.
- Closing or attorney fees: If your Tennessee county uses a closing attorney and the buyer customarily pays that fee, the buyer’s cash to close may be slightly higher than in a Texas title-company structure. If the fee is split or paid by the seller, the seller’s net changes accordingly.
- Transfer taxes and recording: Texas has no state real estate transfer tax. Tennessee counties apply recording and documentary fees. Ask your title company or attorney for the current schedule applicable to your county and transaction type.
Offer and net-proceeds strategy you can use today
Small shifts in who pays what can strengthen your position without overpaying.
For buyers
- Plan for 2–5 percent in closing costs beyond your down payment. A conservative pre-approval that includes these costs creates buffer for surprises. See the CFPB for a plain-language overview of typical buyer fees.
- If you need help with closing costs, consider a seller credit. Loan programs cap credits, which can include closing costs and prepaids. Common caps include FHA up to 6 percent, VA up to 4 percent, and conventional limits that vary by down payment. Ask your lender for your exact limit.
- Align credits with local custom. If you enter a county where buyers usually pay the owner’s title policy, plan your offer price and credit request accordingly.
For sellers
- In Houston, budget for the owner’s title policy if that is the prevailing custom. In Greater Nashville, verify the local payor before you price. The difference can change your net proceeds by several thousand dollars.
- Compare a price adjustment vs a closing-cost credit. A credit reduces your net dollar for dollar. A price increase paired with a buyer credit can work if the appraisal supports the higher contract price, but it can also raise the buyer’s loan amount and monthly payment.
- Know your numbers before you list. A net sheet that accounts for commission, title policy, closing fees, prorations, and mortgage payoff will help you set a firm pricing and negotiation plan. The Texas Real Estate Commission and Tennessee REALTORS provide general guidance for state practices, and your title company can prepare a precise estimate.
Checklist before you write or accept an offer
Use this quick list to avoid last-minute surprises.
- Request a buyer or seller closing estimate from the local title company or closing attorney for your price point and property type.
- Confirm who customarily pays for the owner’s title policy in your specific county and price bracket.
- Ask your lender for a fees worksheet that includes a realistic appraisal cost, points if any, and a rate-lock that matches your timeline.
- Verify recording and county fees with the clerk in your closing county. For Houston, consult the Harris County Clerk. For tax-proration context, check the Harris County Appraisal District and your Tennessee county’s appraisal site.
- If timing matters for a relocation, confirm typical contract-to-close windows in your area and the cost of extended rate locks.
Who to involve early
- Mortgage lender or broker for loan fees, program credit limits, and timelines
- Local title company and escrow officer for title premiums and closing fee allocation
- Closing attorney if your Tennessee county uses attorneys for settlement
- County clerk or recorder for recording fees and procedures
- Your agent to align local custom with your negotiation plan and contract language
Final thought
Closing costs are not just paperwork. They are a lever you can use to keep your cash-to-close realistic, protect appraisal outcomes, and preserve your bottom line when you sell. A clear estimate, matched to local custom, gives you the confidence to move fast and negotiate well.
If you are relocating between Houston and Greater Nashville and want a precise, county-level cost map for your situation, connect with Amy McDaniel to review your numbers and strategy before you write or accept an offer.
FAQs
What are typical buyer closing costs in Texas and Tennessee?
- Buyers commonly pay about 2–5 percent of the purchase price for closing costs, excluding the down payment, with exact amounts driven by lender fees, appraisal, title charges, recording, and prepaids.
Who pays the owner’s title policy in Houston vs Greater Nashville?
- In many Houston-area transactions, sellers customarily pay the owner’s policy; in Greater Nashville the payor varies by county and current market custom, so confirm with your title company or closing attorney.
Does Texas charge a real estate transfer tax on home sales?
- Texas does not have a state real estate transfer tax, though standard recording and administrative fees apply; verify the exact fee schedule with your title company and the county clerk.
How much seller credit can buyers receive for closing costs?
- Common caps include FHA up to 6 percent, VA up to 4 percent, and conventional limits that depend on your down payment; ask your lender for your program-specific limit.
How do property tax prorations work in Harris County and Tennessee?
- Taxes are prorated between buyer and seller based on the closing date and local billing cycles, with details set by contract; for Houston, review records with the Harris County Appraisal District and confirm the proration method with your title company.
