Closing Costs in Texas: What Buyers and Sellers in Wilson County Need to Expect

Closing costs are one of the most consistently misunderstood parts of any real estate transaction, and they surprise buyers and sellers in Wilson County more often than any other single topic.

If you've budgeted carefully for a down payment but haven't accounted for closing costs, you may find yourself short on the day you're supposed to get your keys. If you're selling a property and haven't factored closing costs into your net proceeds calculation, your check at closing will be smaller than you expected.

This guide breaks down exactly what buyers and sellers in Wilson County, Floresville, La Vernia, and South Texas typically pay at closing, so there are no surprises.

James Peterson ALC and Barbara Peterson are broker-owners of United Country Real Estate | Texas Ranch and Home in Floresville, Texas. They walk every buyer and seller through a closing cost estimate before any transaction, so their clients know what to expect from the beginning.

Closing costs are the fees, charges, and prepaid items due at the closing of a real estate transaction, separate from the purchase price and, for buyers, separate from the down payment.

They cover things like:

• Lender origination and processing fees
• Title insurance premiums
• Title company escrow and closing fees
• Property tax prorations
• Homeowner's insurance
• Prepaid interest
• Government recording fees
• Inspection and appraisal costs (typically paid before closing but part of the transaction costs)

Closing costs are paid by both buyers and sellers, but they pay different things.

For buyers in Texas, total closing costs typically run 2–4% of the purchase price, though the exact amount varies based on the loan type, lender, purchase price, and transaction specifics.

On a $350,000 home in Wilson County, that means budgeting $7,000–$14,000 in closing costs beyond the down payment.

Here's a breakdown of what's typically included:

Lender Fees

• Loan origination fee: Charged by the lender for processing and originating the loan. Typically 0.5–1% of the loan amount, though some lenders charge flat fees.
• Discount points: Optional, you can pay points upfront to lower your interest rate. One point equals 1% of the loan amount. This is a buyer election, not a standard cost.
• Appraisal fee: The lender requires an appraisal to confirm the property's value. For standard residential properties in Wilson County, appraisal fees typically run $500–$700. For rural land and ranch properties requiring specialized agricultural appraisers, fees can run $1,000–$2,500+.
• Credit report fee: Typically $25–$75, charged by the lender to pull your credit.
• Flood determination fee: Confirms whether the property is in a FEMA flood zone. Usually under $50.
• Homeowner's insurance first year: Most lenders require a full year of homeowner's insurance paid at closing. Rates vary based on property type, location, and coverage, rural properties with replacement value for structures, fencing, and outbuildings may run $2,000–$5,000+ per year.

Title and Escrow Fees

• Owner's title insurance policy: Protects the buyer against title defects that may arise after closing. In Texas, title insurance premiums are regulated by the state and are based on the purchase price. On a $350,000 purchase, the owner's policy premium is typically around $1,800–$2,200.
• Lender's title insurance policy: Required by virtually all lenders. Separate from the owner's policy, typically a smaller premium because it's based on the loan amount rather than the purchase price.
• Title company escrow/closing fee: The title company's fee for handling the closing, collecting and disbursing funds, coordinating documents, and managing the transaction. Typically $400–$700 in Wilson County.
• Title search: The fee for researching the chain of title to identify any liens, easements, or ownership issues. Usually $150–$300.
• Survey: If a survey is required (which it often is for rural land purchases), the cost depends on the size and complexity of the property. Residential surveys run $500–$1,000; larger land tracts can run $1,500–$4,000+.

Prepaid and Escrow Items

• Prepaid interest: Interest from the closing date to the end of the month. The later in the month you close, the less this costs.
• Property tax escrow: Most lenders require an escrow account for property taxes. You'll prepay a portion of the upcoming year's taxes at closing. This can range from a few hundred dollars to several thousand depending on the property's tax rate and annual tax bill.
• Homeowner's insurance escrow: In addition to the first year's premium paid at closing, lenders typically require a 2-month cushion in escrow.

Government and Recording Fees

• Recording fees: County clerk's fees for recording the deed and deed of trust. Typically $50–$200 in Wilson County.
• Transfer taxes: Texas does not have a real property transfer tax (unlike some other states), which keeps this cost minimal.

Sellers in Texas typically pay more in closing costs than buyers as a percentage of the transaction, primarily because the seller pays the real estate commission.

Total seller closing costs typically run 6–9% of the sale price depending on commission rate and other factors.

On a $350,000 sale, that means the seller should expect to net $350,000 minus approximately $21,000–$31,500 in combined closing costs and commission, before paying off any existing mortgage on the property.

Here's what sellers typically pay:

Real Estate Commission

The largest seller closing cost is the real estate agent commission. In Texas, commissions are negotiable. The total commission (covering both the listing agent and the buyer's agent) has historically been around 5–6% of the sale price, though this has been evolving in the wake of recent industry changes.

On a $350,000 sale at 6% commission: $21,000.

James and Barbara are transparent about commission in every listing conversation, and they help sellers understand what they'll net at various price points before any listing agreement is signed.

Title and Closing Fees

• Seller's portion of title company fees: Sellers typically pay a portion of the title company's escrow and closing fee, often split with the buyer, though this is negotiable.
• Title policy: In Texas, it's customary for the seller to pay for the owner's title insurance policy (the buyer's protection). On a $350,000 sale, this runs approximately $1,800–$2,200.
• Survey: If the property doesn't have a current survey and one is required, the seller may pay for it, or this cost may be negotiated to the buyer.

Property Taxes and Prorations

Property tax proration: Texas property taxes are paid in arrears, meaning taxes for the current year are paid at the end of the year. At closing, the seller pays the buyer a proration credit for the portion of the current year's taxes that accrued while the seller owned the property. This is not an additional tax, it's an adjustment that ensures the buyer doesn't pay taxes for months they didn't own the property.

On a Wilson County property with $2,400/year in property taxes, the proration at a mid-year closing would be approximately $1,200.

Loan Payoff

If you have an existing mortgage on the property, the remaining balance plus any accrued interest must be paid off at closing. This is not technically a "closing cost" but it is a significant reduction in your net proceeds.

Prepayment penalty: Most modern mortgages don't have prepayment penalties, but verify with your lender if your loan is older.

Other Potential Seller Costs

• Seller concessions: If you've agreed to pay a portion of the buyer's closing costs as part of the negotiation, this comes out of your proceeds at closing.
• HOA fees: If the property is in a homeowners association, any outstanding dues, transfer fees, or HOA document fees may be paid at closing.
• Home warranty: If you've agreed to provide a home warranty as part of the sale, the premium is paid at closing. Home warranties typically run $400–$700 for a one-year policy.

For rural land, ranch, and acreage transactions in Wilson County, a few additional cost considerations apply:

• Specialized agricultural appraisal: If the loan requires an appraisal and the property is agricultural, the appraisal must be done by an agricultural-specialized appraiser. These fees run higher than standard residential appraisal fees, $1,000–$2,500+ depending on property size and complexity.
• Survey costs are higher for larger tracts: A boundary survey on 100 acres costs significantly more than on a half-acre residential lot. Budget $1,500–$5,000+ for surveys on larger Wilson County properties.
• Mineral title review: If mineral rights are part of the transaction, either conveying or reserving, a title opinion from a mineral rights attorney may be needed. Fees vary.
• Rollback tax reserves: If there's any rollback tax exposure on ag valuation, the parties may need to escrow funds or make adjustments at closing to address it.

Yes, some of them.

• Seller concessions: Buyers can negotiate for sellers to contribute to closing costs as part of the purchase price negotiation. On a $350,000 purchase, a $5,000 seller concession covers a meaningful portion of buyer closing costs.
• Lender shopping: Lender fees vary. Getting quotes from multiple lenders, including agricultural lenders for rural property, can save hundreds to thousands of dollars in origination costs.
• Title company fees: Some closing fees are negotiable or can be shopped. Ask your agent about title companies they work with in Wilson County and what the fee structure looks like.
• What's not negotiable: Texas title insurance premiums are regulated by the state, you'll pay the same premium for a given purchase price regardless of which title company you use.

On every transaction they represent, James and Barbara provide buyers and sellers with a realistic closing cost estimate before any contract is signed, so there are no surprises at the closing table.

For buyers, that means understanding exactly what you need to bring to closing beyond the down payment, so you're not scrambling to find funds at the last minute.

For sellers, that means knowing your realistic net proceeds before you accept an offer, so you can make informed decisions about price, concessions, and terms with full information.

📞 James: 210-740-1295 📞 Barbara: 210-540-6487 🌐 www.txranchandhome.com 📅 Schedule a Free Consultation

James Peterson ALC & Barbara Peterson are broker-owners of United Country Real Estate | Texas Ranch and Home in Floresville, Texas. Closing cost estimates in this guide are general ranges based on current market conditions in Wilson County. Actual closing costs vary by transaction, always request a specific loan estimate from your lender and a closing cost breakdown from your title company before closing.

Questions about this on a property in Wilson County? Texas Ranch & Home works rural homes and land across Wilson, Atascosa, Gonzales, Guadalupe and Karnes Counties. Call James Peterson ALC at (210) 740-1295 or Barbara Peterson at (210) 540-6487, or send us a message.

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