Recently
released national closing cost data showed that in 2019 average closing costs
remained flat despite an increase in home prices. The average closing costs in
Texas was $3,744 with an average sales price of $274,163.
The average
closing costs in Texas was 1.75 percent of the sales price. That put Texas
ranked 28th in the country for closing costs based on percentage of
sales price.
The closing
cost data, announced by ClosingCorp, calculated the cost of title insurance,
appraisals, settlement fees, recording fees, surveys and transfer taxes. We
don’t have transfer taxes in Texas. If we exclude those transfer taxes, Texas
still ranks 28th in the country.
The states with
the highest average closing costs, excluding taxes, were Washington DC, New
York, Hawaii, and California. That is a reflection of both closing costs and
average sales prices being high. If you look at the highest closing by state
based solely on percentage of sales price, the highest states were Pennsylvania,
Delaware, Washington DC, and Maryland. Their percentage averaged more than
double the closing costs in Texas.
In most states,
consumers can shop around and compare closing costs like they would a mortgage
loan or homeowner insurance. Title insurance rates often vary based on several
factors such as the purchaser’s credit scores or amount of their down payment.
The escrow, legal, and closing fees can even vary from county to county within
a state.
In Texas, the
cost of title insurance is set and regulated by the state. All Texas title
companies are required to charge the same for a title policy. The debate comes
up every few years that Texas title insurance should be unregulated. The
argument is usually that the free market and more competition would help reduce
the cost to the consumer. The Texas Department of Insurance actually lowered
title insurance rates in September 2019. For now, the system seems to be
working well for our state.
[where: 75230]
No comments:
Post a Comment