Closing Costs on a Texas Cash Sale
A cash sale removes several costs entirely. Knowing which ones makes it much easier to compare a direct offer against a listing.
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Send the address, the condition, and when you would like to be done. We will tell you what we can pay and whether listing would do better.
Before you read this
What disappears when there is no lender
A large share of a conventional closing exists because a bank is lending money. Take the loan away and those line items go with it: origination and underwriting fees, the lender’s required appraisal, the lender’s title policy, and the survey the lender would have insisted on.
The time those steps consume disappears too, which is most of why a cash closing can be scheduled around your calendar rather than an underwriter’s.
What a seller still pays
- Payoff of anything secured by the property — mortgage, home equity loan, tax lien, judgment lien, contractor lien. Paid from proceeds at closing.
- Property taxes, prorated. Texas taxes are billed in arrears, so a seller is normally charged for the part of the year they owned the property, credited to the buyer at closing.
- Owner’s title policy, by custom in most Texas markets, at the premium the Texas Department of Insurance sets.
- Escrow or closing fee, often split.
- Recording fees and any release fees for clearing old liens.
- HOA transfer or resale certificate fees, where there is an association.
None of this is fixed by statute. Who pays what is negotiable and belongs in the contract.
What is not a closing cost
Two things get confused with closing costs and should not be.
Agent commission. If you sell directly there is no listing commission, because there is no listing. That is a genuine saving and it is separate from closing costs. If you do list, commission is negotiable and is agreed in the listing agreement.
Repairs and concessions. On a listed sale these usually appear after the inspection, as a repair demand or a price reduction. They are real money and they are easy to leave out when comparing offers, because they arrive later.
What 'we pay all closing costs' really means
You will see this on every cash-buyer site in Lubbock, including situations where it is doing more work than it should.
It normally means the buyer covers the customary seller-side closing costs. It does not mean the buyer pays off your mortgage in addition to the purchase price, absorbs your delinquent taxes on top of the offer, or hands you the full offer figure with nothing deducted. Liens secured by the property come out of the proceeds either way — that is what a lien is.
The only number that matters is what lands in your account. Ask any buyer, us included, for an estimated seller net rather than a headline price, and compare those.
Comparing a cash offer against a listing
The fair comparison is not offer price against likely list price. It is net against net, over the time each takes.
Against a listing, set out: likely sale price, minus commission, minus repairs and concessions after inspection, minus the carrying costs of however many months it takes — mortgage, taxes, insurance, utilities — and the risk that a buyer’s financing falls through. Against a direct sale: the offer, minus whatever closing costs you are actually paying, on a date you choose.
Sometimes the listing wins comfortably. When it does, we say so. It is a smaller world than people think and we would rather be the buyer who told you the truth.
Common questions
What closing costs does a seller pay in a Texas cash sale?
Typically payoff of anything secured by the property, prorated property taxes, the owner's title policy by custom, an escrow or closing fee that is often split, recording and lien release fees, and any HOA transfer fees. Who pays what is negotiable and set in the contract.
Do I pay agent commission if I sell directly?
No. There is no listing commission on a direct sale because there is no listing. That is separate from closing costs and is a real difference when comparing against a listed sale.
Does 'we pay all closing costs' mean I get the full offer amount?
No. It normally means the buyer covers customary seller-side closing costs. Anything secured by the property — your mortgage, delinquent taxes, liens — still comes out of the proceeds. Ask for an estimated seller net rather than a headline number.
How are property taxes handled at a Texas closing?
Texas property taxes are billed in arrears, so they are prorated. The seller is normally charged for the portion of the year they owned the property and that amount is credited to the buyer at closing.
Is a cash offer always worse than listing?
No, but it is often lower on price. A cash offer trades price for speed, certainty, and no repairs. Compare net proceeds against net proceeds, including commission, repairs after inspection, and months of carrying costs — then decide.
A last word on what we are
Want to talk about your situation?
Send the address and the condition. If a direct sale is not your best move, we will say so.