Closing day should feel like a celebration, not a mystery. If you are buying or selling in Pecos, you have likely heard about “closing costs” and wondered what they actually cover. You want a clear, local breakdown so you can budget with confidence and avoid last‑minute surprises. This guide explains what closing costs include in Pecos and Reeves County, who typically pays what in Texas, and the smart steps that keep your closing smooth. Let’s dive in.
What closing costs mean in Pecos
Closing costs are the fees, taxes, prepaid items, and third‑party charges needed to complete a real estate deal, separate from the purchase price. If you are financing, these appear on your lender’s Closing Disclosure. For cash deals, you will see them on a settlement statement. The Consumer Financial Protection Bureau explains the Closing Disclosure and timing in detail in its guide to closing on a home.
Who pays which costs in Texas depends on local custom and your contract. Buyers usually pay loan‑related charges, appraisals, and inspections. Sellers generally cover broker commissions and may contribute to title costs or concessions, based on negotiation.
As a rough estimate, buyers often spend about 2 to 5 percent of the purchase price in closing costs, and sellers often spend about 6 to 10 percent, mainly due to commissions. These are only estimates. Your Loan Estimate and final Closing Disclosure show your exact figures.
Buyer costs in Pecos
Loan and lender fees
- Origination and processing fees from your lender.
- Underwriting, credit report, and document prep fees.
- Discount points if you choose to buy down your interest rate.
- Mortgage insurance if your loan program requires it.
- Appraisal to confirm value, typically paid by the buyer.
- Flood determination fee. Many West Texas properties are not in flood zones, but lenders still require a check.
Title, escrow, and recording
- Title search and title insurance. The lender’s policy is usually required and often paid by the buyer. The owner’s policy protects your ownership interest and who pays is negotiable in Texas.
- Settlement or escrow fee charged by the title company for handling funds and documents.
- Recording fees to file the deed and, if financed, the deed of trust with the Reeves County Clerk. The Clerk sets these fees, and amounts can change.
- Texas does not have a state real estate transfer tax.
Prepaids and escrows
- First year of homeowner’s insurance, paid at closing.
- Prepaid mortgage interest from funding to your first payment date.
- Initial escrow deposits for future taxes and insurance if your lender requires an escrow account.
Inspections, survey, and rural checks
- General home inspection, termite inspection, and any specialized inspections.
- Survey if your lender or title company requires a current one. Sometimes sellers provide an existing survey.
- For rural or older properties, plan for well and septic inspections or water testing, often buyer paid.
Seller costs in Pecos
Commissions and payoffs
- Broker commissions are usually the largest seller expense and are negotiated in the listing agreement.
- Payoff of any existing mortgages and liens, including any required release fees.
Title and settlement
- Depending on your contract, you may contribute to title costs or pay for the owner’s title policy. Practices vary and are negotiable in Texas.
- Settlement or escrow fees may be split or assigned per the contract.
Taxes, prorations, and concessions
- Property taxes and HOA dues are typically prorated to the closing date so each party pays for their share of the year.
- Any agreed credits to the buyer for closing costs, repairs, or home warranty are reflected on the settlement statement.
Pecos and Reeves County nuances
Mineral rights and oil and gas
Reeves County sits in the Permian Basin. Title work often reviews mineral reservations, existing leases, and surface use agreements. These items can affect use and value. Make sure your contract clarifies what conveys, and request the title commitment early to review any exceptions.
Easements and environmental items
Pipeline easements, access easements, or other recorded agreements can appear in title. In some cases, buyers order additional due diligence for properties near oil and gas activity.
Rural utilities and access
Private wells, septic systems, fencing, and cattle guards are common in rural transactions. Plan for relevant inspections and confirm any shared road or access agreements before closing.
HOA and city utilities
If the property is in an HOA, you may see transfer fees or a resale certificate charge. For properties in town, confirm City of Pecos utility connection or transfer fees for water, sewer, and garbage.
Taxes, title, and Texas rules
Texas property taxes are set by local taxing entities and administered through county offices. Taxes are commonly prorated at closing. For statewide basics, see the Texas Comptroller’s overview of property tax.
Title insurance rates and policy forms are regulated in Texas. You can learn more from the Texas Department of Insurance’s consumer resources at the Texas Department of Insurance. For consumer protection information and contract guidance, the Texas Real Estate Commission is another helpful reference.
Texas does not impose a state real estate transfer tax. You will still see recording fees and standard title and settlement charges.
How to prepare for closing
For buyers
- Request your Loan Estimate early and compare it to your final Closing Disclosure. The CFPB explains the timing and what to review in its guide to closing on a home.
- Confirm appraisal, inspections, survey, and lender underwriting milestones to keep your timeline on track.
- Ask the title company for the title commitment as soon as it is available, and review exceptions like easements, mineral reservations, or HOA restrictions.
- Verify property tax prorations and any seller credits shown on the Closing Disclosure.
- Arrange final closing funds by wire or cashier’s check per the closing agent’s instructions.
For sellers
- Request mortgage payoff letters early so closing can calculate your exact net.
- Clarify in the contract who pays for the owner’s title policy, HOA documents, and recording fees.
- Complete agreed repairs and provide any receipts or warranties before the final walk‑through.
- Review the settlement statement for prorations, commissions, and any concessions.
What to bring on closing day
Buyers
- Government‑issued ID.
- Proof of homeowner’s insurance binder if required.
- Closing funds as instructed by the title company.
- Any lender or title documents requested in advance.
Sellers
- Government‑issued ID.
- Keys, garage remotes, gate codes, and any access devices per the contract.
- Payoff information or documents the title company requested.
Timeline and negotiation tips
- Nail down who pays the owner’s title policy, settlement fees, survey, and HOA items in your contract.
- Order inspections and the survey early so you can address issues within your option period.
- For properties in areas with oil and gas activity, ask for title documents related to mineral reservations, leases, and easements as soon as the title commitment is ready.
- Check recording fees with the Reeves County Clerk and verify property tax status through county offices before closing.
Wrap‑up
When you understand what closing costs cover in Pecos, you can plan your budget, negotiate with confidence, and move from contract to keys without surprises. If you are weighing buyer credits, title‑policy decisions, or rural due diligence, you do not have to figure it out alone. Connect with a local guide who knows Pecos and the wider Permian Basin market.
Have questions about your specific costs or net proceeds? Reach out to Marisa Florez, Realtor Golden Door Realty for a clear plan, local insights, and a smooth closing. Get Your Instant Home Valuation.
FAQs
What do buyer closing costs include in Pecos?
- Buyers typically cover lender fees, appraisal, title and settlement charges, recording, prepaid insurance and interest, initial tax and insurance escrows, inspections, and often the survey.
Who pays for the owner’s title policy in Texas?
- It is negotiable. The lender’s policy usually is buyer paid, while the owner’s policy can be paid by either party based on local custom and your contract.
Does Texas have a real estate transfer tax?
- No. Texas does not impose a state real estate transfer tax. You will still pay recording fees and standard title and settlement charges.
How are property taxes prorated at a Reeves County closing?
- Taxes are commonly prorated so each party pays for their time of ownership during the tax year, based on local billing schedules and your contract.
How can I see my closing costs before closing?
- Your lender must provide a Loan Estimate shortly after application and a final Closing Disclosure at least three business days before closing that itemizes costs.
