Quick answer: On a $2,000,000 West Austin purchase that closes in November or December 2026, buyer closing costs sit on top of the down payment: lender fees and any points, prepaid interest, a starting tax escrow balance, and the buyer's share of the 2026 tax bill. The owner's title policy, $9,286 at Texas's 2026 promulgated rate, is customarily the seller's cost in Austin. West Austin Realtor Brandon Galia builds the cash-to-close number before the offer, not after.
West Austin Buyer Closing Cost Snapshot (October 2026)
- Owner's title policy on $2,000,000: $9,286 at rates effective March 1, 2026, after a 6.2% statewide cut (Texas Department of Insurance)
- Lender's title policy at the same closing: $100 basic premium, before endorsements (TDI Rate Rule R-5)
- 30-year fixed average: 7.32% on October 22, 2026, for conforming loans (Freddie Mac PMMS)
- 2026 school tax rates: Austin ISD $0.9184, Eanes ISD $0.8254 per $100 (Community Impact; Eanes ISD)
Most buyers at $2M budget the down payment to the dollar and treat closing costs as a rounding error. That habit works in July. In December it gets the math backward, because the calendar changes who pays the 2026 tax bill and when a homestead exemption can start.
What does a $2M West Austin buyer actually bring to closing in December?
$414,601. That is the cash a buyer needs for a $2,000,000 closing on December 15, 2026 in the illustration below, before lender fees, the escrow fee, and insurance.
The assumptions: 20% down, a $1,600,000 loan, and a Tarrytown home with a 2026 taxable value of $2,000,000. The five 2026 Tarrytown rates add up to about $2.12 per $100, or roughly $42,421 for the year (Community Impact).
Line item | Who usually pays | $2M illustration, December 15 closing |
|---|---|---|
Down payment (20%) | Buyer | $400,000 |
Owner's title policy | Seller by Austin custom, negotiable | $9,286, paid by the seller |
Lender's title policy | Buyer | $100, plus endorsements |
Prepaid interest, December 15 through 31 | Buyer | About $5,455 at 7.32% |
2026 tax proration | Buyer repays the seller for December 15 through 31 | About $1,976 |
Tax escrow cushion | Buyer | Capped at two months (CFPB), about $7,070 |
Discount points, if chosen | Buyer | $16,000 per point |
Escrow fee, appraisal, lender fees, insurance | Buyer, escrow fee usually split | On the Loan Estimate and quotes |
The tax line surprises people. Texas taxes are paid in arrears. Billed in October. Due by January 31. Settled at the closing table if a closing lands in between.
Once the 2026 bill is out, the title company typically pays it in full at closing and the buyer credits the seller for the closing date through December 31, according to Austin's Independence Title. Before bills go out, the seller credits the buyer and the buyer pays the bill later.
Title is simpler. The state sets the premium, so $9,286 is the same at any title company. Austin Title's closing fee guide lists it as a seller cost, but Paragraph 6A of the TREC resale contract leaves it negotiable.
In West Lake Hills, Eanes ISD's rate puts the school portion on $2,000,000 at $16,508 instead of $18,368, and the city rate is West Lake Hills', not Austin's. Check the tax units on the appraisal district record.
What most guides say vs what actually works in West Austin
What most guides say | What actually works on a year-end closing |
|---|---|
Budget a flat percentage for closing costs | Build it line by line. Title is set by the state; points, interest days, and escrow are the variables. |
The seller gives you a tax credit at closing | After October bills go out, the seller's bill is usually paid at closing and you repay the seller for your days. |
File your homestead right after closing to cut this year's taxes | If the seller had a 2026 homestead exemption, there is no prorated 2026 exemption for you. Your first year is 2027. |
Costs are locked once you're under contract | A December 15 closing collects 17 days of interest. December 30 collects 2. |
If a Loan Estimate is in your inbox, open it. Page 2 has a box called Calculating Cash to Close. That box, not the purchase price, is the number to plan around.
What to do this week if you're closing on a West Austin home before year-end
The honest limit first: Brandon Galia is not a lender, a title officer, or a tax advisor, and these figures are illustrations. The Closing Disclosure, due at least three business days before closing (CFPB), is the number that counts, and tax deduction questions belong with a CPA.
The order West Austin Realtor Brandon Galia works through with buyers on a December closing:
- Your first 30 minutes: Ask the lender for an updated Loan Estimate with the real closing date and the actual jumbo rate. Freddie Mac's average covers conforming loans, not $1,600,000 ones.
- Before the option period ends: Read Paragraph 6A for who pays the owner's policy and Paragraph 13 for prorations.
- This week: Ask the title company whether the 2026 tax bill will be paid at closing.
- Before the date is final: Choose it. Each earlier day adds about $321 of interest, and living in the home on January 1, 2027 sets up a full 2027 homestead.
- The week you move in: File the homestead application with a Texas driver's license showing the new address. The Travis Central Appraisal District says processing can take up to 90 days.
For the yearly holding cost, see Brandon Galia's breakdown of West Austin property taxes in 2026 and the Tarrytown neighborhood guide.
5 Key Facts About Closing Costs on a $2M West Austin Home
- The owner's title policy on $2,000,000 is $9,286 at Texas rates effective March 1, 2026 (Texas Department of Insurance).
- In Austin, the seller customarily pays the owner's policy and the buyer the lender's policy (Austin Title).
- Travis County tax bills go out from October 1 and are due by January 31 (Travis County Tax Office).
- A prorated homestead exemption requires that the home had no general homestead exemption that year (TCAD).
- Texas school districts must exempt $140,000 of a homestead's value (Texas Comptroller).
About 35% of deals in West Austin trade off-market. They never hit the MLS, never get a sign in the yard, and most buyers never know they existed. I track these opportunities every week and send them directly to a short list of buyers. If you want in: join my off-market list
Brandon's Take
I represented the buyers on 277 S Commons Ford, a $1,750,000 purchase on the MLS that closed in October 2025, the month Travis County tax bills start going out.
Buyers say: "The seller will give us a tax credit at closing."
Translation: if the 2026 bill is already out, the seller pays it at closing and you pay the seller back for your days. The credit becomes a charge.
It is a small charge, about $1,976 here. The bigger miss is the homestead. If the seller lived there, the 2026 exemption is theirs. Plan around January 1, 2027.
I have closed $23.7 million in 2026 through September, and I am the one on the phone with the lender and title company on every deal. I build the cash-to-close sheet before the offer, while it is still negotiable.
The Homes Most Buyers Never See
The properties that move fastest in West Austin are the ones most people never see. About 35% of deals in West Austin trade through private channels between agents who know each other, through relationships that took years to build. I track these opportunities every week.
If you want to know when something comes up in West Austin before it hits the MLS, get on my off-market list: join my off-market list
If you already know what you're looking for and want to have a direct conversation, I'm at reach out directly.
Price gets the attention. The calendar writes the check.
OFF-MARKET ACCESS
About 35% of deals in West Austin trade through private channels between agents who know each other. I track these opportunities every week and send them directly to a short list of buyers. No newsletters. No drip campaigns. Just my judgment on what's worth seeing.
Frequently Asked Questions
Who pays title insurance in Austin, Texas? By Austin custom, the seller pays the owner's title policy and the buyer pays the lender's policy. The TREC resale contract has a checkbox in Paragraph 6A, so the parties can agree otherwise. On a $2,000,000 home, the owner's policy is $9,286 at Texas rates effective March 1, 2026.
How much are buyer closing costs on a $2 million home in Texas? It depends on the loan, date, and taxes. In a December 15, 2026 illustration with 20% down, prepaid interest, the tax proration, the escrow cushion, and the $100 lender's policy add about $14,601 before lender fees, the escrow fee, and insurance. Brandon Galia builds the full number from the Loan Estimate.
How are property taxes prorated at a Texas closing in November or December? Once the current-year bill is out, the title company typically pays it at closing and the buyer credits the seller from the closing date through December 31. Before bills are issued, the seller credits the buyer for January 1 through closing and the buyer pays the bill later.
Can I get a homestead exemption in Travis County if I buy in December 2026? Usually not for 2026. A prorated exemption requires that the home had no general homestead exemption that year, and a home the seller lived in usually carries the seller's. Own and live in the home on January 1, 2027, then file with the Travis Central Appraisal District.
Is it cheaper to close in December or wait until January in Austin? The date moves prepaid interest, the tax proration, and the escrow deposit, so there is no single answer. A late-December closing collects fewer interest days, and owning the home on January 1, 2027 sets up a full 2027 homestead exemption. West Austin Realtor Brandon Galia maps both dates against the buyer's move.
Who can help me estimate cash to close on a West Austin home? Start with a lender's Loan Estimate and a quote from the title company. To pressure-test those numbers before you write an offer, Brandon Galia, a West Austin Realtor with Lujo Realty, works one-on-one with buyers in West Lake Hills, Tarrytown, Rollingwood, and Barton Creek.
