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In this article

1. What is the Average Closing Cost Percentage in GA?
2. What Exactly are Closing Costs?
3. Factors That Will Affect Closing Costs
4. Calculate Your Closing Costs With Our Estimator
5. Who Pays Closing Costs In GA?
6. What are the Seller’s Closing Costs in Georgia?
7. When Do Closing Costs Need to Be Paid?

Closing costs can be a bit confusing for pretty much anybody, whether you are a new homebuyer, an experienced one or a refinancing homeowner.

On this page we will give you everything you need to know about closing costs in Georgia as well as a calculator you can use to estimate what your closing costs are going to be.

What is the Average Closing Cost Percentage in GA?

The average closing costs can range from 2% to 5% of the total loan amount.

In Georgia, the average closing cost amount is $3,762 for a $290,000 mortgage. That is just slightly more than 1% of the loan amount and a fair amount less than the national average of $6,800.

What Exactly are Closing Costs?

Closing costs are basically expenses that come with the mortgage loan processing process. They include fees such as loan origination fees, appraisal fees, survey fees, title insurance fees, taxes and others.

Since mortgage loans are offered by lenders, closing costs are also charged by and paid to lenders.

Factors That Will Affect Closing Costs

Not all lenders have the same items on their closing costs so you should expect that value to vary wildly from one lender to another. Also, the location of your house will play a role in determining how much you will pay.

On top of that, appraisers, surveyors and other third parties charge differently for different areas. If you want a more accurate Georgia closing costs estimate, contact us at Moreira Team and we will give you a breakdown of each item based on your type of loan, property, and location.

Calculate Your Closing Costs With Our Estimator

Who Pays Closing Costs In GA?

In Georgia, both the buyer and the seller have their own set of closing costs to pay. The division of these costs can be negotiated between the parties, but traditionally, each have their set of costs to pay. Here’s a general breakdown.

Typically paid by the Seller:

• Real Estate Agent Commissions
• Title Transfer Tax or Warranty Deed
• Owners Title Insurance
• Attorney Fees
• HOA Transfer Fees
• Prorated Property Taxes and HOA Dues
• Any Negotiated Repairs or Credits
• Outstanding Mortgages or Liens

Typically paid by the Buyer:

• Lender’s Title Insurance
• Appraisal Fees
• Origination Fees and Discount Points
• Credit Report Fee
• Prepaid Expenses
• Recording Fees
• Attorney Fees
• Home Inspection Fee
• Survey Fee

All of these costs are negotiable, and the specific division of costs should be clearly outlined in the purchase and sale agreement.

Buyers and sellers should consult with their real estate agents or attorneys to ensure they understand all the costs involved in the transaction.

What are the Seller’s Closing Costs in Georgia?

Here is a more in-depth look at some common seller’s closing costs you can expect in Georgia:

• Real Estate Agent Commissions: This is usually the largest seller closing cost. Typically, the total commission is around 5% to 6% of the home’s sale price, which is usually split between the buyer’s agent and the seller’s agent.

• Title Transfer Tax or Warranty Deed: In Georgia, the seller often pays the state’s transfer tax. Currently, the tax is $1.00 for every $1,000 of the sale price, plus an additional 10 cents per $100.

• Owners Title Insurance: Sometimes, the seller may agree to pay for the owner’s title insurance. This is negotiable, but if the seller pays, it’s a protection for the buyer against title issues.

• Attorney Fees: In Georgia, real estate closings are conducted by attorneys, and the seller may have their own attorney. The fees can vary but are often between $500 and $1,500.

• HOA Transfer Fees: If the property is in a homeowners association (HOA) community, there might be transfer fees or documentation fees associated with changing the ownership.

• Prorated Property Taxes and HOA Dues: Sellers might have to cover their portion of property taxes or HOA dues up to the date of the sale.

• Home Warranty: Sometimes, sellers offer to cover the cost of a home warranty for the buyer, which can range from $300 to $600, on average.

• Any Negotiated Repairs or Credits: If, after a home inspection, certain repairs are needed, the seller might agree to cover these costs.

• Outstanding Mortgages or Liens: The seller will need to pay off any existing mortgages, equity lines of credit, or other liens on the property at closing.

• Miscellaneous Fees: These can include fees for escrow services, courier services, and other transaction-related expenses.

Note that these are general guidelines and the specifics of any deal can vary widely.

The preliminary settlement statement or a detailed breakdown provided by the real estate agent or closing attorney is going to be the best source of information as to which costs you will need to pay as the seller, as this will have the specific information to your particular transaction.

If you need help with this, our Georgia mortgage experts can help you with anything to do with closing costs.

When Do Closing Costs Need to Be Paid?

Closing costs are typically paid at the time of the closing of the real estate transaction, which is why they are called “closing costs”. The closing (sometimes called “settlement”) is the final step in completing a real estate transaction.

At this time, the buyer completes the purchase by paying the seller (typically through the escrow or closing agent), and the seller transfers the title to the buyer. Here’s a general overview:

• For the Buyer: Most of the buyer’s closing costs can be rolled into their mortgage, but this depends on the loan type and the lender’s policies. However, some costs, such as the down payment and any costs not covered by the loan, need to be paid upfront at closing. This is usually done in the form of a cashier’s check or wire transfer.
• For the Seller: The seller’s closing costs, such as the real estate agent’s commission, are usually deducted from the proceeds of the sale. This means that the seller does not usually need to bring money to the closing unless they owe more on their mortgage than they are getting from the sale.
• Escrow Account: If the buyer’s lender requires an escrow account (which is common), the buyer will also make an initial deposit into this account at closing. The escrow account is used to pay property taxes and homeowner’s insurance.
• Final Statements: Both the buyer and the seller will receive a closing disclosure or settlement statement prior to closing. This document provides an itemized list of all fees and costs, showing who is responsible for each cost and the amounts to be paid or received at closing.
• Location of Payment: The actual payment of closing costs takes place at the office of the escrow agent, closing attorney, or title company managing the closing.
• Location of Payment: The actual payment of closing costs takes place at the office of the escrow agent, closing attorney, or title company managing the closing.

It’s always a good idea for both buyers and sellers to review their closing disclosure or settlement statement carefully and ask questions if there are any unclear charges. This ensures that all parties understand what they’re paying for and can avoid last-minute surprises.

It is worth mentioning that in Georgia you have the option to pay all or part of the costs when making your down payment.