How Much Are Closing Costs in Georgia?

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Editor’s note: This post will help answer the question: How much are closing costs in Georgia (GA)? The example costs provided are based on median home prices and typical fees. Your closing costs may differ depending on your circumstances and the terms of your home purchase.

When it comes to closing costs, the Peach State is one of the friendlier parts of the U.S. to purchase a home in.

“Georgia is good about not having extra fees or high fees,” says Howard Jefferson, a top-performing Georgia real estate agent with 35 years of experience.

That said, you can still expect to pay at least a few thousand dollars in standard taxes, services, and processing fees before being handed the keys to your new home. This is especially true if you intend to take out a mortgage.

In this post, we’ll break down exactly what those closing costs are so you can properly prepare for these sometimes overlooked homebuying expenses. We’ll also review how you can estimate your closing costs and ways you might be able to lower your closing costs.

A Top Georgia Agent Can Help Reduce Your Costs

Partner with a top Georgia buyer’s agent who can help you navigate your homebuying journey and reduce the final amount you’ll pay at closing. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.

What are closing costs?

Closing costs are a set of fees related to buying a house, which are due on the official date of purchase (also known as closing). Some of these costs, such as property taxes and insurance, are related to homeownership in general. Others, such as origination fees and interest, are directly related to obtaining a mortgage.

Richie Helali, a licensed, senior mortgage advisor at HomeLight Home Loans, says that closing costs are most often paid through wire transfer or certified check, along with the down payment for your home loan (which is not part of your closing costs, but is typically due at the same time).

If the total amount of your closing costs plus your down payment is financially overwhelming, sometimes lenders will allow you to add the closing costs into the total amount of your loan, thus reducing the amount of cash needed at closing – we expand on this in the Additional Expert Insights section toward the end of the article.

We’ll also provide some example closing costs in a minute to illustrate how this all plays out.

Who pays for closing costs in Georgia?

Both buyers and sellers are responsible for certain fees and closing costs in a home sale transaction, which we’ll break down in more detail in the next section.

Here’s a general idea of what those costs amount to for each party:

  • Buyers typically pay: 3%-4% of the loan amount
  • Sellers typically pay: 5%-10% of the home’s price

While the percentages above are typical, buyers and sellers can negotiate to determine who pays specific closing costs.

Depending on the market conditions, a motivated seller might consider covering part or all of the closing costs for a buyer in order to help close the deal.

In the current Georgia housing market, however, it’s rare for a seller to cover any of the buyer’s closing costs, Jefferson says.

“I know different parts of the country are having different experiences, but at least in my market, it’s still very much a seller’s market,” he says. “If you put a good, decent house on the market, we’re going to see it sell within two or three days, and you’re going to have more than one offer on it. Some buyers are scared to ask the seller to pay the closing costs because it hurts how they appear compared to other offers.”

Jefferson imagines his market will balance out in the next year or two. When it does, he predicts sellers will likely start covering about half of the buyers’ closing costs.

How much are closing costs in Georgia?

For buyers, most of the closing costs are associated with whatever amount of money they decide to borrow from a lender to purchase a home.

For instance, let’s say someone puts 15% down on a home purchase and takes out a loan for the remaining 85%.

For this illustration, we’ll use a Georgia median home price of $330,700. That 85% mortgage would amount to $281,095. Since buyers typically pay between 3% and 4% on the loan amount in closing costs, the dollar amount would equate to $9,838.

If someone buys a house and pays cash without a loan, then the total closing costs can be as low as $1,000, Jefferson says.

“If you’re paying cash, there just aren’t a lot of closing costs,” he says. “Sometimes people don’t think about it.”

For sellers, the lion’s share of the closing costs is the agent commissions, which are percentages of the home’s total sales price.

In Georgia, agent commissions average about 5.8%.

Buyer closing costs in Georgia

Typical buyer closing cost total: $9,800 (3.5% of a $281,095 loan, which is 85% of a $330,700 median-priced home)

Closing cost item Typical cost to buyer % of loan amount
Appraisal fee $400 – $750 0.16%
HOA charges (prorated or approval fees) $100 – $400 0.07%
Loan origination fees $2,100 0.5% – 1%
Credit report $20 – $50 0.01%
Intangible loan tax $843 0.29
Home inspection $392 0.14%
Wood Destroying Organism inspection $50 0.01%
Recording fees $25 0.01%
Attorney fees (legally required in GA to close home sale) $1,000 – $2,000 0.53%
Flood certification fee $15 0.01%
Title Insurance (optional) $500 and up 0.17%
Homeowner’s insurance (12 months prepaid at closing) $2,080 0.73%
Survey Fee (Rare, but lender may require) $376 – $745 0.2%

Seller closing costs in Georgia

Typical seller closing cost total: $24,800 (7.5% of a $330,700 median-priced home)

Closing cost item Typical cost to seller % of sale
Real estate commission $19,180.6 5.8%
Transfer taxes (or documentary stamp) $330.70 0.1%
Title search fee $100 – $200 0.05%
Property taxes (May need to pay back buyer) $2679 0.81%
Wire transfer fees $0 – $50 0.01%
Concessions Varies
Outstanding amounts (utility bills, HOA fees) Varies

How can I estimate my closing costs in Georgia?

A buyer’s closing costs in Georgia average 3%-4% of the sales price. Based on those ranges, you can get a ballpark idea of what your closing costs might be from the following chart.

Home price 3% closing costs 4% closing costs
$200,000 $6,000 $8,000
$250,000 $7,500 $10,000
$300,000 $9,000 $12,000
$350,000 $10,500 $14,000
$400,000 $12,000 $16,000
$450,000 $13,500 $18,000
$500,000 $15,000 $20,000

Buyers in Georgia can get a rough or preliminary estimate by using free online tools such as HomeLight’s Closing Costs Calculator.

Other handy tools from HomeLight include our Home Affordability Calculator and Down Payment Calculator.

The best way to determine what your closing costs will be in Georgia is to partner with a top real estate agent or mortgage advisor.

How can I lower my closing costs in Georgia?

There are several ways for Georgia buyers and sellers to minimize closing costs, including:

  1. Negotiate with the seller to pay your closing costs: If your area is experiencing an inventory shortage, sellers may be less likely to agree to pay the buyer’s closing costs. However, it doesn’t hurt to ask. For the seller, it’s all about how much they walk away with and selling on a timeline that fits their objectives. This is another part of the buying process where an experienced agent can be extremely valuable.
  2. Buy for cash or sell to a cash buyer: A cash buy or cash sale can eliminate two of the biggest expenses: mortgage fees and commissions. Typically, homeowners who sell to cash-buying companies don’t pay any closing costs.
  3. Shop around for a mortgage company or loan: Compare interest rates as well as incentives and closing costs. If you are planning ahead, raising your credit score can also help lower some of the lender fees and points.
  4. Shop around for a real estate attorney: When hiring an attorney for your home purchase, you might save on fees by hiring an attorney in a smaller town. However, it’s crucial to hire an attorney that specializes in real estate law.
  5. Shop around for a real estate agent: Sellers can save on their closing costs by hiring a broker that charges a lower commission rate. Alternatively, some agents may be willing to negotiate a lower commission. For example, a discount brokerage may save the seller 0.5%-1% of the listing commission. However, an experienced local real estate agent that charges full commission is more likely to negotiate the best deal on your behalf.

Aside from these, the only thing that’s really optional to a buyer is whether they want to buy title insurance for the house. “For the average home, that might cost them $500 to $600, and no one’s making them do it,” Jefferson says. “95% of the time, you’re never going to need it.”

The insurance basically covers situations such as after buying a house, you find out the attorney somehow overlooked that the seller’s sibling owns interest in the home, and now that person has a lien on the property.

Another example would be if the builder didn’t pay all the bills and then a lumber company puts a lien on the house.

Since buyers are required to hire an attorney for the closing process in Georgia, and a significant part of the attorney’s job is to ensure the title is free and clear, it’s very unusual for there to be any issues with the title after the sale, Jefferson says.

How can I find a top real estate agent in Georgia?

HomeLight can connect you with some of the most experienced buyer’s agents in Georgia. Simply answer a few questions, and our Agent Match platform will analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.

Additional expert insights about closing costs in Georgia

When are closing costs paid in Georgia?
Almost everything is paid the day you hand over the keys at the attorney’s office, Jefferson says. One of the few exceptions is the home inspection, which is usually paid at the time of service, he says.

Can I add closing costs to my home financing?
In many cases, yes. Some lenders won’t do this, however, and the rules can vary depending on the type of mortgage you get. Keep in mind that if you opt to roll your closing costs into your financing, you’ll be paying interest on them for the life of the loan, costing you quite a bit more in the long run.

Will I need to pay private mortgage insurance (PMI) in Georgia?
That’s going to be up to the lender. As a general rule, if you’re putting less than 20% down on the home, you’ll likely have to pay some form of mortgage insurance. This protects the lender in the case of you defaulting on your loan and the lender can’t sell the home for enough to cover the remaining balance on the loan.

There are three types of mortgage insurance. For a conventional loan, it’s called Private Mortgage Insurance (PMI). If it’s a VA loan, it’s called the VA Funding Fee. And if it’s a Federal Housing Administration (FHA) loan, then it’s called Mortgage Insurance Premium (MIP). Each comes with its own set of requirements.

Will a builder pay closing costs on a new construction home in Georgia:
Typically, yes. Builders often advertise this to incentivize buyers to purchase from them as opposed to a competitor or regular homeowner.

Know before you close your home purchase in Georgia

Having a clear sense of what you may owe in closing costs can help you prepare the necessary finances and give you an idea of where you might be able to negotiate a better deal.

Partnering with a top buyer’s agent in Georgia can be a pivotal piece in ensuring a successful negotiation, so using a free tool like HomeLight’s Agent Match to find that ideal fit may save you a good deal of money in the end.

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