Who Pays Closing Costs in Georgia? A Buyer’s and Seller’s Guide

One of the most common questions we hear from both buyers and sellers is: “What am I actually paying at closing?” The answer in Georgia follows a general pattern, but it’s also negotiable.

What Buyers Typically Pay

As a buyer, your closing costs generally include lender fees, the appraisal, prepaid interest, escrow deposits for taxes and insurance, title search and examination fees, owner’s title insurance, the Georgia intangible recording tax, and your share of the attorney’s fee.

In total, Georgia buyers should expect 2% to 4% of the purchase price in closing costs, in addition to the down payment. On a $400,000 home, that’s approximately $8,000 to $16,000.

What Sellers Typically Pay

Sellers generally cover the real estate commission (typically 5% to 6%), the Georgia transfer tax ($1.00 per $1,000 of the sale price), their share of the attorney’s fee, mortgage payoffs, and prorated property taxes.

Seller closing costs typically run 7% to 9% of the sale price when the commission is included. On a $400,000 sale, that’s roughly $28,000 to $36,000.

What’s Negotiable

Almost everything is negotiable. In a buyer’s market, sellers often agree to a “seller concession,” which is a contributing toward the buyer’s closing costs. Buyers can shop for certain services like title insurance and home inspections.

What isn’t negotiable: the Georgia intangible recording tax and the state transfer tax. These are statutory and apply regardless of what the parties agree to. However, the parties can certainly agree on who will be responsible for paying these taxes.

How Edwards Law Can Help

At Edwards Law, we review your closing costs line by line. No surprises at the closing table.

Ready to close with confidence? Call us at 404-341-9377 or email info@edwardslawatl.com.