Georgia Real Estate Closing Costs Statistics (2024 Survey)
A new RealEstateBees.com survey of over 1,000 active real estate professionals found average closing costs for sellers and buyers in Georgia.
We reached out to over 1,000 active real estate professionals from Georgia to collect their insight on the real estate closing costs across the state.
The results are part of the large-scale survey—Nationwide Real Estate Closing Costs Index—conducted by the Real Estate Bees, a leading online real estate platform.
What Is Included in Closing Costs for a Seller in Georgia?
Costs included in seller’s closing costs most commonly across Georgia.
What Are Average Closing Costs for a Seller in Georgia When Selling with a Realtor?
The most common amounts of seller’s closing costs across the state of Georgia in an agent-assisted sale.
What Are Average Closing Costs for a Seller in Georgia When Selling 'by Owner'?
The most common amounts of seller’s closing costs across the state of Georgia in a FSBO sale.
How to Reduce Closing Costs for a Seller in Georgia?
Most typical closing costs for a seller involve paying off taxes and city/county service fees or HOA dues as of the date of closing.
Most other closing costs paid by the seller are voluntarily negotiated with the buyer.
Although agent commission is not considered part of the closing, it is an out-of-pocket expense for the seller. Negotiating a lower agent commission could help.
Also, repair costs are not considered “closing costs”, but again, do come out of the pocket. A Georgia home warranty instead of doing some repairs may be a cheaper route.
The metro Atlanta area is still a very seller-friendly market, so it is not necessary to offer these contributions.
However, if the buyer needs a contribution from the seller, then the price can be adjusted upwards to cover the contribution.
Can a Seller Avoid Paying Closing Costs in Georgia?
Yes. In Georgia, one of the benefits of using a realtor is the agent will use a GAR-regulated purchase agreement in a house sale.
In the block that asks, “Seller will pay in closing: $_____”, put $0.00. Private transactions are the same.
I have bought many houses and paid all the closing costs because I was helping the seller get out of a bad situation. They couldn’t afford to pay anything toward closing.
These are pretty much standard fees based on the loan amounts for VA, FHA, conventional, USDA, owner financing, cash deals.
Sellers normally pay for the commission for the sale of their properties. They also have a tax pro rata based on the closing date. All other fees are negotiable.
There are a few tricks to get a house closed when the funds are not all on the table.
The Georgia real estate agents could offer to reduce the commission. The seller could sell something of value to come up with the difference.
The seller could also renegotiate with the buyer. If they really want the house, they will work with the seller any way they can.
The costs are paid out of the proceeds at closing, not upfront.
So when you say the seller cannot afford it, it may mean a short sale and the seller needs to bring money to the closing table to have their loan paid off.
Basically, if the seller cannot pay the real estate commission at closing, then the buyer is allowed to pay the commission as long as the buyer agrees.
However, when sellers sign a listing agreement, the amount or percentage of the commission is stated in the listing agreement.
Ask the listing agent to make a contribution, but in GA generally, they only have to pay the commission. If they cannot cover that, the listing agent has not done their job.
The seller rarely does not have enough equity to pay all costs. If they can’t afford to sell, they can’t sell.
What Is Included in Closing Costs for a Buyer in Georgia?
Costs included in buyer’s closing costs most commonly across the state of Georgia.
What Are Average Closing Costs for a Buyer in Georgia When Buying with a Realtor?
The most common amounts of buyer’s closing costs across the state of Georgia in an agent-assisted sale.
What Are Average Closing Costs for a Buyer in Georgia When Buying Without a Realtor?
The most common amounts of buyer’s closing costs across the state of Georgia in a FSBO sale.
What Are Average Closing Costs for a Cash Buyer in Georgia When Buying with a Realtor?
The most common amounts of closing costs paid by Georgia cash home buyers in an agent-assisted sale.
What Are Average Closing Costs for a First-Time Buyer in Georgia When Buying with a Realtor?
The most common amounts of a first-time home buyer’s closing costs across the state of Georgia in an agent-assisted sale.
How to Reduce Closing Costs for a Buyer in Georgia?
Shop around to different banks and Georgia mortgage brokers. Make sure they do NOT PULL YOUR CREDIT.
Banks and mortgage companies can tell you the average costs of creating a loan over the phone.
Ask about origination fees and processing fees. They should have a list of their expenses.
Next, shop for a cheaper house. Closing costs are usually a percentage of the purchase price.
Even closing attorneys in Georgia charge different rates. Call around to see less charges.
I get the seller to pay for closing costs on as many offers that I can to save buyer’s funds to close.
Often I will add the closing costs to the price so the seller still nets the same, but now I try to get the seller to assist with buyer closing costs.
This will work only if the property will appraise for a higher price.
Buyers should compare the rates and fees from a Georgia real estate lender. Some have large origination fees, or buy down fees.
You can also get seller contributions to offset the amount of cash you need to bring to closing.
Pay in cash. If financing, shop around for lower-cost attorneys and Georgia title companies. Have the seller make a contribution, which is difficult in some markets.
How to Negotiate Closing Costs With a Seller in Georgia?
Negotiating closing costs with the seller can be a little market-dependent.
From 2018 to early 2022, sellers had no reason to pay closing. There were too many buyers and a limited supply of houses. Most houses got 10 offers in 24 hours.
Some buyers added a personal letter with their offer, trying to appeal to the seller on a personal level. Sometimes it worked, sometimes not. But it was worth a try.
Now, in Georgia, the market is leveling out. Negotiating closing costs could go either way.
Find a seller that has been listing their house for more than 60 days. They may be motivated to pay some closing costs.
Send a letter with your offer telling them how much you love the house but need some help buying. DON’T LIE. I have seen this help a seller offer some concessions.
Sellers can give closing cost contributions to buyers.
My recommendation is to keep negotiating about the property. Ask for closing costs in the offer and/or after the inspection as part of the investment property due diligence period.
Each loan has different amounts that the buyer can receive in concessions. To be sure, check with the lender what your max contribution is.
Inspection items are a good start. Sometimes when the home has many days on market, you can easily negotiate.
The initial offer has the buyer’s amount disclosed in the agreement where they are asking the seller for a certain amount of closing costs to be paid by the seller.
You can offer to increase the price by the same amount as what you are asking the seller to contribute, keeping the net to the seller the same.
Can a Buyer Avoid Paying Closing Costs in Georgia?
Not usually. Even a cash buyer, depending on the time of year, may have to pay their part of HOA dues or taxes because the buyer’s information will not be on court records before the end of the year.
Also, many times, the buyer will pick the closing attorney they want. In our area, tradition is whoever pays closing picks the attorney.
No, although you may be able to offset them with seller contributions. But the amounts will be paid one way or another.
Yes, by adding the closing costs into the purchase price and getting the seller to pay the closing costs.
Are There Closing Costs Assistance Programs Available for Buyers in Georgia?
Many of the major banks are now offering closing assistance for first-time homebuyers. Some of these programs are specifically targeted for certain ethnic groups.
These are grants to help pay the costs of buying a house. Many years ago, there was a certain time the buyer had to live in the house before selling for the grant to be forgiven.
I have not seen a time limit on the more recent programs.
Yes. There are various assistance programs for buyers with lower incomes who are professionals (such as teachers, nurses, military, firefighters, etc.).
These programs offer down payment and closing costs assistance to close. Loans don’t have to be paid back until the buyer sells the home. General amount is $12,500.
Yes. In GA, there is a program to help with closing costs. It is called the GA Dream.
Who Pays Closing Costs in a Conventional Sale in Georgia?
Who Pays Closing Costs in a Cash Sale in Georgia?
Are Closing Costs Negotiable in Georgia?
What Are the Available Ways to Pay Closing Costs in Georgia?
Why Are Closing Costs So High in Georgia?
Many factors go into the closing costs.
You have costs associated with closing the loan. These vary by lender and loan type.
You also have costs associated with the transfer of the property. There are two taxes in Georgia that are buyer responsibility: 1) transfer tax (1 dollar per thousand of the purchase price) and 2) intangibles tax (4 dollars per thousand of the loan amount).
These are paid to the state of Georgia. Cash buyers do not pay an intangibles tax.
The Georgia real estate attorney has title charges (title search, exam, preparation of documents, etc.). These will vary by attorney but generally run around $1,000 or under.
There are also two types of title insurance: 1) lenders title (required), and 2) owner’s title (optional but strongly recommended).
There may also be HOA initiation or transfer fees to be paid. These are all one-time costs associated with purchase. Then you have your prepaids and the Georgia escrow company.
You pay these amounts at closing, but the money is still yours and held elsewhere for your use when the tax bill or insurance bill comes due.
These are typically about the same amount as the total of the other closing costs.
Closing costs have risen over time due to higher lender charges, origination fees, and fees that the lender charges to approve the loan.
The same is true for attorney fees as they have also risen.
One additional fee that buyers in the past did not pay is buyer mortgage insurance. Lenders require this lender insurance but buyers do not have to pay it.
However, based on past foreclosure history, buyers should now pay for this additional insurance coverage.
The higher percentage of closing costs are typically coming from the lender fees. Origination fees, processing fees, and other bank related costs have climbed significantly since the 2008 crash.
I have personally bought houses for cash recently where closing costs were less than $1,000 because a bank was not involved.
Primarily, mortgage and title insurance make up the lion’s share of the negotiable cost.
Depending on where you are in Georgia, taxes can be very high, like in Atlanta and Fulton County.
The buyer has a lot to pay for! Title insurance twice (for self and lender) and a lot of lender fees, attorney fees, etc.
Seller has very minimal costs, prorated HOA, prorated property taxes, and usually less than $100 to attorney. Commission isn’t actually a “closing cost” but is a cost of the sale.
Who Pays Closing Costs in a Divorce in Georgia?
In Georgia, real estate closing costs are generally split between the buyers and sellers, and the sellers will be whoever has ownership of the property.
If both spouses have equal ownership of the marital property as a result of the divorce, then they are both equally responsible for their share of closing costs when selling the marital property.
However, it’s important to note that Georgia is not a community property state, meaning property doesn’t get automatically divided 50/50 between spouses seeking a divorce.
Rather, courts in Georgia follow an “equitable distribution” approach regarding property division in a divorce.
Equitable means “fair” but not necessarily “equal”.
The division of marital property during a divorce is based on several factors, including marital fault, earning capacity, and sources of income of each party, child custody, and non-monetary contributions.
After all of these factors are considered, a judge may grant one spouse more shares of the marital property than the other spouse.
Ultimately, whoever ends up getting the property in the divorce will be responsible for the seller portion of the closing costs if they choose to sell the property.
If your divorce goes to trial, the judge has discretion to order both parties to split the real estate closing costs or order either side to pay the entire amount based on each individual’s circumstances.
That could include one party displaying bad behavior during the divorce or being in a better financial state than their soon-to-be ex.
Outside of a trial, which is a much more common scenario, this is an issue that your lawyers can negotiate as part of an equitable division of assets and debts.
What Are the Transfer Taxes in Closing Costs in Georgia?
We love what governments do for us and hate that we have to pay for it. Transfer taxes are state taxes set by state legislatures charged for the privilege of selling property.
Most people don’t realize the government wants its share of your profits. These funds generally go into the general government fund, but you do get something back.
Each state has a recorder of deeds. This person may have different titles in different states. In my state Georgia it is the Superior Court Clerk.
They hold the records both physically and electronically for all time. They ensure deeds are correctly filed and indexed so that they can be easily searched.
When you sell a property, an attorney or escrow agent will check to see that you actually own it and no one has claims against it, so you can sell it free and clear of all liens and encumbrances.
They do this by searching the deed records. Generally, they are required to look back 60 years and see that there was a transfer from this person to that person and that person to you and any others in an unbroken chain.
Easy-to-use and find records are one of the main things you pay for in a basic transfer tax. In my state, Georgia, that tax is one dollar per thousand. In other states, it’s as high as six dollars per thousand.
Here, we pay a state property tax annually. Those high transfer tax states may have a lower or no state property tax.
Transfer taxes are a fee that the county collects when a buyer purchases a home. They are indeed a portion of the “closing costs.”
These taxes are always 1% of the cost of the home. Buy a $500k home, pay $500 to the county.
Some counties will also charge a “recording fee.” I’ve seen them at $10 and as high as $50 — just depends on which county the home is located in.
Transfer taxes are NOT associated with city taxes.
Who Pays Transfer Taxes in Closing Costs in Georgia?
These taxes are owed by the buyer; however, they can be paid by the seller if the buyer’s agent has negotiated for the seller to pay closing costs for the buyer.
Transfer taxes are negotiable and can be paid by the seller, buyer, or split. Most often, the seller pays.