If you’re planning to buy or sell a home in Georgia, understanding closing costs is essential. On average, closing costs in Georgia range from 2% to 5% of the purchase price for buyers and 6% to 10% for sellers, with agent commissions being the largest single cost. These expenses can significantly affect your bottom line—so knowing what to expect, who pays for what, and how to reduce these costs is key to a smoother real estate transaction.
What Are Closing Costs?
Closing costs are the various fees and charges associated with finalizing a real estate transaction. These costs are separate from the down payment and typically include:
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Loan origination fees
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Appraisal and inspection fees
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Attorney fees
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Title search and insurance
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Transfer taxes
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Escrow deposits for property taxes and insurance
In Georgia, both buyers and sellers are responsible for different sets of closing costs, many of which are negotiable.
Average Closing Costs in Georgia
For Buyers:
Buyers in Georgia typically pay between 2% to 5% of the purchase price in closing costs. For a $350,000 home, that’s roughly $7,000 to $17,500. These expenses are mostly tied to the mortgage process and due diligence on the property.
Common buyer costs include:
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Loan Origination Fees: 0.5%–1% of the loan amount
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Appraisal Fees: $300–$500
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Home Inspection: $300–$600
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Credit Report Fee: $10–$100
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Lender’s Title Insurance: Varies, often required by lenders
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Recording Fees: Typically $10 for the first page, $8.50 per additional page
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Escrow Prepaids: Usually covers a few months of property taxes and insurance
For Sellers:
Sellers tend to pay more overall—typically 6% to 10% of the home’s sale price—with the largest portion going toward agent commissions. For a $350,000 home, this can add up to $21,000 to $35,000.
Typical seller expenses include:
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Real Estate Agent Commissions: 5%–6% (split between listing and buyer’s agents)
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Transfer Taxes: $1 per $1,000 + 10¢ per additional $100
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Attorney Fees: $500–$1,500 (real estate closings in Georgia require an attorney)
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Owner’s Title Insurance: Negotiable, often covered by the seller
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Prorated Property Taxes & HOA Dues: Up to the date of sale
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Outstanding Mortgage Payoff: Any remaining balance owed
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HOA Transfer or Document Fees: Varies by community
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Negotiated Repairs or Buyer Credits: Based on inspection results
When Are Closing Costs Paid?
Closing costs are due at the time of closing, also known as settlement. Here’s how that usually plays out:
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Buyers: May bring a cashier’s check or wire transfer to cover their share. Some costs can be rolled into the mortgage if the lender allows.
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Sellers: Costs are typically deducted from the sale proceeds. Sellers only bring money if the home sells for less than what is owed on the mortgage.
How Are Closing Costs Divided in Georgia?
In Georgia, buyers and sellers traditionally split costs based on responsibilities outlined in the purchase and sale agreement. While most fees follow a standard pattern, nearly everything is negotiable. For example:
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Buyers can request the seller to cover certain fees (known as seller concessions).
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Sellers can agree to pay some of the buyer’s costs in exchange for a higher offer price.
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Lender credits, builder incentives, and local grants may reduce costs even more.
How to Reduce Closing Costs in Georgia
For Buyers:
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Shop Around for Lenders: Compare estimates and lender fees.
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Negotiate with the Seller: Ask for concessions, especially in a buyer’s market.
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Choose Affordable Service Providers: Title, escrow, and attorney fees can vary.
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Explore First-Time Buyer Assistance: Georgia offers programs that can cover part of your closing costs.
For Sellers:
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Use a Discount Broker: Consider agents who offer lower commission rates.
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Negotiate Agent Commissions: Even a 1% reduction can save thousands.
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Compare Attorney Fees: Not all real estate attorneys charge the same.
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Request Buyer Coverage: If inventory is tight, buyers may be willing to cover more costs.
Example: Closing Costs Breakdown
For a $350,000 Georgia Home Sale:
| Cost Category | Buyer Pays (Approx.) | Seller Pays (Approx.) |
|---|---|---|
| Loan Origination Fee (1%) | $3,500 | — |
| Appraisal Fee | $400 | — |
| Home Inspection | $500 | — |
| Title Insurance | $1,000 | $1,000 (Owner’s Policy) |
| Transfer Taxes | — | $350 |
| Attorney Fees | $800 | $800 |
| Agent Commissions (6%) | — | $21,000 |
| Escrow Prepaids | $1,200 | — |
| Estimated Totals | $7,400 | $23,150 |
Closing Costs for Cash Buyers or New Construction Homes
Cash Buyers:
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Can skip many lender-related costs
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Still responsible for attorney fees, title search, recording fees, and escrow deposits
New Construction Buyers:
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May receive builder incentives to cover closing costs
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Often required to use the builder’s preferred lender/title company for those benefits
FAQs: Closing Costs in Georgia
Who typically pays closing costs in Georgia?
Both buyers and sellers pay closing costs. Buyers cover mortgage-related and inspection fees, while sellers pay for agent commissions, taxes, and title-related services.
How much are closing costs in Georgia on average?
Buyers usually pay 2%–5% of the purchase price; sellers pay 6%–10%. A $300,000 home could mean $6,000–$15,000 for buyers and $18,000–$30,000 for sellers.
Can closing costs be negotiated?
Yes. Buyers can request seller concessions, and sellers can negotiate agent fees or buyer contributions. Many service fees are also negotiable.
When are closing costs paid?
They are due at the closing appointment, where ownership transfers from seller to buyer.
Are there closing cost assistance programs in Georgia?
Yes. Georgia offers grants and financial assistance to first-time buyers. Check with local housing authorities or speak to your lender for availability.
Understanding the full scope of closing costs in Georgia can help you plan better, budget smarter, and potentially save thousands. Whether you’re buying your first home or selling your fifth, being informed is the first step to a successful transaction.
Dekota Oechsle
With a decade of experience in commercial construction and a degree in construction management, I bring a unique perspective to my work as a REALTOR® and real estate investor. Specializing in residential, land, and investment properties, I am dedicated to helping my clients navigate the complexities of the real estate market.
What drives me is more than just transactions; it’s the relationships I build along the way. I believe in serving my clients with integrity and providing detailed, clear communication to ensure they feel confident every step of the way. My passion for real estate, combined with my extensive knowledge of construction, allows me to offer insights that are both practical and strategic.
I am committed to creating a positive experience for my clients, whether they are first-time homebuyers or seasoned investors. Together, we can turn your real estate goals into reality.
I’m here to assist you with your real estate needs; you can reach me at
770-268-0907 or via email at [email protected].