How Much Are Closing Costs in Georgia?

Yes, we get it. You are excited about buying your new home in Georgia and anticipate moving there as soon as possible. However, have you heard about closing costs? As a responsible and informed homebuyer, you should know that closing costs are part of the homebuying process.

This blog was written to help you navigate the closing of your newly bought property. We will help you understand closing costs and how much are closing costs in GA.

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What Are Closing Costs?

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Closing costs are the extra costs of completing the purchase or sale of property. These fees are settled at the end of the sale before the key is handed to the new owner. They consist of various fees and expenses incurred by purchasers and sellers during the closing.

Curious how much are closing costs in Georgia? The average closing cost in Georgia is 1.3% of the property’s sale price. But, the individual costs may vary sometimes depending on the property’s complexities.

Every home is unique, and there might be existing issues that could affect the closing cost a seller or buyer should pay.

But are closing costs really important? Yes! The sale of a property will not proceed if closing costs are not settled. These are the final expenses that will finalize the sale.

Closing costs such as loan-related fees, prepaid expenses, government fees, and ownership transfer fees are all important to ensure the validity and legality of the sale. These fees help protect the seller and buyer from risks like title and property issues.

Typical Closing Costs for Buyers in Georgia

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Loan-Related Fees

Loan-related fees are costs related to the buyer’s mortgage loan. In this context, the borrower, the homebuyer, usually pays these fees as part of the closing costs incurred during the mortgage application process.

Loan Origination Fee

In Georgia, it is common for the buyer to shoulder the loan origination fee. The lender collects this fee to complete the loan application and issue the loan for the property. Loan origination fees in Georgia might vary; however, they typically range approximately between 0.5% and 1% of the loan value.

Credit Report Fee

A credit report fee is part of a buyer’s closing costs. Lenders charge a fee to access a borrower’s credit report when evaluating their creditworthiness. In Georgia, this cost might vary from $25 to $60.

Appraisal Fee

An appraisal fee is needed to determine the property’s fair market value. This fee is how much you will pay for a professional home appraiser. Lenders ask this to determine if the property is worth the loan amount. It costs $300 to $600 in Georgia.

Underwriting Fee

This fee pays for the underwriting expenses incurred by the lender in evaluating the borrower’s creditworthiness and loan eligibility. This fee ranges from $250 to $850.

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Prepaid Expenses

Prepaid Interest

Prepaid Interest is paid in advance at the time of mortgage loan closing to cover the time between the loan disbursement date and the end of that particular month.

This closing cost is computed according to the loan amount and interest rate of the buyer/borrower. To calculate, use this formula:

Prepaid Interest = Loan Amount x (Annual Interest Rate / Number of days in a year) x Number of days between the loan funding date and end of the month

Escrow Account Funds

The buyer deposits these funds to pay for upcoming insurance and property taxes. The Georgia escrow fee costs 1% to 1.3% of the property’s sale price.

Homeowners Insurance

Insurance shields homeowners against monetary losses brought on by harm or destruction to their property and belongings. It typically costs $1000 to $2000 annually.

Government Fees

Recording Fees

The county recorder’s office will collect these costs to record the new deed and other necessary legal documents on the property transfer. It usually falls between $25 and $50.

Transfer Taxes

These are taxes the government imposes on transferring property ownership in Georgia. The transfer tax rate in Georgia is currently $0.10 per $100.

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Miscellaneous Fees

Attorney Fees

Attorney fees include hiring a closing attorney to ensure that all legal requirements in the sale are met. The attorney does not represent the buyer or the seller in the transaction. Settlement fees for employing a closing attorney can run from $500 to $1,500.

Title Insurance

Title insurance shields the seller and buyer from any flaws or problems related to the property’s title. It guarantees that the property is clearly transferred to the buyer. It costs around 0.5% to 1% of the property’s asking price.

Survey Fee

The survey fee covers hiring a qualified land surveyor to measure and chart the property’s borders, easements, and other significant land characteristics.

The survey can assist in locating any encroachments or boundary disputes and guarantees that the property’s borders are precisely identified. This fee costs from $300 to as high as $900.

Typical Closing Costs for Sellers in Georgia

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Real Estate Agent Commissions

A real estate agent commission in Georgia costs an average of $18,475, based on the average property value of $317,982. Working with a realtor costs Georgia property sellers an average of 5.81% of the selling price.

Ownership Transfer Fees

Title Search Fees

The title search fee is the cost of investigating the property’s title record to ensure the seller is authorized to sell it and that no claims are pending. Title search fees in Georgia can start from $35, depending on the search type.

Transfer Taxes

The transfer tax rate in Georgia is currently $0.10 per $100. So, for instance, if the purchase price of the home is $250,000, then the estimated amount of transfer tax is computed as follows:

  • Transfer tax = (Purchase price / 100) * Transfer tax rate

Transfer tax = ($250,000 / 100) * $0.10
Transfer tax = $250 * $0.10
Transfer tax = $25

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Additional Seller Expenses

In Georgia, a seller still shoulders other closing costs, including attorney fees and a home warranty. These two expenses ensure the credibility and validity of the sale, providing security for both seller and buyer.

Home Warranty

Home warranties often cover certain home appliances and systems from normal wear and tear for a set amount of time. Homebuyers should always carefully analyze the conditions of any house warranty to identify what is and is not covered.

The seller could be willing to pay for a house warranty as an incentive or to reassure the buyer about the property’s condition.

Regarding who pays closing costs in Georgia, it is typically split between the two parties. Most of the time, it all comes down to the negotiation and agreement of the seller and buyer.

Whether you are a homebuyer or a home seller, the abovementioned closing costs may help you prepare for a home sale’s closing.

Wrap Up

Congratulations in advance on your new home! We hope that this blog will help you acquire your dream home. Homebuying may be long and tiring, but the results will always be rewarding.

Closing costs may be overwhelming, but they are essential in every house purchase. Knowing about them before the actual closing of the property you plan to buy will significantly help you make informed choices.

We are as excited as you are about your homebuying journey in Georgia!

Allow us to take care of your closing costs so you can focus on your move! Book an appointment with our team at your earliest convenience! You may reach us by calling 404-512-1007 or emailing

Frequently Asked Questions

The seller and buyer can pay the closing costs. The seller may offer to pay some closing costs, so knowing these expenses and having sharp negotiation skills will help better navigate the closing costs process.

Yes. Closing costs need to be settled. They are vital in closing the sale.

Georgia offers assistance programs to help with closing costs; look into local grant or loan choices.