Congratulations! You are in the final stretch! However, the joy of finalizing the real estate deal brings with it the stress of financial planning. Closing costs in Georgia are a sum of expenses you should plan for when buying or selling a house.
Key Takeaways
- Closing costs or “settlement costs” are a set of final expenses paid for completing a real estate transaction.
- The seller and the buyer both pay closing costs in Georgia.
- The 3 major Seller Closing Costs in Georgia are:
- 1. REALTOR Fee
- 2. Recording Fee
- 3. Escrow Fee
- The 3 major Buyer Closing Costs in Georgia are:
- 1. Loan Origination Fee
- 2. Escrow or Impound Account
- 3. Appraisal Fee
- In Georgia, real estate transactions are usually closed by real estate attorneys.
💰 CLOSING COST CALCULATOR GEORGIA
What are Closing Costs in Georgia?
Closing costs in Georgia are a sum of fees that have to be paid to different stakeholders. Closing costs are essential for finalizing the real estate deal and transferring the ownership of the house. These settlement costs are paid in addition to the net property amount.
Who Pays Closing Costs in Georgia?
Both the buyer and seller pay certain closing costs at the end of the real estate transaction in Georgia.
The seller shells out a higher monetary amount as closing costs as they pay the REALTOR commission. Other fees, like documentation charges, transfer fees, etc., are paid by the buyer.
Some closing costs are negotiable, while others are non-negotiable, like taxes charged by your state or local jurisdiction.
Depending upon the conditions of the Georgia real estate market, the buyer or the seller can negotiate their share of the closing costs. For example, in a buyer’s market, the seller may have to bear a portion of the buyer’s closing costs.
» Is the Housing Market Going to Crash in Georgia: We explain what the Georgia real estate market will be like in 2023.
Who Pays Closing Costs on FSBO in Georgia?
While For Sale By Owner (FSBO) property sellers do not have to pay heavy real estate agent commissions, they cannot completely escape closing costs. Some of these are:
1. Transfer Tax Georgia
Transfer tax is charged by the state and/or municipality before the ownership change of hand from the seller and the buyer. In Georgia, real estate transfer tax is imposed at the rate of $1 per $1,000 of the property value.
2. Seller’s Attorney Fees
The state of Georgia mandates the presence of a real estate attorney at closing.
A real estate attorney guides the seller in preparing the necessary documents like seller disclosure and drafts of other legal paperwork. Real estate attorneys may typically charge a fee of $150-$350 per hour.
3. Pre-listing Appraisal
FSBO sellers may have to invest in the pre-listing appraisal, as it would help them find an appropriate buyer in less time. This will, in turn, lower the number of days on the market and make the sale faster. The cost of home appraisal in Georgia usually ranges from $300-$600.
How Much are Closing Costs in Georgia?
Sellers closing costs in Georgia are approximately 5%–10% of the home’s agreement value, while the buyers are expected to pay around 2%–5% of the home’s purchase price.
Let’s put this in perspective! The median home value in Georgia is $323,991. So, if you are selling a house in Georgia, you may have to pay $16,199- $32,399 as closing costs. On the other hand, if you are buying a house in Georgia, your closing costs may range from $6,479 to $16,199.
How Much are Closing Costs for Sellers in Georgia?
As mentioned above, when selling a house in Georgia, you will have to pay some closing costs to transfer the house ownership to the buyer legally. These costs include several fees that need to be paid over and above the net price of the property.
Some seller closing costs are negotiable. Real estate agents in Georgia usually have information about who pays what at closing and can help you save on closing costs.
Here are some of the typical seller closing costs in Georgia.
1. REALTOR Fees Georgia
The seller pays real estate commissions to both the listing agent and the buyer’s agent. The average commission for a real estate agent in Georgia usually amounts to 5%-6% of the agreement value. According to the current typical home value, realtor commission in Georgia may amount to $16,000-$19,500.
» How To Negotiate Real Estate Commission: Check out this blog to find how to negotiate REALTOR commissions like a pro!
2. Recording Fees
The recording fee is paid by the seller to make the real estate transaction a matter of public record. In Georgia, the average recording fee is $25.
3. Escrow Fee
An escrow agent is an unbiased third party who helps you and the buyer complete the transaction. They clear the house for sale, transfer the ownership to the buyer, and the respective funds to the seller.
The escrow fee is the remuneration charged by the escrow agent for their services. Escrow firms in Georgia typically charge 1% of the sales price as fees.
4. Home Inspection Fee
Sellers can opt for a GA state inspection to identify any major defects and issues, like plumbing issues, water damage, mold, appliance malfunction, etc., in the house that they must resolve before selling.
This can be done before the property is listed on the market (pre-inspection) or just before the closing. The average home inspection cost in GA ranges from $350-$500.
The buyer can also undertake a home inspection. However, if the best home inspector Georgia finds undisclosed defects, it might give the buyer an upper hand during negotiations, or they may back out of the deal.
» Typical Seller’s Closing Costs Georgia: Here is a detailed breakdown of closing costs to sell a home in Georgia.
How Much are Closing Costs for Buyers in Georgia?
These are the closing costs paid by the buyer while acquiring the property ownership from the seller. Like seller closing costs, these too are negotiable. Hence, hiring a buyer’s agent can help you save on closing costs.
We have listed some of the typical buyer closing costs in Georgia.
1. Loan Origination Fees
Some mortgage lenders in GA charge buyers a loan origination fee to execute the loan with other respective documentation and legal formalities. The loan origination fee in GA usually amounts to 0.5%-1% of the mortgage loan amount.
2. Appraisal Fees
Appraisal fees are paid to the professional appraiser who asses the home value and ensures you get the best competitive price.
The cost for home appraisal in Georgia varies from $350 to $500 depending on the property characteristics like its actual saleable area and its geographical location.
3. Title Insurance
A title company offers title policy in Georgia to protect the insurer against any type of loss with respect to any outstanding taxes, unpaid dues, default in the title, or any violations. The average owner’s title insurance cost in Georgia is $830, and that of lender’s title insurance is $550.
» Typical Closing Costs for Buyer in Georgia: Here is a detailed breakdown of the customary buyer closing costs in GA.
How to Calculate Closing Costs in Georgia?
It is important to calculate closing costs while selling a house or buying one.
The estimated closing costs give sellers an idea about the home equity they will have after the sale and helps buyers find out the amount they will have to pay over and above the agreement value of the house.
» Closing Cost Calculator: Check out the closing costs calculator estimate closing costs in Georgia for your real estate transaction.
How to Calculate Closing Costs for Seller?
Houzeo’s Home Sale Calculator helps calculate closing costs for sellers in Georgia with a swish and a click! All the sellers have to do is enter their property location, home sale price, mortgage payoff, seller agent commission, and buyer agent commission, and voila!
The Seller Closing Cost Calculator even gives sellers an estimate of their home inspection fee and home warranty fee. With the help of this home sale proceeds calculator, sellers can find out their home equity and be prepared for closing.
» Seller Closing Cost Calculator for Georgia: Check out the seller closing costs calculator to calculate the estimated closing costs for seller in Georgia.
How to Calculate Closing Costs for Buyer?
Houzeo’s Buyer Closing Cost Calculator helps calculate closing costs for buyers in Georgia. To find the estimated buyer closing costs, the buyers have to add the property location, home purchase price, and the down payment in the buyer closing cost estimator.
The closing cost calculator for buyer gives a detailed list of the buyer’s estimated closing costs.
Home buyers can find out everything right from origination fee, appraisal fee and survey fee to title search, attorney fee, recording fee, prepaid interest charges, escrow property taxes, and owner’s title insurance.
The Gerogia Buyers Closing Cost Calculator even shows which fees have to be paid before closing and which ones have to be paid at closing while buy a house in Georgia.
» Georgia Buyer Closing Cost Calculator: Check out the closing costs calculator for buyer to calculate the estimated closing costs for buyer in Georgia.
Closing Costs in Georgia for Refinance
Before we dive into closing costs for refinance, let’s look at the term refinance:
What is Refinancing?
Refinance, also called “Refi,” is nothing but replacing your current loan with one that offers a lower rate of interest. This helps lower monthly mortgage payments.
How Much are Refinancing Closing Costs in Georgia?
Refinancing closing costs are the sum of several expenses paid against any services that were used in the process of underwriting and closing on your mortgage loan, which makes up 3%-5% of the mortgage amount.
The closing cost for refinancing would vary with respect to the property’s location.
Junk Closing Costs to Watch Out For
Junk costs are the additional costs that are imposed by the mortgage lender. These are usually excessive but can be challenged and negotiated for a fairer price. Some of these are:
- Application Fee: The buyer pays this fee to the lender when applying for the mortgage. Not all lenders charge an application fee.
- Loan Processing Fee: This fee is charged by the lender to execute the loan once it has been approved. Borrowers can negotiate for these charges to be waived.
- Mortgage Rate Lock Fee: This fee is a guarantee that the lender will honor the pre-agreed interest rate for a said amount for a set period.
- Underwriting Fee: Mortgage underwriters charge underwriting fee to evaluate and verify loan applications. It is a non-recurring fee. Some lenders charge it in place of the originating fee, while others charge it in addition to the same.
- Courier Fee: A fee of $20-$50 is typically charged in order to cover the courier transactions.
Note: The costs vary by region.
Conclusion
The closing cost in Georgia is the mandatory fee that needs to be paid by the seller & the buyer. This is paid over and above the mortgage loan amount. Where the buyer pays 2%-5% and the seller pays 5%-10% against their share of the closing cost.
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Houzeo’s customer-centric approach, advanced technology, and flat fee packages make it an ideal choice for those looking to avoid paying high commissions and closing costs. It is the best company for flat fee listing in Georgia.
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Find Your New Home With Houzeo
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Also Read
- Who Usually Pays Closing Costs in Georgia: Closing Costs in GA can vary according to the type of real estate deal. Find out which closing costs you are responsible for.
- Title Insurance Premiums in Georgia: Protect your real estate investment with title insurance.
- MLS Flat Fee Georgia: Flat Fee MLS companies in Georgia can help you save thousands on commission fees. Read the curated list of the best companies near you.
- Cash Buyers for Homes in Georgia: Companies that buy houses for cash in Georgia ensure fast closings and offer instant cash deals. Who’s the best real estate cash buyer in 2023? Read on!
- How to Sell My House for Cash Georgia: Find out the different ways to sell your Georgia house fast for cash.
- Ways to Sell a Home Fast Georgia: There is more than one way for selling your house fast in Georgia. Read on to find out more.
- Selling a Home As Is in Georgia: Check out how you can sell your house as is in Georgia.
- How To Sell a House without a Realtor in Georgia: If want to sell your Georgia house on your own, check out this guide to help you through the process.
- How To List on the MLS: List your home on the MLS yourself without hiring a real estate agent.
- Georgia Real Estate Form: Check out how to create a contract for an FSBO transaction.
- For Sale by Owners Websites: These websites can help you market your property to prospective buyers directly.
Additional Resources
- Top Real Estate Companies in Georgia: Here are the top real estate companies in Georgia that can help you with all your real estate needs.
- Best Real Estate Websites Georgia: Find out which are the best real estate websites in Georgia that can help you crack a smooth real estate deal.
- Licensed REALTORS in Georgia: There are thousands of REALTORS in Georgia. Check out this blog to find the best one for you.
- Top Real Estate Brokers in Georgia: Real estate brokers in Georgia can help buyers and sellers with a hassle-free real estate transaction.
- Discount Realtors in Georgia: Discount REALTORS in Georgia can help you sell your house at a low commission.
- Seller’s Property Disclosure Statement Georgia: Check out the disclosure requirements for selling your house.
- How to Stop Foreclosure in Georgia: Read on to find how you you stop your property from going into foreclosure.
- Best Time to Buy a House in Georgia: Check out if it’s the best time for you to buy a house in Georgia.
Frequently Asked Questions
1. How much are closing costs in Georgia?
The closing cost in Georgia for buyers are approximately 2%–5% of the home’s agreement value. While the sellers are expected to pay around 6–10% of the home’s purchase price. For sellers, that includes the agency commission too.
2. How much are closing costs in Georgia for buyer ?
The buyer closing costs are the charges paid by the buyer while acquiring the property ownership from the seller. These charges included several fees that need to be paid over and above the agreement amount and are negotiable too. Hence, you would need the best listing agent that would benefit you in this deal.
3. How much are closing costs in Georgia for seller ?
The seller closing costs are the charges paid by the seller while transferring the property ownership to the buyer. These charges included several fees that need to be paid over and above the agreed amount and are negotiable too. Hence, you would need the best listing agent that would benefit you in this deal.
4. Who pays transfer tax in Georgia?
The seller usually pays transfer tax in GA. However, it depends on the contract negotiations.
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