Buyer's Guide
Closing Costs in Georgia
When you buy a home in Georgia, you pay more than the purchase price on closing day. This guide covers what closing costs typically look like for a Georgia buyer, which costs are negotiable, and how transfer tax works under Georgia law.
Educational guide only. This page is for general informational purposes and does not constitute legal, lending, or tax advice. Closing costs vary by transaction, lender, property, and contract terms. Consult your lender, closing attorney, and tax adviser for guidance specific to your situation.
Typical buyer costs
What buyers commonly pay at closing in Georgia
Georgia closings are conducted by a licensed real estate attorney. The attorney coordinates the closing, renders a title opinion, and records the deed and security deed. The costs below are typical buyer obligations in a Georgia purchase transaction. Actual amounts vary by transaction.
| Cost item | Typical range | Notes |
|---|---|---|
| Loan origination fee | 0 to 1% of loan amount | Lender charge for processing the loan. Some lenders offer no-origination-fee structures at a higher interest rate. |
| Discount points | Optional, 0 to 2% of loan | Prepaid interest to buy down the mortgage rate. Each point equals 1 percent of the loan amount. |
| Appraisal | $450 to $700 | Required by most lenders to verify the property value. Ordered by the lender, paid by the buyer. |
| Credit report | $25 to $75 | Lender's cost to pull your credit report. Often rolled into the application fee. |
| Lender's title insurance | Based on loan amount | Protects the lender against title defects. Required by nearly all lenders. Georgia rates are filed with the state. |
| Owner's title insurance | Based on purchase price | Protects the buyer against title defects. Optional but strongly recommended. Often negotiated so the seller pays. |
| Title search | $150 to $350 | Fee to search public records and verify clear title. Performed by or on behalf of the closing attorney. |
| Attorney fees | $600 to $1,200 | Georgia closings are conducted by a licensed real estate attorney. Fee covers the closing, title opinion, and document preparation. |
| Recording fees | $10 to $20 per page | Charged by the county clerk to record the deed and security deed in the public record. |
| Homeowners insurance | Varies by policy | Lenders require proof of coverage before closing. The first year's premium is typically paid at or before closing. |
| Prepaid mortgage interest | Prorated to month-end | Interest from the closing date through the last day of the closing month. Collected because your first regular payment covers the following month. |
| Property tax proration | Varies by closing date | Georgia property taxes are paid in arrears. The seller typically credits the buyer for their prorated share at closing. |
| HOA transfer and estoppel | $150 to $500+ | If the property is in an HOA, the association may charge fees to transfer membership and produce payoff documentation. |
| Home inspection | $350 to $550 | Paid to a licensed inspector before closing. Not a lender requirement but standard practice and strongly recommended. |
Transfer tax: generally the seller's obligation
Georgia real estate transfer tax (O.C.G.A. § 48-6-1) is levied at $1.00 per $1,000 of value (or fraction thereof) above $100. Under Georgia law, the tax liability falls on the grantor, which is the seller. Parties may allocate it differently by written contract. Your closing attorney will confirm which party is paying transfer tax based on the terms of your purchase agreement.
Loan Estimate and Closing Disclosure
Federal law (RESPA/TRID) requires your lender to provide a Loan Estimate within three business days of your application. You will receive a Closing Disclosure at least three business days before your scheduled closing. The Closing Disclosure shows the final itemized costs. Compare it to your Loan Estimate and ask your lender to explain any differences before closing day.
Seller concessions
How seller concessions work
A seller concession is a negotiated credit toward the buyer's closing costs. They are common and legal, but subject to lender limits based on loan type and down payment.
What seller concessions are
A seller concession is an agreement in the purchase contract for the seller to contribute a specified amount toward the buyer's closing costs. The concession reduces the net proceeds the seller receives at closing.
How they are structured
Concessions are expressed as a dollar amount or a percentage of the purchase price and must stay within limits set by the buyer's lender and loan type. They appear on the Closing Disclosure for both parties.
When they make sense
Concessions are more common in buyer-favorable market conditions or when a buyer wants to preserve cash after closing. A buyer asking for concessions typically offers at or near list price to make the net acceptable to the seller.
What they cost the seller
A seller concession reduces the seller's net proceeds by the concession amount. A $5,000 concession on a $400,000 sale means the seller nets $5,000 less, which may affect the seller's ability to pay off a mortgage or meet a minimum net requirement.
Get a clearer picture before you make an offer
Closing cost estimates become more precise once you have a lender quoting your specific loan and a property in mind. Peter can walk you through what to expect based on your price range, financing status, and timeline, and help you understand what is negotiable in the current market.
FAQ
Closing cost questions
A common estimate is 2 to 5 percent of the purchase price, but your actual total depends on your loan type, lender origination structure, the purchase price, title insurance on your specific transaction, and any items negotiated with the seller. Your lender is required to provide a Loan Estimate within three business days of your application showing itemized cost estimates.
Most of the items in this guide are typical buyer obligations: lender fees, appraisal, title insurance, attorney fees, and prepaids. Georgia transfer tax (O.C.G.A. § 48-6-1) is generally the seller's obligation under Georgia law, though the parties may allocate it differently by contract. Your closing attorney will confirm the allocation for your specific transaction.
Under Georgia law (O.C.G.A. § 48-6-1), transfer tax liability falls on the grantor, which is the seller. Some purchase contracts allocate it to the buyer by agreement. Your closing attorney will review the contract terms and confirm which party is paying it at your closing.
Prepaids are funds collected at closing for upcoming obligations: your homeowners insurance premium, prepaid mortgage interest from the closing date to the end of that month, and your initial property tax escrow deposit. They are not fees paid to service providers. Their amount depends on your closing date, lender escrow requirements, and your insurance policy.
Yes. Seller concessions can cover a portion of the buyer's closing costs, subject to lender limits. Conventional loans typically allow 3 to 9 percent of the purchase price depending on down payment size. FHA allows up to 6 percent. VA allows up to 4 percent plus certain fees. The concession amount and structure are negotiated in the purchase contract.
Yes. Georgia law requires a licensed real estate attorney to conduct the closing and render a title opinion. The attorney fee and title search are standard line items in Georgia buyer closings. The buyer typically selects the closing attorney in Georgia transactions, though practices can vary by transaction.
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