Whether you’re selling a modern condo in Atlanta’s Midtown or a century-old property in Savannah’s Historic District, you need to know the closing costs sellers are responsible for in Georgia. The last thing you want is sticker shock when you review these subtractions in your seller’s settlement statement.
Closing costs in Georgia typically range 5% to 10% of the home’s sale price. For example, closing costs for a $366,000 home run between $18,300 to $36,600, depending on your location and arrangement with the buyer.
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For a deep dive on Georgia closing costs, we partnered with top Brunswick listing agent Valerie Burnett, who completes more sales than the average Brunswick agent by 25%. We’ll break down customary sellers’ closing costs, plus some additional costs that are negotiable.
The average cost to sell a home in Atlanta is $34,170
HomeLight’s recent study reveals that it costs $34,170 on average to sell a $500,000 home. This total cost includes:
- Prep costs: $6,870 for pre-listing home improvements such as lawn care, painting, staging, and more
- Commission: $15,000 for the listing agent
- Taxes and fees: $12,300 for the transfer, tax, title fees, and escrow fees which we’ll detail below
Not in Atlanta? You can estimate your home sale takeaways after closing costs with HomeLight’s Net Proceeds Calculator for whatever city you live in.
Seller’s closing costs in Georgia
Although many closing costs are negotiable, sellers in Georgia are traditionally on the hook for the following:
1. Loan payoff amount
You must pay off your mortgage before you transfer the title to your house. Loan payoff includes the remaining principal and interest owed up until closing.
2. Property taxes
In Georgia, homeowners pay property taxes in arrears; property-tax bills are due December 20 in most counties. The Department of Revenue states, “If you owned property on January 1, you are responsible for the ad valorem tax for the entire year even if you sell the property on January 2. Georgia law does not allow a refund for partial year residents.”
It’s customary for the buyer to pay the property taxes for the entire year in which they purchased the home, even if the seller’s name is still on the bill. However, sellers credit the buyer with prorated property taxes for the months they owned the property. At the end of the year, the buyer pays the county the entire year’s property taxes, subsidizing the bill with the seller’s credit.
“[The buyers] will have to catch up from the previous year. If you sell in June, they’re going to take your taxes up to that point. The day that you close will be included in that,” Burnett clarifies.
She warns sellers to watch out for a savvy buyer who tries to lower the selling price if they notice the tax bill went up during annual property tax rate increases. “We often encourage [sellers] to keep an eye on that. It’s rare but can happen,” she says.
3. Loan reconveyance fee
Once you’ve paid the mortgage balance, you’ll receive a reconveyance deed as proof. The seller is responsible for paying the fees for the new deed to the mortgage company; on average, reconveyance fees run between $50 to $65.
4. Reconveyance recording fee
You also need to file the reconveyance deed with the county recording office. In Georgia, the seller will sometimes cover this fee. Counties typically charge a flat fee of $25.
5. Title search fee
After you accept the buyer’s offer, an attorney performs a title search to ensure the property is free and clear of liens or other conflicts of ownership. On average, title search fees run between $100 to $300. Who covers this fee is up for negotiation.
6. Title insurance
Title insurance protects the buyer against any future claims of ownership; the title company that runs the search issues both the buyer and the buyer’s lender title insurance policies.
Title insurance costs vary depending on the value of the home, amount of coverage, and the upfront services performed. On average, title insurance costs between 0.5% and 1% of the purchase price, accounting for both the lender’s and owner’s policies.
In Georgia, it’s customary for the buyer to cover the lender’s policy. Who pays for the owner’s policy, on the other hand, is up for negotiation.
7. Transfer tax
Georgia requires sellers to pay a transfer tax before they record the deed. The state transfer tax rate amounts to $1 per $1,000 and 10 cents per additional $100 of the sale price. For example, the transfer tax for a home that sold for $550,000 would be $550.
8. Agent commission
The national average for agent commissions ranges between 5% and 6% of the home’s sale price, and the seller may have to pay around 3% for the listing agent fee or around 6% to cover both the listing agent and buyer’s agent fee. This will depend on the negotiation between the listing agent and the buyer’s agent, or whether the seller wants to offer to pay for the buyer’s agent fee to help the property stand out.
9. Unpaid homeowner’s association and condominium dues
The seller must pay all outstanding HOA or condo dues. If fees are annual, Burnett shares that some sellers prorate the fee according to the time of the sale, while others cover the fee for the buyer as a concession or deal sweetener.
10. Seller concessions
Speaking of concessions, it’s common for the seller to owe money at closing for financing items they agreed to pay for during the negotiation process in order to close the sale. Examples of concessions include cash to cover closing costs, necessary repairs, and home warranties. Burnett shares that it’s particularly common for Georgia sellers to offer these region-specific concessions:
Termite bonds
Since termite issues are common in Georgia, some sellers offer to pay for a termite bond, which works sort of like a maintenance contract with a termite company. The bond covers the cost of inspections, treatments, and repairs for the length of the contract, typically one to two years.
The average cost for a termite bond falls between $500 and $2,000. Because termite inspections typically cost between $75 and $150, and removal fees range from $225 to $2,500, many Georgia homeowners don’t think twice about purchasing a bond.
Flooding insurance
In Georgia, flood insurance is common for homeowners to purchase, although it’s not required. The average cost for a flood insurance policy is $888 per year, though prices range depending on your flood risk. Some sellers opt to pay for the policy’s first year to seal the deal.
You’ll review the final tally at closing
If you’re feeling overwhelmed keeping track of these closing costs, relax. You’ll receive an itemized list of all fees and credits in the seller’s settlement statement at closing. This document will also detail your net profit and summarize the agreement of the sale.
DISCLAIMER: This article provides an estimate of a seller’s closing costs that is meant for educational and research purposes only; our calculation is not a guarantee.
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