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Closing costs in Georgia
See how much you might have to fork out in closing costs when buying or selling a home in The Peach State.
In the state of Georgia, the average home price is $256,772, with buyers paying an average of 1.41% in closing costs. This means the average closing cost in Georgia in 2020 is $3,610.38 with taxes and $2,700.63 without taxes.
How much you end up paying depends on the home’s price, your credit score and if you can get seller or lender concessions. Let’s take a closer look at closing costs in Georgia and where you could save some cash.
Average closing costs in Georgia
According to research from ClosingCorp, the average closing cost in Georgia is 1.41% of the purchase price with taxes and 1.05% without taxes. These percentages may seem small, but they can quickly jump into the tens of thousands if you’re buying an expensive home.
For example, on a $250,000 mortgage, your closing costs would be $3,535 with taxes, but on a $750,000 home, that would jump to $10,575.
Closing costs stats in Georgia
|Average home sale price||$200,000 to $300,000|
|Average total closing cost||$3,610.38 with taxes and $2,700.63 without taxes|
|Expected closing cost range||$2,820 to $4,230 with taxes|
What fees make up the closing cost?
Standard closing costs
Closing costs are typically made up of the following fees. Some of these costs are set by the lender or the government. Other fees you can shop around for, like your title insurance and home inspection — representing costs where you can potentially save.
- Recording fees
- Transfer tax
- Title insurance policies — lender’s & homeowner’s
- Home inspection
- Settlement fees
Other closing costs in Georgia
Due to the risk of hurricanes, homeowners in Georgia may want to consider buying separate flood insurance and windstorm insurance policies in addition to their regular homeowner’s policy. As some homeowners have learned the hard way, standard homeowner policies don’t cover flood damage and won’t cover wind damage in high-risk states.
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Who pays closing costs in Georgia?
In Georgia, closing costs are divided between the buyer and seller, but the buyer pays the bulk of the fees and taxes. Below is a list of estimated closing costs in Georgia for home prices between $200,000 and $300,000 with 20% down. Your closing costs will vary depending on the selling price, your down payment, credit score and other factors.
For the buyer
|Loan origination fee||.5% to 1% of the loan amount|
|Loan discount points (optional)||One point = 1% of the loan amount|
|Credit report fee||$30|
|Appraisal fee||$300 to $500|
|Title search||$100 and up|
|Homeowner’s title insurance||$500 and up|
|Lender’s title insurance||$0|
|Home inspection (pests, etc.)||$150|
|Land survey fee||$250 to $500 and up, based on land size|
|Attorney and settlement fees — in GA, an attorney is legally required to close a home purchase||$450 and up|
|Transfer taxes — in GA, the seller customarily pays for this||$0|
|Postage and courier fees||$35|
|Homeowner’s insurance — 12 months prepaid at closing||$1,000 to $1,500|
|Upfront mortgage insurance premium (MIP) for FHA loans||MIP = 1.75% of the FHA base loan amount.|
|Prepaid daily interest charge — 15 days||$200 and up|
|Settlement and closing fees||$800|
|Escrow deposit for property taxes and homeowner’s insurance||$700 to $1,000|
For the seller
|Agent commission||4% to 6% of sales price|
|Postage and courier fees||$35|
|Own attorney fees||Varies|
|Title search fee||$100 to $200|
|Loan conveyance fee||$50 to $65|
|Reconveyance recording fee||$10 for the first page and $2 for each page thereafter.|
|Transfer taxes||$1 per $1,000 and 10 cents for each additional $100 in sale price.|
|Property tax — in GA, sellers must credit buyers at the time of sale||Varies|
|Seller concessions — cash to cover buyer closing costs, flood insurance for the buyer, etc.||Varies|
|Mortgage payoff||Subject to loan balance|
How much does tax affect the closing cost?
Buyers and sellers in Georgia pay an average of $909.75 in tax combined for the closing. This accounts for 25.2% of the total average closing cost in Georgia.
|Average tax paid||$909.75|
|Percentage of total closing cost||25.2%|
How do closing costs in Georgia compare nationally?
In 2020, the average closing cost for a single family home in the US was $6,087 with taxes, putting Georgia’s average closing cost of $3,610.38 well below the national average. Compared to other states, it currently ranks 29th out of 50 states for closing costs.
Next door in Florida, Alabama and South Carolina, homebuyers pay an average of $8,213, $2,370 and $3,268 in closing costs with taxes, respectively.
For information on current interest rates, see mortgage rates in Georgia.
How are closing costs paid?
Homebuyers must pay closing costs at closing. These costs typically can’t be rolled into your mortgage, as they can with a mortgage refinance. That said, you might be able to negotiate your closing costs to help reduce your out-of-pocket expenses.
Can I negotiate on my closing costs?
Yes, it’s possible. While most buyers will need to set aside cash at closing time, you can potentially reduce these costs by asking the seller or lender for concessions.
- Ask the seller if they’re willing to cover all or part of your closing costs.
- Ask the lender if they offer any closing cost discounts. Some lenders provide closing cost concessions to good credit buyers or through first-time homebuyer programs.
- Look into lender credits, which allow you to “buy up” your interest rate in exchange for the lender paying all or part of your closing costs. However, you’ll likely end up paying more in interest over the long run.
Is it possible to avoid paying closing costs?
Yes, some lenders offer no-closing-cost loans, but you’ll usually end up paying a much higher interest rate for this type of loan.
How can I pay the lowest closing costs possible?
Lenders charge wildly different fees. To ensure you’re getting the best deal possible, shop around and compare at least three or four lenders. Nearly 50% of borrowers don’t shop around and compare lenders — and this can be a costly mistake.
Closing costs in Georgia may vary quite a bit depending on the county, the type of property, down payment and your credit history. While both the buyer and seller pay closing costs, the buyer pays the bulk of the fees and taxes.
While many closing costs are fixed, aka “non-shoppable,” it’s completely possible to minimize the closing costs you can shop for by comparing brokers, title companies, attorneys and our list of the best mortgage lenders in Georgia.
Frequently asked questions
Do I need to hire an attorney for closing?
Yes, you’re legally required to hire an attorney to close on a home in Georgia.
I’m paying in cash. Do I need to pay closing costs?
If you’re buying in cash, you might not need to cover these mortgage-related closing costs:
- Appraisal fee
- Inspection fee
- Title insurance
- Mortgage insurance
- Intangible tax on mortgage
While you can skip these charges, it’s a good idea to get your home appraised and inspected and purchase a homeowner’s title insurance policy to avoid any financial problems down the road.
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