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How Much Are Closing Costs in Georgia?

Hand businessman doing finances on closing cost mortgage in georgia

Are you considering buying a home in Georgia? If so, it’s crucial to have a clear understanding of the financial aspects involved, including the ever-important closing costs.

You might be wondering, how much are closing costs in Georgia? Well, you’ve come to the right place! In this article, we’ll delve into the world of closing costs, providing you with valuable insights and useful information to help you navigate this aspect of the home-buying process.

When purchasing a home, it’s essential to be prepared for the various expenses that come with it, and closing costs are a significant part of that equation. These costs encompass a range of fees and charges that buyers and sellers incur during the property transaction.

From lender fees to title fees, escrow fees, and more, the expenses can add up. Understanding the breakdown of closing costs in Georgia will empower you to make informed financial decisions and plan accordingly.

What are Closing Costs?

Closing costs are the fees and expenses that homebuyers and sellers must pay during the property transaction process. These costs cover a wide range of services, such as lender fees, title fees, escrow fees, and various taxes. When purchasing a property in Georgia, understanding closing costs is essential for both buyers and sellers.

Who Pays Closing Costs in Georgia?

In Georgia, both homebuyers and sellers are responsible for different portions of closing costs. Typically, buyers pay for the majority of closing costs, while sellers cover specific fees such as the REALTOR fee and a portion of property taxes. However, closing costs can be negotiated between the buyer and seller, so it’s essential to communicate with your real estate agent to ensure a fair distribution of costs.

How Much are Closing Costs for Sellers in Georgia

Sellers in Georgia can expect to pay closing costs ranging from 6% to 10% of the home’s sale price. These costs include the following fees:


A REALTOR fee, also known as a commission, is paid by the seller to both the buyer’s and seller’s real estate agents. In Georgia, the average commission rate is 6% of the home’s sale price, split between the two agents.

Recording Fee

Recording fees cover the cost of officially documenting the property transfer in the county records. In Georgia, recording fees can range from $10 to $50, depending on the county.

Escrow Fee

The escrow fee is paid to the escrow company for managing the funds during the transaction. In Georgia, escrow fees typically cost around 1% of the home’s sale price.

Home Inspection Fee

Sellers may also be responsible for a home inspection fee if they agree to conduct a pre-sale home inspection. This fee can range from $300 to $500 in Georgia.

How Much are Closing Costs for Buyers in Georgia

Buyers in Georgia can expect to pay closing costs ranging from 2% to 5% of the home’s purchase price. These costs include the following fees:

Homeowner Fees

Homeowner fees may include homeowner association (HOA) fees, property taxes, and homeowner’s insurance. These costs can vary greatly depending on the property and location.

Lender Fees

Lender fees cover the costs associated with processing and underwriting the mortgage loan. These fees typically include loan origination fees, discount points, and appraisal fees. In Georgia, lender fees can range from $1,000 to $3,000.

Third Party Fees

Third-party fees are charges for services provided by external companies during the property transaction, such as title search, title insurance, and attorney fees. In Georgia, third-party fees can range from $500 to $2,000, depending on the services required.

How are Closing Costs Calculated?

Closing costs are calculated based on a combination of factors, including the property’s value, loan type, location, and the individual fees associated with the transaction. In Georgia, closing costs typically range from 2% to 5% of the home’s purchase price. To estimate your closing costs, you can use online calculators or consult with your real estate agent, lender, or attorney, who can provide a more accurate estimate based on your specific situation.

Closing Costs in Georgia for Refinance

Refinancing a mortgage involves replacing your current mortgage with a new one, often to secure a lower interest rate or different loan terms. In Georgia, closing costs for refinancing typically range from 2% to 3% of the loan amount. These costs may include lender fees, title fees, appraisal fees, and attorney fees. It’s essential to weigh the potential savings from refinancing against the closing costs to determine if it’s a financially sound decision for you.

Junk Closing Costs to Watch Out For

When reviewing your closing costs, it’s crucial to be aware of “junk” fees that some lenders or service providers may charge. These fees are often unnecessary or inflated and can significantly increase your closing costs. Common junk fees to watch out for include:

  1. Administrative or processing fees: These fees can range from $100 to $500 and are charged for handling paperwork or processing the loan. Be sure to inquire about these fees and consider negotiating or shopping around for a lender with lower fees.
  2. Application fees: Some lenders may charge an upfront fee for processing your loan application, which can range from $200 to $500. However, not all lenders charge this fee, so it’s worth comparing different lenders to find one without an application fee.
  3. Courier fees: These fees, typically ranging from $25 to $100, cover the cost of transporting documents during the closing process.

How are Closing Costs Calculated?

Calculating closing costs is an essential step in understanding the financial implications of buying a property. On average, closing costs typically range from 0.5% to 5% of the total loan amount. In Georgia, the average closing costs amount to $1,897 for a $200,000 mortgage. This translates to just under 1% of the loan amount, slightly surpassing the national average of $1,847. It’s important to note that these figures can vary depending on factors such as the loan amount, property value, and specific location within Georgia.


As an experienced professional in the mortgage loan and property market, Help individuals and families achieve their homeownership dreams.  My mission is to simplify your real estate journey and secure the best possible outcomes in this ever-changing market.

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