What Are Closing Costs in Georgia? A Complete Guide for Buyers and Sellers

In Georgia, buyers are typically responsible for the majority of closing costs, but everything is negotiable and must be clearly written into the contract. Closing costs are not fixed, and who pays what can shift based on market conditions, loan type, and negotiated terms.

Georgia is an attorney-closing state, meaning a real estate attorney oversees the transaction and disburses all funds at closing.

Typical Closing Cost Ranges in Georgia

Buyers

About 2%–4% of the purchase price
(This is NOT the down payment for the loan. It is in addition to the down payment.)

Buyer closing costs include lender fees, attorney fees, title costs, prepaid items, and escrows. Even buyers putting zero down on a VA loan will still have closing costs unless negotiated otherwise.

Sellers

About 6%–10% of the sale price, depending on negotiated terms, commissions, and concessions.

Buyer Closing Costs Explained (Clarified)

Buyers should plan for closing costs separate from their down payment. These costs are due at closing and cannot typically be rolled into the loan unless the purchase price and appraisal support it.

While sellers may agree to help with buyer closing costs, buyers should never assume seller-paid costs unless clearly negotiated and written into the contract.

Seller Closing Costs in Georgia (Updated for Current Rules)

Real Estate Commission (Important Update)

Historically, sellers paid the full real estate commission, including the buyer’s agent. As of August 17, 2024, sellers are no longer automatically responsible for paying buyer brokerage compensation.

However, this does not mean buyer representation disappears from the transaction.

Here’s what sellers need to understand:

• Buyer agents must now have written agreements with their buyers

• Buyers may be responsible for paying their own agent

• Sellers can still choose to offer buyer broker compensation as part of their marketing strategy

• Offering compensation is optional, but refusing to consider it can limit buyer interest

Many buyers either cannot or will not pay their agent out of pocket. When compensation is not offered, some buyers may skip the property entirely or have less flexibility in negotiations.

For this reason, sellers should think of buyer broker compensation as a marketing expense, not an obligation. Properties that are more attractive to buyers’ agents often receive more showings, more interest, and stronger offers.

What Sellers Commonly Pay

• Listing brokerage compensation (negotiated in the listing agreement)

• Prorated property taxes through the day of closing

• Any negotiated seller concessions

• HOA transfer fees (if applicable)

Why Everything Is Negotiable in Georgia

Georgia real estate contracts allow flexibility. Closing costs can be structured in many ways, including:

• Seller-paid buyer closing costs

• Buyer-paid buyer broker compensation

• Seller-paid buyer broker compensation as a concession

• Credits in lieu of repairs

• Price adjustments to offset costs

There is no one-size-fits-all approach, and strategy matters more than ever in today’s market.

Key Takeaways for Buyers and Sellers

• Buyer closing costs are separate from the down payment

• Buyers usually pay their own closing costs unless negotiated otherwise

• Sellers are not required to pay buyer brokerage after August 17, 2024

• Buyer broker compensation is now a strategic decision, not an automatic fee

• Clear communication and strong contract language are critical

• The way closing costs are structured can directly impact buyer interest and final net proceeds

Final Thoughts

Closing costs are not “hidden fees”. They are the cost of legally transferring property and protecting everyone involved. The key is understanding them early, planning for them properly, and negotiating strategically.

Buyers should review their Loan Estimate carefully and ask questions early. 

Education and preparation make the difference between a stressful closing and a smooth one.

If you’d like a personalized estimate based on your specific situation in Georgia, reach out, every transaction deserves clarity and confidence.