Whether you are selling a townhome or a tiny fixer-upper, there is a very strong chance you will need to deal with closing costs. Here is a breakdown of the closing costs that come with selling a house in the state of Georgia, what Atlanta sellers can expect to pay at closing, some strategies for lowering seller closing costs, and how you can reduce or avoid closing costs with an off-market buyer.
Standard closing costs when selling a house in Atlanta
In addition to paying off the principal and interest on the mortgage, there are several closing costs that you will usually be responsible for. Additionally, sellers sometimes agree to pay buyer’s closing costs to keep the sale running smoothly.
Here is a list of common closing costs for Atlanta real estate transactions:
- Loan reconveyance fee: A reconveyance deed is proof that you paid off your mortgage, and the seller is usually responsible for paying this fee. The normal cost is between $50–$65.
- Reconveyance recording fee: Either you or the buyer will need to file the reconveyance deed with the county recording office. Expect a flat fee of around $25.
- Title search fee: The title search fee ensures that the title is free of liens and other ownership conflicts. This can be paid by the buyer or the seller and costs between $100–$300.
- Title insurance: Title insurance protects the owner from financial loss if the house has liens or judgements against it. It also protects the buyer from scenarios like unpaid taxes and title forgery. Title insurance typically costs 0.5% to 1% of the purchase price. Buyers usually cover this cost, but some sellers pay it as a concession.
- Transfer tax: The State of Georgia charges a transfer tax when a property deed changes hands. The rate is $1 for the first $1,000 of the sales price, then $.10 for each additional $100. The transfer tax is usually a seller closing cost.
- Agent commissions and bonuses: Real estate agent commissions in metro Atlanta average around 5.8%. The seller traditionally pays the commission, which is then divided between the seller’s and the buyer’s real estate agent. Some sellers find it beneficial to offer extra payment to the buyer’s real estate agent in the form of a bonus or other incentive. The purpose of doing so is to attract more buyer’s agents—not to mention their clients— to your listing.
- Unpaid HOA (homeowners association) fees and condominium dues: If you are selling a condo or are part of an HOA, you will need to make sure that all outstanding dues and fees are up to date. If the fees are annual, you can pro-rate these based on the closing date.
- Property tax proration: Sellers can expect to pay any annual property taxes up to the closing date. For example, if you close on July 31st, you will usually need to credit the buyer for the first 7 months of the calendar year.
- Escrow fees: Escrow fees in Georgia average around $300–$600 and are often split between the buyer and the seller.
- Attorney’s fees: According to Georgia law, a licensed attorney must oversee house sales and other real estate transactions. This job usually consists of reviewing and preparing documents. Either the buyer or seller can pay this cost, which averages between $500–$1500. Most of the time, you will only need one attorney involved in the sale, as state law dictates that attorneys hired for this purpose must treat both buyer and seller fairly and ethically.
- Seller concessions: Many buyers will negotiate the cost of home repairs into the purchase agreement, rather than have the seller fix the problem before closing. Other common seller concessions include termite bonds, flood insurance, home warranties, and any buyer closing costs that the seller is willing to pay.
- Miscellaneous fees: Courier fees and other transactions costs may come up during the house- selling process. These fees tend to be less expensive and can be paid by either party.
How much are closing costs for sellers in Atlanta?
Average closing costs for sellers in Georgia are between 6%–10% of the sale price.
The most expensive closing cost for sellers is typically real estate commissions. In some cases, seller concessions around home repairs can add up as well.
Calculate your closing costs.
Federal government-backed lender Fannie Mae offers an online closing cost calculator that might help you know what to expect on closing day. This calculator is buyer-focused, so make sure you remember to factor in real estate commissions.
Ways to reduce your closing costs
If 6%–10% of the sale price is more than you want to pay to sell your house, there are ways you can try to decrease your closing costs:
- Look for an agent who will accept a lower commission: Agreements between sellers and real estate agents are negotiable. You might be able to find a “low-commission agent” or discuss a flat-fee commission structure with your real estate agent.
- Negotiate with the buyer: You might be able to persuade the buyer to pay some or all of your closing costs, especially if they are excited about your house. On the other hand, asking the buyer to pay seller closing costs could slow down or jeopardize an otherwise reasonable deal.
- Negotiate better terms with service providers: You might be able to strike a better deal with service providers like law firms and title companies.
- Sell FSBO (for sale by owner): Selling FSBO can certainly save you money on real estate agent commissions. The downside of FSBO is that you need to manage most or all of the home-selling process on your own. This may not be the easiest or best approach for every seller.
Alternatively, you can work with an off-market buyer like HomeVestors®.
HomeVestors® pays typical closing costs.†
HomeVestors® does not charge commissions or fees, and we pay typical closing costs.† We provide excellent customer service, buy houses “as is,” and can sometimes close in as little as 3 weeks.
Our Atlanta team has purchased all types of properties, including single-family homes, townhouses, and multifamily properties. We have been in the business across the US for 29 and have earned a 95%* nationwide customer service rating.
If you want to close quickly without the closing costs, give HomeVestors a try.
This blog is for informational purposes only and should not be considered legal advice.
