Are you trying to figure out who pays what at closing in Atlanta? You are not alone. Whether you are buying a condo in Midtown or selling a single-family home in Morningside, understanding closing costs can help you plan with confidence and avoid surprises. In this guide, you will learn which fees buyers and sellers typically cover in Georgia, what is negotiable, and how to estimate your cash to close or net proceeds. Let’s dive in.
Buyer vs. seller costs at a glance
In many Atlanta transactions, the seller pays the real estate commission and the owner’s title insurance policy, while the buyer pays lender and inspection related costs. As planning guidance, buyers often budget about 2–5% of the purchase price for closing costs, and sellers often budget about 6–10% when commissions are included. Your actual numbers will vary with price, loan program, HOA fees, and negotiated terms.
- Buyers typically pay: lender fees, appraisal, inspections, the lender’s title policy, recording the mortgage, and prepaid items like insurance and taxes held in escrow.
- Sellers typically pay: real estate commission, the owner’s title policy, prorated property taxes up to the closing date, and payoff of any existing mortgages or liens.
- Many items are negotiable, including who pays the owner’s title policy, seller credits toward buyer costs, and the split of smaller fees.
Buyer closing costs in Atlanta
What buyers usually pay
Buyers in Georgia commonly cover the following items:
- Lender charges: origination or application fees, underwriting or processing, and a credit report. If you choose a rate buydown, discount points are paid by you unless a seller credit covers them.
- Appraisal: typically paid up front by you.
- Inspections: general home inspection, and any specialty inspections such as termite, radon, or septic, are usually your responsibility.
- Title costs: the lender’s title insurance policy and related lender title endorsements are commonly paid by the buyer in Georgia.
- Recording fees for the mortgage: recorded with the county and generally paid by the buyer. Fees vary by county and document size.
- Prepaid items: first year of homeowners insurance, initial tax and insurance escrow deposits if required by the lender, and prepaid interest from closing to your first mortgage payment.
- HOA related fees: some associations charge transfer or setup fees. These are often negotiable in the contract.
How to calculate buyer cash to close
Use this simple framework to estimate your cash to close:
- Down payment per your loan terms
- Plus buyer closing costs from your Loan Estimate or Closing Disclosure
- Plus prepaid insurance and initial escrow deposits
- Minus earnest money deposit already paid
- Minus any seller credits negotiated = Estimated buyer cash to close
Under federal TRID rules, your lender must provide a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing. These documents show your exact fees and are the best tools for apples to apples comparisons. Learn more about these documents from the Consumer Financial Protection Bureau.
Seller closing costs in Atlanta
What sellers usually pay
Sellers in Atlanta often cover:
- Real estate commission: commonly the largest line item, negotiated as a percentage of the final sale price.
- Owner’s title insurance policy: in Georgia, it is customary for the seller to pay for the owner’s policy that protects the buyer’s title. This is a custom, not a rule, and it can be negotiated.
- Payoff of mortgages and liens: any existing loan balances and recorded liens are paid at closing.
- Prorated property taxes: you pay property taxes for the period you owned the home up to the closing date. The settlement statement will show the proration method.
- Outstanding HOA assessments, municipal liens, and any agreed repairs or credits.
- Recording fees for conveying the deed: practices vary and can be split per the contract.
How to estimate net proceeds
Start with your expected sale price, then subtract:
- Real estate commission, computed as sale price times the agreed commission rate
- Payoff of mortgages and liens, based on payoff letters
- Owner’s title policy and seller side closing charges
- Prorated property taxes and HOA dues
- Repair costs or credits to the buyer = Estimated seller net proceeds
For a precise estimate, your closing attorney or title company can prepare a draft settlement estimate based on your contract, payoffs, and the scheduled closing date.
What is negotiable in Georgia closings
Common negotiation points
Several items are frequently negotiated in Atlanta-area contracts:
- Who pays the owner’s title insurance policy
- Seller credits toward buyer closing costs, subject to loan program limits
- Repairs discovered during inspection versus repair credits
- Allocation of routine fees like HOA transfer charges, recording fees, courier or wire fees
- Listing commission, which is a contract term between seller and listing agent
Program limits on seller paid costs
Loan programs limit how much a seller can contribute toward a buyer’s costs. For example, FHA often allows seller concessions up to 6% of the lesser of the sale price or appraised value. Verify current FHA specifics through the U.S. Department of Housing and Urban Development. Conventional loan limits vary with the buyer’s down payment, and you can review conventional guidance through Fannie Mae. VA loans also have concession limits that are often cited around 4 percent, but you should confirm current guidance with your lender. Your lender will apply the correct caps and disclose allowed items on your Loan Estimate and Closing Disclosure.
Title insurance in Georgia: who pays what
Georgia closings commonly involve two different title insurance policies:
- Owner’s title insurance: protects the buyer’s ownership. In Georgia, it is customary for the seller to pay for this policy, though the parties can negotiate otherwise.
- Lender’s title insurance: protects your lender’s mortgage. The buyer typically pays this policy as part of buyer closing costs.
Premiums are one time charges based on state filed rate schedules. For exact numbers, request a title quote for your specific price and loan amount from your closing attorney or title company.
Fulton County taxes, recording, and local fees
Property taxes in Fulton County are typically prorated at closing so the seller pays up to the closing date and the buyer pays thereafter. For county resources on tax timing and payment, visit Fulton County’s official site. Recording fees for deeds and mortgages are set by the county and can vary with document length and type. For fee schedules and clerk contact information, consult the Georgia Superior Court Clerks’ Cooperative Authority or the Fulton County site.
Recording the mortgage is usually a buyer cost. Recording the deed to transfer ownership may be paid by the seller or split, depending on local practice and the purchase agreement. Your settlement statement will show the final allocation.
Compare costs across lenders and offers
Use the Loan Estimate and Closing Disclosure
To compare offers, use the standardized disclosures required under TRID. The Loan Estimate shows projected fees early in the process, and the Closing Disclosure shows final numbers at least three business days before consummation. Review these side by side, confirm any seller credits are applied, and calculate down payment plus costs minus credits and earnest money to find your total cash to close. The CFPB provides helpful explanations of both forms.
Timeline tips
- Ask each lender for a complete fee breakdown early, then verify in the Loan Estimate within three business days of application.
- Monitor changes during underwriting and request an updated estimate if terms change.
- Plan around the Closing Disclosure delivery, which you must receive at least three business days before closing.
Buyer checklist: what to budget
- Earnest money deposit, credited at closing
- Down payment per loan terms
- Loan application, origination, underwriting, and credit report fees
- Appraisal and any inspections, such as termite or radon
- Lender’s title insurance and related title or settlement fees
- Recording fees for the mortgage
- First year homeowners insurance, prepaid interest, and initial escrow deposits
- Reserve 2–5% of the purchase price as a planning range for closing costs
- Review your Closing Disclosure three business days before closing
Seller checklist: what to expect
- Commission to listing and buyer brokers, usually the largest expense
- Owner’s title insurance policy
- Payoff of existing mortgages and liens
- Prorated property taxes and HOA dues
- Repairs or negotiated credits after inspection
- Recording or transfer related county charges, confirm with your closing attorney
- Plan on 6–10% of the sale price for total costs when commissions are included, then verify with a formal net sheet
Strategies to reduce cash to close or boost net
- Request or offer a shift in title policy payment. In Georgia, it is customary for the seller to pay the owner’s policy, but you can negotiate this.
- Use seller credits to cover allowable buyer closing costs, subject to loan program caps.
- Consider a seller paid rate buydown that reduces the buyer’s monthly payment, if permitted by the lender.
- Weigh repairs versus credits. Credits give buyers control of work after closing and can simplify timelines for both sides.
- Sellers can negotiate the listing commission with their agent. This directly affects net proceeds.
- Split smaller routine fees, such as HOA transfer or courier fees, where local practice allows.
A smoother closing with local guidance
Every Atlanta transaction is unique, and local customs can vary across neighborhoods and buildings. A senior led, boutique team can help you budget accurately, structure credits within program limits, and coordinate with your lender, title company, and HOA so your closing stays on track. If you want a clear estimate of your numbers before you sign, we are here to help.
Ready to plan your closing costs with confidence? Connect with the Allie Burks Group to run tailored buyer cash to close or seller net proceeds and to map out your next steps.
FAQs
Who pays the real estate commission in Atlanta?
- Commission is typically paid by the seller per the listing agreement, and it is usually the largest single seller expense. Parties can negotiate otherwise.
Who usually pays for owner’s title insurance in Georgia?
- It is customary for the seller to pay the owner’s title policy, while the buyer pays the lender’s policy. This is a common practice, not a legal requirement, and can be negotiated.
How are Fulton County property taxes handled at closing?
- Taxes are prorated so the seller pays for the period up to the closing date and the buyer pays thereafter. The proration method appears on the settlement statement.
Can a seller pay part of a buyer’s closing costs?
- Yes, through seller credits or concessions, but loan programs cap the amount. Your lender will confirm the maximums and eligible items.
How can buyers compare total cash to close across lenders?
- Use the Loan Estimate and the Closing Disclosure for each offer, confirm all credits are applied, then compute down payment plus costs minus credits and earnest money to find total cash to close.
