“Closing costs” are the all-in expenses required to transfer a home from you (the seller) to the buyer at the closing table. The exact items vary by property, loan type, and county rules, but the categories are pretty consistent—especially here in Georgia, where closings are conducted by real estate attorneys. Below is a clear, practical breakdown so you can budget wisely and protect your net.
Last updated: October 2025
(General information, not legal or tax advice.)
Quick Definitions
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Closing costs: Third-party and transactional fees due at closing (title work, attorney, recording, transfer tax, HOA docs, courier/wire fees, etc.).
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Prepaids: Items paid in advance for the buyer (insurance, taxes, escrow setup)—mostly on the buyer side.
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Concessions / seller subsidies: Dollars you, the seller, agree to pay toward the buyer’s costs (negotiated and limited by loan program).
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Commissions: Compensation you agree to pay in your listing agreement. Commissions are negotiable; how buyer-agent compensation is handled is also negotiable today—get it in writing.
Common Closing Cost Line Items (What They Are)
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Attorney & title fees: The closing attorney prepares documents, runs title, balances the file, and disburses funds.
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Title insurance: Owner’s and lender’s (if buyer is financed) policies to protect against covered title defects.
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Government recording fees: To record the deed (and the buyer’s security deed if financed).
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Georgia transfer tax (seller customarily): A state tax on the deed. In Georgia it effectively equals 0.1% of the sale price (calculated as $1 on the first $1,000 plus $0.10 per additional $100).
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Intangible tax (buyer/borrower): A Georgia tax on new loans (not cash), typically 0.3% of the loan amount; listed here so you know why buyers sometimes ask for concessions.
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Courier & wire fees: Bank and document delivery charges.
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HOA/condo fees: Account status/estoppel letter, transfer/setup charges, and prorations of assessments.
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Municipal fees: Septic/well letters, permits/braced decks in some cities/counties (property-specific).
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Lien/mortgage payoffs: Your existing mortgage(s), home equity lines, judgments, or tax liens must be paid in full from proceeds.
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Termite/wood-infestation report: Customary in parts of GA; who pays is negotiable.
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Prorations: You’ll credit the buyer for your share of property taxes and HOA dues through the day of closing (local practice varies).
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Repairs / credits: Items negotiated after inspection (or agreed at contract).
What about appraisals & inspections? Buyers generally pay for them, but you might see a request for a seller credit that effectively covers some of these costs.
Who Pays What in Georgia? (Typical—but Negotiable)
Seller customarily covers:
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Georgia transfer tax (≈ 0.1% of price)
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Deed prep / some attorney fees (buyer’s attorney typically closes; you may pay a deed-prep fee if separate)
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Any broker commissions you agreed to
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HOA transfer/estoppel items (varies by community)
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Prorated taxes/dues through closing day
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Negotiated repairs or seller concessions
Buyer customarily covers:
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Attorney fee to conduct closing (often chosen by buyer)
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Title search and title insurance (owner’s and lender’s)
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Lender fees (origination, underwriting, credit report)
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Appraisal & inspection(s)
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Recording fees and intangible tax (if financed)
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Prepaids (insurance, tax escrows)
Local custom can differ, and your contract controls. Always confirm who pays what in writing.
Sample Seller Cost Snapshot (Illustrative Only)
Assume: $300,000 sale in Georgia, single-family home, active HOA, financed buyer.
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Georgia transfer tax (0.1%) …………………………… $300
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Deed prep / seller’s attorney items ………………… $150–$450
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HOA estoppel/transfer ……………………………………… $150–$350
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Courier/wire/recording (seller side) ……………… $75–$200
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Termite letter (if seller provides) …………………… $75–$150
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Prorated property taxes/HOA ………………………… varies by close date
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Repairs or credits after inspection ………………… $0–$X,XXX (negotiated)
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Commissions you agreed to …………………………… negotiable; example 5% = $15,000
Your biggest controllables are commissions, repairs/credits, and seller subsidies.
“Seller Subsidies” (a.k.a. Concessions) in Plain English
A seller subsidy is money you agree to apply toward the buyer’s closing costs or rate buydown at closing (shown as a credit on the settlement statement). They can be a smart tool to win the best offer without dropping price, but they reduce your net. Loan programs cap how much the buyer can receive—your buyer’s lender should confirm the max.
Use smartly for:
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Rate buydown credits (helps the buyer qualify)
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Covering part of title/lender fees to keep the deal together
Can Sellers Avoid (Some) Closing Costs?
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Negotiate caps on repair requests (e.g., “health/safety only” or a dollar limit).
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Offer credits in lieu of repairs to avoid contractor delays and keep timelines tight.
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Confirm whether the buyer will cover certain fees (HOA transfer, termite letter) in the offer.
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Consider a direct, as-is sale where the buyer covers standard closing costs and there are no commissions—be sure that promise is in the contract.
Your Net—The Only Number That Matters
Seller Net = Sale Price
– (Commissions you agree to)
– (Transfer tax + attorney/title + HOA + courier/recording)
– (Repairs/credits + subsidies)
– (Prorations)
– (Mortgage & lien payoffs)
= Cash to you at closing
Build a simple one-page net sheet and update it when any assumption changes (price, credits, close date).
Seller FAQ – Georgia
Are commissions always 6%?
No. Commissions are negotiable. How buyer-agent compensation is handled is also negotiable today—compare nets, not headlines.
Do I have to pay the buyer’s appraisal or inspection?
Typically no, unless negotiated as a credit. Buyers customarily pay their own third-party diligence.
Is the Georgia transfer tax optional?
No. It’s due when the deed transfers (most often treated as a seller cost by local custom).
Who picks the closing attorney?
Often the buyer, and Georgia closings are conducted by attorneys. You can have your own attorney review your side (especially for deed prep, liens, or probate).
Prefer to Skip Repairs, Showings & Uncertainty?
Middle Georgia Cash Homes LLC can buy your Georgia home as-is, often covering standard closing costs—with no commissions and you pick the date. Compare our written offer against your agent net sheet and choose what’s best for you.