Staring at a Closing Disclosure and wondering who pays what at the closing table in Georgia? You are not alone. Closing costs can feel confusing, especially if you are selling and buying in the same move. In this guide, you will learn who typically pays which fees in Georgia, what is negotiable, how prepaids and prorations work in Alpharetta and Fulton County, and how to plan your true cash to close with confidence. Let’s dive in.
Who pays what in Georgia
In Georgia, local custom matters. Many items are negotiable, but there are common patterns that help you plan.
- Sellers usually cover the real estate commission and often the owner’s title insurance premium.
- Buyers usually cover lender-related charges, inspections, the lender’s title policy, and most prepaid items and escrow deposits.
- Exact allocations can shift with market conditions, loan rules, and what you negotiate in your contract.
Seller costs at a glance
Here are the line items sellers in Metro Atlanta, including Alpharetta, most often see:
- Real estate commission: commonly the largest expense. In the Atlanta area, total commission often falls in the 5–6% range of the sale price, split between listing and buyer representation. This depends on brokerage, agreement, and negotiation.
- Owner’s title insurance premium: it is customary in Georgia for the seller to pay the one-time owner’s policy that protects the buyer’s title.
- Mortgage payoff and liens: any existing loans, plus possible payoff processing fees.
- Recording and deed fees: sellers generally pay to record the deed that transfers title. Exact fees follow Fulton County schedules.
- HOA resale documents: many Alpharetta neighborhoods have HOAs. Sellers are commonly responsible for estoppel letters or resale certificates required for underwriting.
- Prorated property taxes: taxes are prorated through the closing date. If taxes are unpaid, the seller typically credits the buyer for the seller’s share. If taxes are prepaid, the proration flips accordingly.
- Repairs or credits: any agreed repairs, concessions, or closing cost credits negotiated in the contract.
Buyer costs at a glance
Buyer closing costs typically run about 2–5% of the purchase price, not including your down payment. Your lender and closing attorney will give you exact numbers.
- Lender fees: origination, underwriting, processing, and credit report fees. Discount points, if you buy down the rate.
- Appraisal: ordered by the lender, paid by you.
- Inspections: general home inspection, termite, radon, roof, HVAC, or other specialists, as needed.
- Lender’s title policy and title services: lenders require a mortgagee policy. Buyers usually pay this policy and related title search or closing attorney fees.
- Recording fees and taxes: you typically pay to record your mortgage or security deed and any applicable intangible tax.
- Prepaids and escrows: first year of homeowners insurance, prepaid interest from closing to your first payment, and initial escrow deposits for taxes and insurance.
- PMI costs: if your down payment is under 20 percent, private mortgage insurance may apply, either as monthly PMI or an upfront premium depending on your loan.
Prepaids, escrows, and prorations
Prepaids and prorations can be a big part of your cash to close. Understanding them helps you avoid surprises.
Common prepaids for buyers
- Homeowners insurance: most lenders require you to pay the first year’s premium at or before closing.
- Prepaid interest: interest from your closing date until your first monthly payment period starts. This depends on your closing day within the month.
- Property tax escrows: your lender often collects several months of property taxes to seed your escrow account, plus a small cushion. Fulton County billing schedules factor into the amount collected.
How prorations work
- Property taxes and HOA dues are prorated so each party pays its fair share based on the closing date.
- If taxes are billed on a set schedule, the settlement agent will follow the county’s timing and show the math on your Closing Disclosure.
Cash to close formula
Cash to close equals your down payment plus closing costs due at closing, minus any seller or lender credits, minus your earnest money already deposited. Your lender’s Loan Estimate early in the process, and your Closing Disclosure at least three business days before closing, will show the exact numbers.
What is negotiable
Most closing costs are negotiable in the purchase agreement, but loan rules limit how much the seller can contribute to the buyer’s side.
Conventional loans
- Seller concessions are capped based on your down payment. Typical limits are 3 percent if you put less than 10 percent down, 6 percent if you put 10 to 25 percent down, and 9 percent if you put 25 percent or more down.
FHA loans
- Seller concessions are generally allowed up to 6 percent of the sale price. These can cover buyer closing costs, prepaids, and certain discount points, subject to program rules.
VA and USDA loans
- VA has specific rules for what sellers can pay and commonly cited concession limits around 4 percent for some items, along with guidance on fees that veterans cannot be charged. USDA programs have their own limits. Your lender will confirm what is eligible.
Practical negotiation tips
- Even when concessions hit program limits, sellers in Georgia often pay the owner’s title policy and can offer repair credits or rate buydowns if structured to comply with lender rules.
- Market conditions matter. In a seller’s market, buyers may take on more costs to win. In a buyer’s market, sellers may cover more costs to attract offers.
Local notes for Alpharetta and Fulton County
Local practice shapes your final numbers. Here is what to know in North Metro Atlanta.
Commission norms
- The largest seller expense is usually the commission. In Alpharetta, local practice mirrors broader Atlanta norms, often 5–6 percent total, set by agreement and negotiation.
Title and closing agents
- In Georgia, closings are handled by title companies or settlement attorneys. Fees vary by firm. It is customary for the seller to pay the owner’s title policy and for the buyer to pay the lender’s policy.
Fulton County fees
- Recording charges are set by the county. Sellers typically pay to record the deed, buyers typically pay to record the security deed or mortgage. Check your settlement agent for current fee schedules.
HOA communities
- Many Alpharetta neighborhoods have active HOAs. Sellers are commonly responsible for resale certificates or estoppel letters. Buyers may see move-in or transfer fees. Confirm exact amounts and timing with the HOA.
Property taxes
- Fulton County sets its own billing calendar. Prorations at closing follow the county’s schedule and whether taxes are paid, unpaid, or escrowed.
Selling and buying in one move
If you are moving up within Alpharetta, you will navigate two transactions and two sets of closing costs.
Two closings to plan
- On the sale: plan for commission, seller-paid title policy, recording and HOA fees, and your loan payoff. Add any agreed concessions or repairs.
- On the purchase: plan for down payment, lender fees, appraisal and inspections, title services, recording charges, and prepaids or escrows.
Bridging timing and cash gaps
- Contingent offer: make your purchase contingent on your sale. This can lower risk and cash needs, but it may be less competitive.
- Coordinated or same-day closings: schedule your sale before or on the same day as your purchase so sale proceeds fund your purchase.
- Short-term financing: consider a bridge loan or HELOC to cover the gap between closings. Weigh the cost and risk with your lender.
Move-up planning checklist
- Early: ask your listing agent for a preliminary net sheet and get a lender preapproval with estimated closing costs.
- Two to three weeks out: request a payoff quote from your mortgage servicer and order HOA estoppel or resale documents.
- At contract: request an early Closing Disclosure from your lender for the purchase and a draft settlement statement for the sale.
- Final week: confirm your cash to close, verify wire instructions directly with the title company, and ensure the contract clearly states who pays each line item.
Estimate your numbers with confidence
The fastest way to reduce stress is to get transparent estimates on both sides early. Ask your lender for a detailed Loan Estimate and updated figures as your rate or timing changes. Ask your closing attorney for a fee sheet and your agent for a seller net sheet that reflects local Alpharetta norms. This clarity helps you set an achievable budget, negotiate effectively, and time your move with fewer surprises.
Ready to see tailored numbers for your situation in Alpharetta or North Metro Atlanta? Request a complimentary market consultation with Jodi Fink Halpert, your trusted advisor for coordinated, design-forward moves.
FAQs
Who typically pays realtor commission in Georgia?
- The seller usually pays the total commission from sale proceeds, with the split between listing and buyer representation set by the listing agreement and negotiation.
What closing costs do buyers pay in Alpharetta?
- Buyers usually pay lender fees, appraisal, inspections, lender’s title insurance, recording for the mortgage, and prepaids such as the first year of homeowners insurance, prepaid interest, and escrow deposits.
Do sellers pay for owner’s title insurance in Georgia?
- It is customary for sellers to pay the owner’s title policy in Georgia, although parties can negotiate a different allocation in the purchase agreement.
How much can a seller contribute to buyer costs on a conventional loan?
- Typical limits are 3 percent with less than 10 percent down, 6 percent with 10–25 percent down, and 9 percent with 25 percent or more down, subject to lender and investor rules.
How are property taxes handled at closing in Fulton County?
- Taxes are prorated based on the closing date and the county’s billing calendar, with credits or charges applied so each party pays their share.
What is included in prepaids and escrows for buyers?
- Prepaids often include your first year of homeowners insurance, prepaid interest, and initial escrow deposits for taxes and insurance, plus a small cushion required by many lenders.
How do I calculate cash to close as a buyer?
- Cash to close equals your down payment plus closing costs due at closing, minus any seller or lender credits, minus your earnest money already on deposit.
