COSTS
OF CLOSING
ALL CASH
PURCHASE
|
In Georgia, the Seller is expected to pay for the following:
1. Transfer tax on
the deed at a current rate of .0010% of the selling price.
The seller is expected to cure any title problems, which may include back taxes, materialman's liens, and late Homeowner's Association dues. These items are not considered closing costs. Closing costs may be paid by the Seller or the Buyer. WHO PAYS THE CLOSING COSTS IS NEGOTIABLE AT THE TIME OF CONTRACT.Items Which Are
Considered Closing
Costs APPRAISAL.
Mortgage Loan Only. Optional for Cash Sale. About
$350.00. This would be recommended if you are purchasing a home
with few or no comparables in the area. TITLE SEARCH . Mortgage Loan Only. Optional for Cash Sale, but required if you are purchasing Owner's Title Insurance. About $150.00. OWNER'S TITLE INSURANCE. Optional for Cash Sale. This is optional in Georgia. It protects the Buyer/Owner against any future claims against title. It is a one-time fee. Cost varies. Multiply the purchase price by .002, and you'll get an estimate of the cost. FINAL PROPERTY SURVEY. Optional for Cash Sale. Most title companies no longer require a survey at closing, but the lender may require it (or the buyer may want one). The cost averages $275.00-$300.00. You may request that the closing attorney order the survey for closing, or you may order and pay for it prior to closing. ATTORNEY'S
FEE. Mortgage Loan or Cash Sale. This is the fee to the Closing
Attorney
who represents the lender in the transaction. The average fee in
Atlanta
is $400-$550. MISCELLANEOUS RECORDING FEES. Mortgage or Cash
Sale. Estimate $100.00
Prepaids are not to be confused with Closing Costs. Closing Costs are costs to close the loan, such as lender and attorney fees and title insurance. Prepaids are items which are prorated or escrowed at closing. These may include the following: PROPERTY TAXES The current
year’s property tax bill will be prorated at closing.
If the tax bill is not yet out, the attorney will estimate the bill and
will prorate the buyer’s and seller’s shares at closing. The tax
bill for Gwinnett County comes out in July or August. HAZARD INSURANCE You must bring a one year paid policy to the closing for your homeowners insurance (or have it sent by your insurance company to the closing attorney for the premium to be deducted at closing). HOMEOWNERS ASSOCIATION FEE If your neighborhood has a homeowners association with a mandatory fee, the fee will be prorated at closing, depending on how your HOA collects (monthly, quarterly or annually). You may also have to pay in full an initiation fee. The current Georgia Association
of Realtors contract allows either the Buyer or the Seller to pay
prepaids,
but this may dictated by the lender and loan program. Recommended Optional Items ONE YEAR HOME WARRANTY. This is not considered a true closing cost, but may be paid at closing by the buyer or seller. Several third party companies offer home warranties for resale homes. The cost for basic coverage is under $400.00, and certain optional coverage may be added. HOME INSPECTION. This is not a closing cost, and is optional. The cost of an independent home inspection is the Buyer's cost. If you are buying with the right to have the home inspected, it is your responsibility to order the inspection within the deadline period and pay the inspector at the time of inspection. Links to Other Helpful Information |