Who pays closings costs in Georgia?

Things are very different from when I started in this business in 1992.  Back then there were what were considered "customary" seller closings costs.  I remember what items those were, but since they don't apply today it's not really much of a need to talk about them. In our GAR contracts today closings costs have all shifted to the buyer with two exceptions.

One is any item needed to cure title.  Perhaps a corrective deed or Quit Claim is needed before a seller can sell.  And if a seller cannot attend the closing they also are required to pay for documents to be delivered to and from them for the closing.  Any other closing contribution a seller makes to a buyer is in the form of a contract negotiation. The negotiated amount on on the front page in the blank you see in the screen shot above.  The items below are highlighted that I mentioned in this paragraph.

As you can see pro-rations are also mentioned under closing costs. It truly depends on the date of closing as to how that works. Unpaid taxes are a credit to buyer from seller based on the past year if tax bills are not out. If tax bills are out buyer and seller both pay and their share and closing attorney pays bill.  If seller has already paid then buyer credits back their share to seller.

From time to time we have a buyer who MUST have seller contributions to be able to close. But my opinion is that if you don't need it, don't ask for it. The seller will always have a bottom dollar in mind.  They just add the closing costs you ask for to that number. So if you are short of funds to close then it's a good idea.  If not you are perhaps paying interest on closing costs needlessly. 

If you'd like more an explanation about what closing costs are I'd be happy to suggest a great lender for you talk with about them.  Just give me a call. 706-485-9668

 

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Comment balloon 12 commentsTammy Lankford, • September 06 2016 02:10PM

Comments

Hi Tammy, buyers and sellers often get confused who pays for what, this is a very informative post you've shared regarding closing costs.

Posted by Beth Atalay, Cam Realty of Clermont FL (Cam Realty and Property Management) 10 months ago

HI Tammy, thanks for explaining who typically pays specific closing costs in Geogia.

Posted by Sybil Campbell, REALTOR® ABR, SFR, SRES Williamsburg, Virginia (Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia) 10 months ago

Most costs are paid by the buyer in New York as well; from my experience selling a house in New Mexico though, this can dramatically change state by state.

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, 914-419-0270, kat@thehousekat.com) 10 months ago

Sybil Campbell it's pretty different as states and even regions vary on what is the norm.  Here in the Atlanta market sellers customarily make a contribution.  Not common in my market at all.

Beth Atalay and sadly most agents in my market do a very poor job explaining the contracts to people and people simply don't read them.

Kat Palmiotti exactly why I decided to put the state in the title.  And honestly it varies in custom from area to area here, but if it happens it's JUST as a negotiated seller contribution. There is no "standard"

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) 10 months ago

This is what I like about closings in California. So civil. Extremely civil. So strongly civil that nobody attends them, and they are processed after the fact. Nobody gets around the table and yaks. Often mobile signers are utilized and none of the parties even go into title closings in person. Of course, there is no chance for fights this way, too. :)

Posted by Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents, Put 40 years of experience to work for you (Lyon Real Estate) 10 months ago

Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents  who is fighting at closing?  I've had 1 person yell at a closing in my 25 years.  I love sitting down at the table.  Generally speaking there are hugs and handshakes and keys passed.  

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) 10 months ago

Good information for consumers in your GA real estate transactions Tammy Lankford, 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek & Associates LLC Team) 10 months ago

I knew about zero of the particular information about Georgia here. You have educated me

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) 10 months ago

Tammy

A well done, informative post to help clear up some confusion - no doubt there is plenty of it, and buyers are sometimes surprised at what they do have to pay. It's interesting how different things can be in different areas.

I echo what Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents says about our closings.

Jeff

Posted by Jeff Dowler, The Southern California Relocation Dude - Carlsbad (Solutions Real Estate ) 10 months ago

Jeff Dowler I know it's different.  My mother in law never even met the former owners of her house.  She would have loved to have talked to them about the plants and the bells and whistles, but didn't happen.  I can't wrap my head around why it's better to not have a single closing, but no one asked me and well... I am a creature of habit.

Laura Cerrano things are very different from state to state.  We have a good many out of state buyers and it's important to me for them to fully understand our contract.

 

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) 10 months ago

Lisa Von Domek it's so different.  I still don't really grasp why you guys are non disclosure on sales prices in the public records, but for whatever reason... we all deal with the various customs and real estate laws of our respective states.

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) 10 months ago

This is a great topic to write about and will get you lots of Google Juice. It will help educate buyers too.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional) 10 months ago

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