What You Need to Know About Coweta County, GA, Closing Costs
Death and taxes, they say, are inevitable and unavoidable. But so are closing costs if you’re buying or selling a house in Coweta County, GA.
The problem, though, is that many people don’t factor in the cost of closing when calculating the cost of buying/selling. The cost of buying a home goes beyond the down payment and monthly mortgage payments, and the cost of selling a home – and, yes, there’s a cost – includes more than the agent fees/commission.
It’s important, then, for anyone involved in a real estate transaction to have some understanding of these costs. So read on to discover what you need to know about the closing costs in Coweta County, GA.
Cost of Closing Overview
Closing (or “the settlement) is the final step in the process of selling/buying real estate. It’s the terminus of the transaction where money changes hands, dotted lines are signed, ownership is transferred, and the buyer walks away with the key to a new home.
The various fees and costs involved are paid by both buyer and seller before the transaction can be fully finalized. For buyers, the closing costs usually fall into two categories: loan-related costs and ownership-associated costs. Sellers are responsible for covering other closing costs, usually agent commissions and fees associated with transfer of ownership.
Loan-related Fees
These fees vary from lender to lender, but the most common ones are loan origination and processing fees. Pre-paid interest is another and usually includes only the days left in the first month’s billing period.
Third-party Fees
These fees pay all the professionals and service providers involved in the deal, for example inspectors and attorneys. Though not large individually, these fees can add up to a substantial amount.
Home Ownership Fees
Typically, these fees include homeowners insurance, property taxes, HOA dues (when applicable), and escrow-account fees.
Agent Commissions
For sellers, the largest share of the cost of closing is the agent commissions, which come to about 6% of the sale price.
Title Search and Insurance
There are also the costs of the title search and the lender’s title insurance policy, typically paid by the seller.
What Buyers and Sellers Pay
As indicated, certain portions of the closing costs are paid by the buyer and others by the seller. So let’s see who pays exactly what with respect to Coweta County, GA, closing costs.
Buyer Costs
Buyer costs typically amount to about 1% to 3% of the sale price, most of which is fees charged by the lender. These costs include:
- Points
- Lender- and mortgage-related costs
- Credit-report fee
- Title insurance
- Prorated property taxes
- Escrow fees
Title Search and Insurance
Sellers typically pay about 6% to 8% of a property’s sale price in closing costs. Most of this goes to agent commissions, usually 4% to 6%, and the remainder is used used to cover the following expenses:
- Owed property taxes
- Back HOA dues
- Needed repairs
Cost of Closing in Georgia
“In the state of Georgia, the average home price is $256,772, with buyers paying an average of 1.41% in closing costs. This means the average closing cost in Georgia in 2020 [was] $3,610.38 with taxes and $2,700.63 without taxes. . . . [O]n a $250,000 mortgage, your closing costs would be $3,535 with taxes, but on a $750,000 home, that would jump to $10,575.”
The typical fees in a closing in Georgia are:
- Appraisal
- Recording
- Transfer tax
- Title insurance policies
- Home inspection
- Settlement Fees
Now, let’s consider a breakdown of the costs and the amount for buyers and sellers . . .
Buyer Closing Costs
| Name | Costs |
|---|---|
| Loan origination fee | .5% to 1% of the loan amount |
| Loan discount points (optional) | One point = 1% of the loan amount |
| Credit report fee | $30 |
| Appraisal fee | $300 to $500 |
| Flood certification | $15 |
| Title search | $100 and up |
| Homeowner’s title insurance | $500 and up |
| Lender’s title insurance | $0 |
| Home inspection (pests, etc.) | $150 |
| Property inspection | $450 |
| Land survey fee | $250 to $500 and up, based on land size |
| Attorney and settlement fees — in GA, an attorney is legally required to close a home purchase | $450 and up |
| Recording fees | $50 |
| Transfer taxes — in GA, the seller customarily pays for this | $0 |
| Postage and courier fees | $35 |
| Homeowner’s insurance — 12 months prepaid at closing | $1,000 to $1,500 |
| Upfront mortgage insurance premium (MIP) for FHA loans | MIP = 1.75% of the FHA base loan amount. For example: $200,000 loan = $3,500 $300,000 loan = $5,250 |
| Prepaid daily interest charge — 15 days | $200 and up |
| Settlement and closing fees | $800 |
| Escrow deposit for property taxes and homeowner’s insurance | $700 to $1,000 |
Seller Closing Costs
| Name | Costs |
|---|---|
| Agent commission | 4% to 6% of sales price |
| Postage and courier fees | $35 |
| Own attorney fees | Varies |
| Title search fee | $100 to $200 |
| Loan conveyance fee | $50 to $65 |
| Reconveyance recording fee | $10 for the first page and $2 for each page thereafter. |
| Transfer taxes | $1 per $1,000 and 10 cents for each additional $100 in sale price. |
| Property tax — in GA, sellers must credit buyers at the time of sale | Varies |
| Seller concessions — cash to cover buyer closing costs, flood insurance for the buyer, etc. | Varies |
| Mortgage payoff | Subject to loan balance |
| Escrow fee | $800 |
Good News About the Cost of Closing in Coweta County, GA
The lists above probably seem pretty intimidating and add up to a hefty chunk of change for both buyers and sellers. There is, though, some good news about the cost of closing in Coweta County.
And that good news is that closing costs in Coweta County [in 2016 were] among the lowest in the state, ranking “at number 10 for the lowest closing costs when buying a home in Georgia.”
“Closing costs, as a rule of thumb, run about three percent of the loan amount . . . This is a general rule and is not always true. It can be more or less depending on many factors. It is negotiable as to whether . . . costs are paid by the buyer or the seller. Coweta being ranked number 10 for low closing costs in Georgia is a great reason to buy homes in . . . Coweta County.”
The Agent Advantage
Although Coweta County, GA, closing costs are inevitable, they aren’t, however, all set in stone.
Yes, the loan-related fees are pretty well cut and dried, but some of the rest is negotiable. And that’s exactly why you need an experienced local agent in your corner.
Good agents are skilled negotiators and just may be able to help you come out with a little more money left in your pocket.
