Closing costs when buying an investment property in Georgia
2 min read
Closing costs are one of the most underestimated numbers in a flip. Here's what to expect when you buy an investment property in Georgia, so your budget isn't surprised at the closing table.
Georgia is an attorney-closing state
In Georgia, a real estate attorney handles the closing. The attorney prepares and reviews documents, coordinates the title search and title insurance, and disburses funds. You'll pay the attorney's closing fee as part of your closing costs.
Common closing costs for investors
- Attorney and settlement fees
- Title search and title insurance: a lender's policy is usually required, and an owner's policy is recommended
- Lender origination points: for example, 1 point is 1% of the loan amount
- Lender fees: such as underwriting, processing, appraisal or valuation
- Recording fees: for recording the deed and the security deed with the county
- Prorated property taxes: your share of the year's taxes
- Insurance: usually paid up front at closing for a renovation or builder's risk policy
Georgia transfer tax
Georgia charges a real estate transfer tax of $1 per $1,000 of the property's value. It's commonly paid by the seller, but who pays can be negotiated in the contract.
Georgia property taxes, briefly
Georgia property taxes are based on 40% of the property's fair market value (the assessed value), multiplied by the local millage rate. Rates vary by county and city, so check the specific county, whether that's Fulton, DeKalb, Cobb, Gwinnett, Clayton or elsewhere.
Budgeting for closing costs
A simple rule of thumb is to budget a few percent of the purchase price for closing costs, plus lender points, plus prorated taxes and insurance. My fix & flip calculator includes acquisition costs, property taxes and insurance so you can see them in your numbers.
Frequently asked questions
Who pays closing costs in Georgia?
Buyers and sellers each pay their own closing costs, though some costs can be negotiated in the contract. Buyers usually pay lender fees, title insurance for the lender and their share of the attorney fees, while sellers commonly pay the transfer tax.
Do I need an attorney to close on a property in Georgia?
Yes. Georgia requires a licensed attorney to conduct real estate closings, which is why every Georgia closing involves a closing attorney.
How much are closing costs on an investment property?
They vary by price, lender and county, but investors should plan for attorney and title fees, lender points and fees, recording fees, and prorated taxes and insurance. Running the deal through a calculator before you make an offer helps you avoid surprises.
This post is general information, not legal or tax advice. Your closing attorney can confirm the exact costs for your deal. Ready to fund a purchase? Send me your deal.
Written by Jasmine Brown
Jasmine specializes in financing flips, new construction, DSCR, and multifamily nationwide. As an investor, she brings first-hand experience and strategic insights to her clients. Fund your next deal