There is a trend in seller paid closing costs on Georgia purchase transactions. About two years ago, we saw purchase agreements where the seller would pay as much as 5-6% toward the buyer's closing costs and pre-paid expenses. I have noticed over the last year sellers are starting to pull back on this contribution.
What does this mean for home buyers? You are going to need more money in the bank! In addition to your down payment you will need money to cover closing costs.
Georgia is an attorney state. This means that if there is a real estate transaction with a mortgage, an attorney must review the title and close the transaction. The typical fees for a mortgage transaction include the attorney fees, lender's title insurance, owner's title insurance, transfer tax, intangible tax, recording fees, and processing/underwriting fees. The total dollar cost will depend on the mortgage amount and purchase price.
With the swing into a seller's market, it is highly likely that this trend is going to continue. So buyers, start saving you are going to need a little extra money.
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