What Are Buyers and Sellers Responsible for at the Closing Table When Buying or Selling a Home?

Buying or selling a home is exciting, but when closing day arrives, many people are surprised by the costs and responsibilities that come with it. One of the most common questions I hear as a Realtor in Savannah, Georgia is:

“Who pays for what at closing?”

The answer depends on the type of loan, the purchase agreement, and what was negotiated during the transaction. Understanding the costs ahead of time can help avoid surprises and make your closing experience much smoother.

What Buyers Are Typically Responsible For at Closing

1. Down Payment

If you’re financing your home, you’ll need to bring your down payment to closing unless you’re using a program that offers down payment assistance.

2. Earnest Money Deposit

This deposit is usually applied toward your down payment or closing costs.

3. Loan Origination Fees

These are fees charged by your lender for processing your mortgage.

4. Appraisal Fee

Most lenders require an appraisal to determine the home’s market value.

5. Home Inspection Costs

Although inspections are usually completed before closing, buyers are responsible for paying for them.

6. Credit Report and Underwriting Fees

These are fees associated with processing and approving your mortgage.

7. Homeowners Insurance

Lenders require buyers to have homeowners insurance before funding the loan.

8. Property Taxes and Escrow Reserves

Many lenders collect a portion of future property taxes and insurance to establish an escrow account.

9. Recording Fees

These fees are paid to the county to officially record the new ownership of the property.

10. Title Insurance (Depending on Local Custom)

In some transactions, buyers may pay for lender’s title insurance or owner’s title insurance.

What Sellers Are Typically Responsible For at Closing

1. Real Estate Commissions

This is usually one of the largest expenses for sellers and is paid according to the listing agreement and negotiated terms.

2. Owner’s Title Insurance (Varies by Location)

In many Georgia transactions, this is often negotiated between the buyer and seller.

3. Attorney Fees

Georgia is an attorney-closing state, meaning a real estate attorney handles the closing process.

4. Property Taxes

Sellers are responsible for property taxes up until the day they own the home.

5. HOA Fees

Any unpaid homeowners association dues typically need to be paid before closing.

6. Agreed-Upon Repairs or Seller Credits

If repairs were negotiated during the inspection period, these costs are usually paid by the seller.

7. Mortgage Payoff

The seller’s existing mortgage must be paid off before transferring ownership to the buyer.

8. Recording and Transfer Fees

Certain transfer taxes and recording costs may be the responsibility of the seller depending on local customs and negotiations.

What Costs Can Be Negotiated?

One thing many people don’t realize is that closing costs are often negotiable. Buyers can ask for seller concessions, and sellers can negotiate who pays certain fees as part of the purchase agreement.

Every transaction is unique.

How Much Should Buyers and Sellers Expect to Pay?

Buyers:

Generally, buyers should budget approximately 2% to 5% of the purchase price for closing costs.

Sellers:

Sellers often pay approximately 6% to 10% of the sales price, depending on commissions, concessions, and other negotiated expenses.

Why Having the Right Realtor Matters

Whether you’re buying your first home, relocating to Savannah, Georgia, or selling your current home, understanding closing costs can save you time, money, and stress.

As a local Realtor serving Savannah, Pooler, Richmond Hill, Effingham County, Tybee Island, and surrounding Coastal Georgia communities, I guide my clients through every step of the process so there are no surprises at the closing table.

If you’re thinking about buying or selling a home in Savannah or the surrounding areas, I’d love to help.

Erv Bordner, Realtor®
Better Homes and Gardens Real Estate Legacy
📞 912-596-0460
📧 ervsellshomes@gmail.com
📍 130 Canal Street, Suite 504, Pooler, GA 31322