Closing costs are the part of a Savannah home purchase or sale that surprises people most, and it’s usually not because the numbers are big. It’s because Georgia does a few things differently than most states. Here’s what buyers and sellers actually pay in closing costs in Savannah, GA, who pays them, and where there’s room to negotiate.
Georgia Is an Attorney-Closing State
In Georgia, a licensed attorney conducts the closing. There’s no escrow company handling everything behind the scenes. The closing attorney runs the title search, prepares the deed and settlement statement, collects and disburses the funds, and records everything with the Clerk of Superior Court. Buyers usually choose the closing attorney, but the contract can say otherwise.
For out-of-state buyers, this is good news. You have a lawyer on the file from contract to recording, and most Savannah closing attorneys handle remote signings and mail-away closings every week.
The Two State Taxes in Savannah, GA Closing Costs
Transfer tax (seller, unless negotiated)
Georgia charges a real estate transfer tax of $1 per $1,000 of the sale price. Georgia law makes the seller liable for it, but the purchase contract can shift it to the buyer. On a $400,000 sale, the transfer tax is $400.
Intangible recording tax (buyer, if financing)
If you’re taking out a mortgage, Georgia charges an intangible recording tax of $1.50 per $500 of the loan amount, which works out to $3 per $1,000. On a $320,000 loan, that’s $960. The tax is capped at $25,000 per note, and cash buyers don’t pay it at all.
What Buyers Typically Pay
- Lender fees: origination, underwriting, appraisal, and credit report. These vary more by lender than by anything else, so compare Loan Estimates side by side.
- Intangible recording tax: $3 per $1,000 financed.
- Attorney and title fees: the closing attorney’s fee, title search, and title insurance. Your lender requires a lender’s policy. An owner’s policy is optional, and it’s the one that actually protects you.
- Prepaids and escrows: homeowners insurance, flood insurance if required, and a few months of property taxes held by your lender.
- Buyer’s agent compensation: since August 2024, buyers sign a written agreement with their agent before touring homes, and that agreement spells out how the agent is paid. Sellers can still agree to cover part or all of it, and it’s often negotiated in the offer.
What Sellers Typically Pay
- Transfer tax: $1 per $1,000 of the sale price, unless the contract says otherwise.
- Mortgage payoff and any liens on the property.
- Listing brokerage compensation, set in your listing agreement.
- Any seller concessions you agree to, such as repairs or closing cost help for the buyer.
- Your share of property taxes for the part of the year you owned the home.
Property Taxes Are Prorated at Closing
Chatham County property taxes are billed once a year, so the closing attorney splits that year’s bill between buyer and seller based on the closing date. The seller credits the buyer for the days the seller owned the home, and the buyer pays the bill when it comes due.
Don’t Forget the Homestead Exemption
If you’re buying a home to live in, you can lower your property tax bill with a homestead exemption. In Chatham County, you have to own and live in the home as of January 1 of the tax year, and you file with the Chatham County Board of Assessors. The filing deadline has moved recently, so check their site for the current date as soon as you close. Rental properties don’t qualify.
Flood Zones Change the Math Before You Ever Get to Closing
Coastal Georgia flood zones can change from one lot to the next. If a home sits in a high-risk zone and you’re financing it, your lender will require flood insurance, and that premium becomes part of your monthly payment and your prepaids at closing. Pull the flood zone before you write the offer, not after. Our friends at Team 912 put together a detailed Coastal Georgia flood zone and insurance primer if you want the full picture.
A Quick Savannah Closing Cost Example
Here’s how the two state taxes play out on a $400,000 Savannah home with 20% down:
- Sale price: $400,000
- Loan amount: $320,000
- Transfer tax (seller, by default): $400
- Intangible recording tax (buyer): $960
Everything else, including lender fees, attorney and title fees, insurance, and prorations, depends on the lender, the property, and the closing date. Your Loan Estimate and your closing attorney’s settlement statement are where those numbers get real.
How to Keep Your Savannah GA Closing Costs Down
Most closing costs are set by Georgia law or by your lender, but a few are worth negotiating. Here’s where buyers and sellers actually save money.
- Shop at least two lenders. Origination fees, discount points, and rates vary more than most people expect. Compare Loan Estimates line by line, not just the rate.
- Ask for seller concessions. When a home has been sitting, sellers will often cover part of the buyer’s closing costs. Your loan type sets a cap on how much the seller can contribute, so check with your lender first.
- Read the transfer tax line in the contract. Georgia puts it on the seller by default. Don’t agree to take it on as a buyer without getting something in return.
- Pick your closing date on purpose. Closing later in the month means less prepaid interest due at the closing table.
- Quote the owner’s title policy with the lender’s policy. Buying both at the same closing is usually cheaper than adding an owner’s policy later.
Buying or Selling in Savannah?
Julie Gates has been buying, selling, and managing Savannah real estate since 2004 and knows exactly where closing costs hide in this market. If you’re thinking about buying or selling a home in Savannah, Pooler, Richmond Hill, or the islands, call Julie at (912) 600-2893 for a straight answer on what your closing will actually look like. And if you’re buying a property to rent out, Sid Was Here property management can take it from there.
Julie Gates is a licensed Georgia real estate broker with Team 912 at RE/MAX Accent. This article is general information, not legal or tax advice. Your closing attorney and CPA are the right people for questions about your specific transaction.
