Confused about who pays what at the closing table in Savannah? You are not alone. Closing costs can feel opaque, especially when you are weighing a cash purchase versus financing or navigating a high-end waterfront property. In this guide, you will get a clear breakdown of typical fees, how they are usually allocated in Chatham County, and what to expect if you are buying or selling a luxury home. Let’s dive in.
What closing costs cover in Savannah
Closing costs typically fall into five buckets: lender-related fees, title and settlement charges, recording and government fees, prorations like taxes and HOA, and transactional items such as commissions and payoffs. Many of these costs are negotiable or shaped by local custom in Georgia, and the final allocation is set in your purchase contract.
It helps to separate what is standard from what is flexible. Lender fees are paid by buyers who finance. Title and settlement costs are often shared or negotiated. Recording charges depend on what is being recorded and can be split. Taxes, HOA dues, and rent are prorated to the day of closing.
What buyers usually pay
If you are financing
When you take out a mortgage, you can expect lender-related fees plus several prepaid and title-related items. Typical buyer-paid costs include:
- Origination or lender fee, underwriting, and processing fees that may be a flat amount or a percentage of the loan.
- Credit report, flood determination, and tax-service fees, which are modest but standard lender charges.
- Appraisal, which can be higher for complex or luxury properties and may range from about $600 to $2,000+ depending on scope.
- Mortgage recording and any mortgage-related taxes or charges, plus the fee to record the security deed.
- Lender’s title insurance, which protects the lender for the loan amount and is typically required.
- Optional discount points if you choose to buy down your interest rate.
- Escrow deposits for taxes and insurance, commonly 1 to 3 months at closing.
- Homeowner’s insurance and, if required by the lender, flood insurance on properties in Special Flood Hazard Areas.
As a rule of thumb, financed buyers often pay about 2% to 5% of the purchase price in closing costs, not counting the down payment. For luxury homes, the absolute dollars rise due to higher appraisals, insurance, and specialty inspections, though the percentage can be similar or slightly lower.
If you are paying cash
Cash buyers avoid lender fees and mortgage-related charges. Your costs center on title, recording, and due diligence:
- Title search and settlement, plus the fee to record the deed.
- Optional owner’s title insurance, which is negotiable and protects your ownership interest.
- Survey or boundary certification, especially smart for older, larger, or waterfront parcels.
- Home and specialty inspections, which can include wood-destroying insect, septic, radon, mold, structural, or marine bulkhead and seawall evaluations.
Cash buyers commonly land around 0.5% to 2% of the purchase price for closing costs, depending on title premiums and inspections.
What sellers usually pay
Commissions
For most sellers, commission is the largest line item at closing. A common national range is 5% to 6% of the sale price, typically shared between the listing and buyer’s brokers and governed by your listing agreement.
Title and settlement
In many Georgia markets, it is common for the seller to pay for the owner’s title insurance policy, though this is negotiable and can shift with market conditions. Settlement or escrow fees may be split or allocated by custom, and deed preparation or closing attorney costs are usually modest and sometimes shared.
Payoffs and prorations
Expect the payoff of any existing mortgage and associated reconveyance fees. Property taxes are prorated to the day of closing, and HOA communities often require estoppel or transfer fees. If you agree to repair credits or closing cost assistance for the buyer, those concessions will also appear on your side of the Closing Disclosure.
Excluding commission, sellers often see about 1% to 3% of the sale price in closing costs, with the final figure shaped by title choices, prorations, and HOA-related items.
Local customs in Chatham County
While your contract sets the final allocation, these patterns are common in Savannah and around Chatham County:
- Seller typically pays the broker commission.
- Seller often pays for the owner’s title insurance policy in many Georgia markets, but it is negotiable.
- Buyer pays lender-related charges and mortgage recording when financing.
- Settlement or escrow fees are frequently split, and deed recording fees can be negotiated.
- Georgia generally does not impose a statewide real estate transfer tax the way some states do. Most routine charges are recording and mortgage-related fees at the county level.
Because recording fees are page-based and procedures can change, confirm the current schedule with the Chatham County Clerk of Superior Court or your closing attorney or title company.
Coastal and historic considerations
Savannah’s coastal setting and historic neighborhoods can add due diligence or insurance needs that affect closing costs and timelines.
- Flood zones and elevation certificates: Homes in Special Flood Hazard Areas require flood insurance when financed. An elevation certificate may be needed to price coverage accurately.
- Waterfront inspections: Bulkheads, seawalls, and shoreline conditions often warrant specialized inspections. Title companies may also request endorsements for riparian rights or private road access.
- Historic district overlays: Permitting, renovation rules, and certain inspections for landmark properties can influence negotiations and future ownership costs. Confirm district status early in the process.
- HOA and condo requirements: Estoppel letters and transfer fees are common and have specific timelines that can impact closing.
Financed vs. cash: luxury examples
These examples are illustrative to help you budget and negotiate.
Example A: Financed buyer on a $1,000,000 home
- Seller
- Commission at 5%: $50,000
- Other seller costs such as owner’s title insurance, payoff administration, prorations, and HOA-related fees: approximately $10,000 to $25,000
- Buyer
- Down payment: variable
- Buyer closing costs around 2% to 3%: about $20,000 to $30,000, including lender fees, lender’s title policy, appraisal, inspections, escrow deposits, and recording
Example B: Cash buyer on a $1,000,000 home
- Seller
- Commission at 5%: $50,000
- Other seller closing costs: roughly 1% to 2% or about $10,000 to $20,000
- Buyer
- Title, recording, survey, and inspections: approximately $5,000 to $20,000 depending on title premiums and specialty reports
Who pays what: a quick reference
Use this as a conversation starter with your agent, lender, and closing attorney.
Buyer typically pays
- Lender fees and appraisal when financing
- Lender’s title insurance
- Mortgage recording and related charges when financing
- Escrow deposits for taxes and insurance
- Homeowner’s and, if required, flood insurance
- Inspections and survey
Seller commonly pays
- Broker commission
- Owner’s title insurance in many Georgia markets, subject to negotiation
- HOA transfer or estoppel fees, if applicable
- Mortgage payoff and reconveyance
- Property taxes prorated to the closing date
Shared or negotiable
- Settlement or escrow fee
- Deed recording fee
- Owner’s title insurance, depending on local custom and market conditions
- Closing credits for repairs or buyer costs
How to reduce your out-of-pocket
A few smart moves can make a noticeable difference.
- Compare lender quotes. Ask for a detailed breakdown of origination, processing, and underwriting, plus appraisal and escrow requirements.
- Request title quotes early. Get owner’s and lender’s policy estimates and ask about any needed endorsements for waterfront or unique property attributes.
- Negotiate strategically. Consider asking for seller-paid owner’s title insurance or a closing credit for repairs where market conditions allow.
- Time your closing. Prorations and prepaid escrows are date sensitive, which can affect your cash to close.
- Schedule specialty inspections early. Waterfront, historic, or complex properties often need extra diligence that can impact closing costs and timelines.
Timeline and key documents
If you are financing, your lender will issue a Closing Disclosure before settlement that details every cost and who pays it. Review it carefully and compare it to your Loan Estimate. For both cash and financed deals, the title commitment and settlement statement will be your road map to fees and final numbers.
Your Savannah closing checklist
Use this checklist to stay organized and in control.
- Get a preliminary title commitment and premium quote for owner’s and lender’s policies.
- Ask your lender for a full fee breakdown, including appraisal, underwriting, and escrow deposits.
- Confirm current recording fees with the Chatham County Clerk or your title company.
- If the property is waterfront or in a flood zone, secure any needed elevation certificate and get flood insurance quotes early.
- Order specialty inspections for bulkheads, seawalls, septic, or structural needs as applicable.
- Decide how you want to allocate negotiable items like owner’s title insurance and settlement fees, then write it clearly into the contract.
When you are clear on who pays what, you negotiate with confidence and close with fewer surprises.
If you would like a private, advisory-level walkthrough of potential costs for your next move, connect with the team at Signature Collective. We will help you anticipate, negotiate, and streamline your closing from first conversation to keys.
FAQs
Who pays owner’s title insurance in Savannah transactions?
- In many Georgia markets the seller commonly pays for the owner’s title policy, but it is negotiable and should be confirmed with your title company and contract terms.
Are there transfer taxes for real estate in Georgia or Chatham County?
- Georgia generally does not impose a statewide real estate transfer tax like some states, so most charges are recording and mortgage related at the county level.
What percentage should a financed buyer budget for closing costs in Savannah?
- Financed buyers typically budget 2% to 5% of the purchase price for closing costs, excluding the down payment.
What should a cash buyer in Savannah expect to pay at closing?
- Cash buyers often see 0.5% to 2% of the purchase price in closing costs, mainly title, recording, survey, and inspections.
Who pays recording fees for the deed and the mortgage in Savannah?
- The borrower usually pays mortgage recording fees when financing, while the deed recording fee can be negotiated or follow local custom.
What extra costs are common for Savannah waterfront luxury homes?
- Expect potential flood insurance, an elevation certificate if needed, bulkhead or seawall inspections, and possible title endorsements tailored to waterfront or access features.
