Congratulations on deciding to sell. Whether you are moving across town to a larger lot in Vickery or downsizing to a lake cottage, seeing that final sale price on a contract is exciting. But if you have been around the block, you know that the "Gross Sale Price" isn't the number that hits your bank account.
What matters most is your Net Proceeds - the actual amount you walk away with after the dust settles. If you are selling a home in Cumming, you need to be prepared for the specific deductions that whittle that top-line number down. Georgia is unique because we are a "closing attorney state," and Forsyth County has its own specific tax timelines that will affect your bottom line.
Generally speaking, you should plan for closing costs to run anywhere from 5% to 8% of the sale price. That includes commissions, taxes, and fees. Let’s break down exactly where that money goes so you aren't surprised at the closing table.
Real Estate Commissions: The NAR Settlement Impact
For decades, real estate commissions were fairly predictable. You would typically see a total percentage listed in the contract, which was then split between your agent and the buyer's agent. However, following the recent National Association of Realtors (NAR) settlement, the rules of engagement have changed in 2025.
The biggest shift is "decoupling." Commissions are no longer automatically shared or fixed. They are fully negotiable, and transparency is the new standard.
Here is how the breakdown generally looks now:
Listing Agent Fee: This is the fee you pay your agent to market and sell your home. It typically ranges from 2.5% to 3% of the sales price, though this is always negotiable based on the services provided.
Buyer Agent Concession: In the past, sellers almost always covered the buyer's agent fee. Now, you are not required to pay this. However, many sellers in Forsyth County still offer a concession of 2.5% to 3% to incentivize agents to show the home and make the property more attractive to cash-strapped buyers.
While you can technically refuse to offer a buyer's agent commission, it’s worth discussing the strategy with your agent. In a competitive market, offering that concession can be the difference between sitting on the market or getting a quick offer.
Mandatory Government Taxes and Recording Fees
Once you move past commissions, you run into the non-negotiable costs: taxes and government fees. These are set by the State of Georgia and Forsyth County, so there is no wiggle room here.
Georgia Real Estate Transfer Tax This is a tax paid to the state for the privilege of transferring property. The math is straightforward: it costs $1.00 for every $1,000 of the sales price.
Example: If you sell your home for $600,000, your transfer tax will be $600.
Forsyth County Recording Fees To officially clear the title and record the deed, the county charges a recording fee. In Forsyth County, this is generally a flat fee of $25.00 for the deed. It’s a small line item, but it’s always there.
Non-Resident Withholding If you have already moved out of Georgia and are considered a non-resident seller, the state may withhold a portion of your net proceeds to ensure capital gains taxes are paid. If you still live in the home or are a Georgia resident, this usually won't apply to you.
Closing Attorney and Title Fees
In many other states, you might close at a title company. In Georgia, real estate closings must be conducted by a licensed real estate attorney.
Typically, the buyer chooses the closing attorney because they are the ones taking out the title insurance policy. However, just because the buyer picks the firm doesn't mean the seller gets off scot-free. You will have a few specific legal costs on your side of the ledger.
Deed Preparation: The attorney charges a fee to draft the new deed transferring ownership.
Payoff Handling: If you have an existing mortgage, the attorney charges a small fee to coordinate the payoff and ensure the lien is released.
Wire Fees: You will likely see a charge of roughly $25 - $50 to wire your net proceeds directly to your bank account.
While the buyer pays the bulk of the "settlement fee," sellers often contribute or pay for their specific document preparation. These legal admin fees usually total between $600 and $1,200, depending on how the contract is negotiated.
Prorated Property Taxes and HOA Fees
This section often causes the most confusion because the math changes depending on what day of the year you close. The goal here is fairness: you only pay for the days you actually owned the house.
Forsyth County Property Taxes In Forsyth County, property taxes are typically due on November 15.
Closing Before Nov 15: The tax bill hasn't been paid yet. You will give the buyer a credit for the days you owned the home (January 1 through Closing Date). The buyer will then pay the full bill when it comes due in November.
Closing After Nov 15: You have likely already paid the taxes for the year. The buyer will reimburse you for the days they own the home (Closing Date through December 31).
HOA Fees If you live in a neighborhood with a Homeowners Association - which is very common in Cumming - you will need to settle up with them.
Prorated Dues: Like taxes, you will be credited or debited based on whether you paid your annual or monthly dues upfront.
Transfer Fees: Many management companies charge a "transfer fee" or "initiation fee" to process the paperwork for the new owner. These can range from $200 to $500 or more, and the contract will specify who pays this.
Potential Negotiable Costs and Concessions
Beyond the mandatory fees, there are costs that arise during the negotiation process. These are strategic moves to get the deal to the finish line.
Owner's Title Insurance: While the buyer pays for their lender's insurance policy, they may ask you to pay for their Owner's Title Policy. In a buyer's market, this is a common concession sellers make to sweeten the deal.
Home Warranty: It is common for sellers to purchase a one-year home warranty for the buyer. This costs roughly $500 to $700 and protects the buyer against appliance failures in the first year.
Repair Concessions: If the home inspection turns up issues - like a foggy window or an aging water heater - you might agree to a "credit in lieu of repairs." This reduces your net proceeds but saves you the hassle of hiring contractors before moving out.
Closing Cost Credits: Sometimes, to help a buyer afford the upfront cash needed to buy the home, a seller will agree to contribute a set amount (e.g., $5,000) toward the buyer's closing costs.
Calculating Your Net Proceeds in Cumming
To get a rough estimate of what you will walk away with, you can use this simple "napkin math" formula.
Gross Sale Price: $_________
(Minus) Mortgage Payoff: $_________
(Minus) Commissions (Listing + Buyer): $_________
(Minus) GA Transfer Tax ($1 per $1k): $_________
(Minus) Attorney & Recording Fees: $_________
(Minus) Prorated Taxes / HOA: $_________
(Minus) Repairs / Concessions: $_________
= ESTIMATED NET PROCEEDS: $_________
Every transaction is different. If you are thinking about selling a home in Cumming, the best first step is to ask a local agent for a "Seller's Net Sheet." This is a detailed estimate based on your specific mortgage payoff and current market rates.
Frequently Asked Questions
Who pays for title insurance in Georgia, buyer or seller?
This is entirely negotiable. The buyer always pays for the Lender's Policy (required by the bank). However, the Owner's Policy is optional; in a balanced or buyer's market, the seller often pays for this as a concession, but in a strong seller's market, the buyer often pays it themselves.
How much are closing costs for a seller in Georgia?
A safe rule of thumb is to budget 5% to 8% of the final sale price. This covers the real estate commissions (usually the largest portion), the Georgia transfer tax ($1 per $1,000), attorney fees, and prorated taxes.
Are closing costs tax deductible for sellers?
Generally, closing costs are not fully deductible as a standard expense, but they do lower your "cost basis." This means they reduce the amount of capital gains tax you might owe on the profit. You should always consult a tax professional for your specific situation.
When are property taxes due in Forsyth County?
Forsyth County property taxes are due on November 15. If you close before this date, you will credit the buyer for your portion of the year; if you close after paying the bill, the buyer will reimburse you for the remainder of the year.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Real estate laws and tax codes change frequently. Please consult with a licensed real estate attorney or tax professional for exact figures regarding your specific transaction.
