Tennessee vs Georgia Closing Costs, Explained

Thinking about a home in Downtown Chattanooga but also eyeing nearby Georgia towns like Rossville or Ringgold? You are smart to compare closing costs before you fall in love with a property. The fees you pay at closing can shift depending on the state, county, and even local custom, and small differences can add up.

If you want clarity on what you will pay and why, you are in the right place. This guide explains typical closing cost line items, how Tennessee and Georgia differ around Chattanooga, and what to ask so you can budget confidently. You will also see simple scenarios that show how the numbers might look at your price point. Let’s dive in.

What closing costs include

Closing costs cover the services and taxes needed to transfer property and fund your loan if you are financing. Some fees are buyer-side, some are seller-side, and many items are negotiable.

Buyer-side items you may see

• Lender fees if financing, such as origination, underwriting, and processing.
• Appraisal and credit report fees.
• Title search, title exam, and a lender’s title insurance policy if you have a loan.
• An owner’s title insurance policy, which is often provided by the seller in many Southern markets, but local custom varies by county.
• Escrow or settlement fee paid to the title company or closing attorney.
• Recording fees for the deed and, if applicable, your mortgage.
• Prepaid property taxes and homeowners insurance, prorated based on your closing date.
• Prepaid interest from funding to your first mortgage payment.
• Survey, pest or termite inspection when required, plus HOA transfer or estoppel fees if applicable.
• Miscellaneous items like notary, courier, flood certification, and HOA documents.

Seller-side items you may see

• Realtor commission, which is often the largest seller expense.
• An owner’s title insurance policy in many transactions, depending on local custom.
• Payoff of the seller’s mortgage, liens, and any release fees.
• Transfer or recording taxes and deed-recording fees, which vary by state and county and can be negotiated.
• Prorated property taxes and any unpaid HOA dues.
• Escrow or settlement fee, which is sometimes split or paid by the seller.
• Repairs, concessions, or credits negotiated in the contract.

Tennessee vs Georgia: key differences

You will see many of the same categories in both states, but the details and who typically pays can differ across the line.

Transfer and recording taxes

• Both Tennessee and Georgia have fees connected to transferring real property. Rates and typical payers vary by state and county, and local custom can matter.
• These taxes are usually modest relative to total closing costs, though they can still affect your net by hundreds or thousands of dollars depending on price and county rules.
• For exact amounts, confirm with the county recorder or a local title company for your specific address and closing date.

Title insurance and who pays

• Title insurance is customary in both states. The party who pays the owner’s policy depends on local practice and negotiation.
• In many Southern markets sellers often provide the owner’s policy, but customs can differ between Hamilton County and nearby Georgia counties. Always confirm with your agent and closing company before you write your offer.

Mortgage recording or intangible taxes

• Some states impose a mortgage-related tax when you record a new loan. Whether this applies and the amount will show on your Loan Estimate from your lender if you are financing.
• Ask your lender and title company early so you can compare the total cost of financing in Tennessee versus Georgia.

Settlement and closing agents

• In the Chattanooga area, residential closings are commonly handled by title companies. Attorneys may be involved based on local practice or lender preference.
• You usually do not need to hire your own attorney to close in either state for a standard residential purchase unless you prefer to.

Property taxes and homestead exemptions

• Property tax millage rates and timelines for exemptions vary by county. Tennessee and Georgia have different homestead exemption rules and deadlines.
• This impacts your long-term budget more than your one-time closing costs, but it is smart to verify before you buy.

HOA, utilities, and local fees

• HOA transfer fees and municipal utility setup charges can differ across city and county lines.
• Ask for HOA documents and fee schedules early so there are no surprises at closing.

Cross-border living considerations

• If you live in one state and work in the other, your broader tax picture can change. Tennessee does not have a general income tax on wages, while Georgia does. This is not a closing cost, but it affects your long-term budget planning.

City Center vs nearby Georgia: local context

If you are shopping in City Center and other Downtown Chattanooga neighborhoods, you are in Hamilton County, Tennessee. Many buyers also explore nearby Northwest Georgia options like Rossville and Fort Oglethorpe in Catoosa County, Lookout Mountain and LaFayette in Walker County, or Trenton in Dade County.

• In Hamilton County, a local title company will handle settlement, and the Register of Deeds records your documents. Property tax prorations are standard at closing, and due dates and rates are administered by county offices.
• In Catoosa, Walker, and Dade counties, county clerks and recorders set their own recording charges and procedures. Customs for who pays the owner’s title policy and transfer taxes can differ from what you may see in Tennessee.
• Before you write an offer, ask your title company for a sample settlement statement for the specific county. Small line-item differences in title premiums, recording fees, and transfer taxes can shift totals by a few hundred dollars, and in some cases more.

What it might cost: simple ranges

Every transaction is unique, but these planning ranges help you set expectations.

• Buyer closing costs typically total about 2% to 5% of the purchase price when you are financing. This includes lender fees, title charges, and prepaids like taxes and insurance.
• Seller closing costs typically total about 6% to 10% of the sale price when you include realtor commissions. Without commissions, many sellers still pay about 1% to 3% for title, transfer, recording, and other items.

Sample calculation at $300,000

• Buyer estimate at 2% to 5%: roughly $6,000 to $15,000. Examples include appraisal, lender fees, title and closing fees, recording, and prepaids.
• Seller estimate at 6% to 10%: roughly $18,000 to $30,000. This includes commission, an owner’s title policy if customary, payoff and release fees, prorated taxes, transfer and recording taxes, and any negotiated credits.
• Cross-border nuance: At the same $300,000 price, buyers and sellers in Catoosa, Walker, or Dade counties may see slightly different title premiums, transfer taxes, and recording fees than in Hamilton County. These differences can shift totals by a few hundred dollars, and depending on negotiations and county specifics, sometimes more.

Two quick scenarios

A) Downtown Chattanooga condo at $300,000, financed

• Likely buyer items: lender fees, appraisal, credit report, title search and exam, lender’s title policy, settlement fee, recording for deed and mortgage, prepaid interest, prorated taxes and homeowners insurance, possible HOA transfer fee, and miscellaneous recording or courier charges.
• Possible seller items: realtor commission, owner’s title policy if customary, transfer or recording taxes depending on local practice, prorated taxes and HOA dues, payoff and release fees, and any negotiated repairs or credits.
• What changes your total: your loan type, points, and whether the seller covers certain title or closing fees per local custom and your contract.

B) Rossville, GA single-family home at $300,000, cash purchase

• Likely buyer items: title search and exam, a settlement fee, deed recording, and any HOA transfer fees. No lender fees, no appraisal requirement from a lender, and no prepaid mortgage interest.
• Possible seller items: realtor commission, owner’s title policy if customary in the county, transfer taxes or stamps per county and state rules, prorated taxes, payoff and release fees, and negotiated credits.
• What changes your total: county-level customs for who pays the owner’s title policy, specific recording and transfer amounts, and whether the seller agrees to cover certain fees in your offer.

Cross-border checklist for buyers

Use this quick list to compare two properties, one in City Center and one just across the state line.

• Ask your title company for a sample settlement statement for each address.
• Confirm who typically pays the owner’s title policy in that county, and note what your purchase contract says.
• Verify transfer and recording taxes for that county, and which party usually pays.
• Ask your lender to refresh your Loan Estimate for each property address.
• Request HOA transfer and move-in fees, plus any estoppel charges.
• Confirm utility setup or tap fees for the municipality.
• Ask about survey needs and whether the seller has a recent one.
• Check property tax millage rates and homestead exemption timelines for the county.

How to get exact numbers

• Call the county recorder or register of deeds for recording and transfer fees for your specific transaction.
• Ask a local title company for a fee quote and a sample Closing Disclosure or HUD-style estimate.
• If you are financing, request a Loan Estimate from your lender and later review your Closing Disclosure. These disclosures show lender fees, title charges, and any mortgage-related taxes that apply.
• Request a seller net sheet if you are selling so you can see your estimated proceeds.
• Compare quotes from at least two title companies if you want to validate settlement and title charges.

Common pitfalls to avoid

• Assuming customs are the same on both sides of the line. They are not always.
• Forgetting prepaids like homeowners insurance and property tax escrows, which can be a meaningful part of buyer totals.
• Overlooking HOA or condo transfer and document fees.
• Waiting until the last week to ask about transfer taxes or recording charges.
• Skipping an owner’s title policy without understanding the risk.

Plan your move with local guidance

Cross-border shopping is common for City Center buyers and sellers, and a clear plan helps you keep the numbers straight. A local team can coordinate quotes, verify county practices, and structure your offer so the right party pays the right fees.

If you want a clear, step-by-step estimate for your property, reach out to the family team at Putnam Property Group. We will help you compare Tennessee and Georgia options and line up the right closing partners so you can move forward with confidence.

FAQs

Who pays the owner’s title policy in TN vs GA?

• It depends on local custom and negotiation. In many Southern markets the seller provides it, but practices vary by county, so confirm with your agent and closing company before you write your offer.

Are there transfer taxes when buying across the TN–GA line?

• Yes, both states and counties impose transfer or recording taxes in some form. Rates and typical payers differ, so verify current amounts with the county recorder or your title company.

Do I need an attorney to close in Tennessee or Georgia?

• For standard residential deals you usually do not. Closings are commonly handled by title companies or closing attorneys based on local practice and lender requirements.

Will my lender disclose closing costs in advance?

• Yes. If you are financing, you will receive a Loan Estimate early and a Closing Disclosure before settlement. Use these to compare and ask questions.

How are property taxes handled at closing in both states?

• Property taxes are routinely prorated between buyer and seller based on the closing date in both Tennessee and Georgia.

How much should I budget as a City Center buyer comparing a GA option?

• As a starting point, plan for about 2% to 5% of the purchase price in buyer closing costs when financing, then confirm county-specific taxes, title customs, and HOA fees for each address.