What are the Georgia transfer tax exemptions?
The standard Georgia real estate transfer tax exemptions usually apply to property transfers in certain situations. These include deeds of gift, transfers between spouses during a divorce, or sales where the consideration is less than $100. The seller does not qualify for an exemption in a standard retail home sale, thereby requiring to pay the transfer tax rate of $1 per $1,000 of the sale price. But if you want to avoid paying this out of your equity, you can sell it to a professional cash buyer like Assured Property Solutions. After the sale, we handle the transfer tax and all other closing costs while you take a cash offer and walk away clean.
Every other seller I work with in Columbus, GA and the surrounding area has a tax question or two when it comes to the house they want to offload. I can understand why they ask these questions. You see, there was one client in particular that did the math in his head just to get a clear idea of what he would walk away with were he to sell the home the traditional way. “I did the research and was quite shocked with what I found out,” he told me. “I could try for exemptions or cut corners somewhere. But I’m not sure if that’s possible.” Yes, the Georgia Property Transfer tax is something that had many sellers second-guessing themselves at first when the decision to sell traditionally was about to be made.
I did reply to him that there were transfer tax exemptions. But it would depend on whether he qualified for them or not. I told him rather than play the guessing game and risk all that equity, I pitched a cash offer to him and he accepted. At Assured Property Solutions, we won’t play those guessing games about how much of the proceeds you keep. It’s a cash offer that is fair and given to you quickly in as little as 7 to 14 days.
What is the Georgia Real Estate Transfer Tax?
I cannot believe that many sellers would lose out on extra cash due to the GA transfer tax. This is the state tax that is charged when the ownership changes hands. It applies to home, lands, and investment properties. As I mentioned earlier, it’s $1 for every $1,000 of the sale price. So let’s crunch some numbers here:
- If the sale price is $340,000, then you pay a transfer tax of $340.
Oh yeah, I almost forgot to add on more numbers. There’s the 6 percent agent commission. In this example, that’s a little over $20,000. Then you have the closing costs on top of that ranging from $3,000 to $5,000. If there are any repairs, that’s thousands more. This so-called “small tax” snowballs into something more costly. Why go through all of that when you can go to a professional home buyer that gives you a cash offer in Columbus so you don’t have to deal with all of that instead of holding a seemingly near empty bag?
Who Pays Transfer Tax in Georgia?
Technically, you’ll want to look at the purchase agreement. That’s because the cost is assigned to either party. Yet, nine times out of ten, you’ll see the seller pay the transfer tax. I don’t know of any buyers that cover it in MLS transactions. The transfer tax is to be expected as well as the closing cost and commissions to come out of the proceeds.
The Few Available Georgia Transfer Tax Exemptions
I have been dealing with a lot of home sellers during my time in this business. I feel like I’ve seen it all and heard a lot of the sweet nothings traditional real estates talk about to buyers and sellers. Not to mention, I learned a lot about the Georgia transfer tax exemptions and how they apply. So let’s go over which ones and what criteria needs to be met:
- Deeds of Gift: If you transfer property with no money exchange, you may qualify for this exemption in particular.
- Transfers under $100: If such considerations are $100 or less, no tax is applicable here.
- Divorce settlements: Property transfers between divorcing spouses may result in a tax exemption for both parties.
- Government transfers: If the sale involves government entities, you may qualify for a Georgia transfer tax exemption
It’s important to note that if you are selling your house for market value, you won’t qualify for those exemptions above. Traditional sellers fume after knowing this. The thing I can say is that there is no loophole for normal house sales. The amount of people I wish I could tell ahead of time before they made those costly mistakes grows by the day.
The Commercial Solution: How to Legally Avoid the Tax
Before you even think about listing your home, I want to remind you that you pay the transfer tax, closing costs, and the agent commissions. It all comes out of your equity. The best solution moving forward is simple, you contact Assured Property Solutions. Since we do things differently, we cover the tax and costs. Best of all, no agent commissions.
We buy houses in Midland and will make sure that you’re getting the best cash offer that is fair. Why should your house sit on the Columbus housing market for so long when you can just sell it in mere days?
One gentleman I sold to would have lost out on $20,000 had he not reached out to us. I told him he made the right decision before I gave him a cash offer that covered everything. The simplest deal you could ever find no matter what the Georgia Market Trends show us.
Bypassing the Traditional Market in Columbus, GA
If the goal is to keep more of your equity, you can go with a professional cash buyer who will make sure that’s possible. You get no repairs required, meaning we won’t ask for the home to be inspected nor ask for repairs or credits. We buy the house in as-is condition. Plus, we get it done fast without the bank approvals, appraisals, or buyer financing so you can close in days, not months.
Finally, there are no rude surprises at closing. No cost changes, credit negotiations, or deals that die before they are ever discussed. You get a clear offer, a clear timeline, and no last-minute deductions. How does that sound to you? I don’t think I’ve ever gotten a single “no” from anyone with that kind of offer. Especially if they plan to sell as-is in Auburn, AL and surrounding areas.
So let me put it to you like this: do you want to lose out on potentially thousands of dollars and months of your time selling a house via the old fashioned way? Or do you want to go with a professional cash home buyer that will take the home off your hands in days. All while you keep the necessary proceeds from the cash offer we give you. We’d be shocked if you didn’t go with the latter.
FAQ: Navigating the Transfer Tax in Georgia
Is the Georgia transfer tax tax-deductable?
Not directly. You cannot deduct it as a property tax. However, it can be added to your cost basis or subtracted from your sales price, potentially reducing your capital gains. Please confirm with a CPA if you’re unsure of this.
Do I pay the transfer tax if I am refinancing my mortgage?
No. Refinancing doesn’t indicate a transfer of ownership. But bear in mind that you may pay an intangible recording tax on the new loan. Please be sure to ask your lender about any questions regarding that.
What if I inherited the property from a deceased relative?
Selling an inherited property in Georgia doesn’t trigger a state inheritance tax. But you could be subject to a federal capital gains tax based on a “stepped-up basis”. I have worked with homeowners who have been in this situation before and they sell to my team and I just to avoid this.
Conclusion: Keep Your Equity Where It Belongs
If you don’t want to contend with the confusing sales taxes, high realtor commissions, or unexpected closing fees that drain your equity, a cash offer can be best suited for you. The traditional route is more expensive than you can ever imagine. But there’s an option that allows you to skip all of that and sell fast.
That’s why my team and I at Assured Property Solutions can be ready to assist you. It starts with getting in touch with us to schedule a 15 minute property discovery. From there, we give you a cash offer in 24 hours and we close as little as 7 to 14 days. Don’t wait any longer than you need to. Avoid the transfer tax and additional costs by contacting Assured Property Solutions now.