One of the most common questions sellers ask me is:
“If I sell my house for $500,000, how much do I actually walk away with?”
The answer is not simply the sales price minus your mortgage.
There are several expenses that may come out of a seller’s proceeds at closing, and there are also costs that belong to the buyer unless the seller agrees to pay them as part of the negotiation.
That distinction is especially important in Georgia.
Here’s what sellers should understand before evaluating an offer.
1. Real Estate Brokerage Compensation
Real estate brokerage compensation is one of the larger expenses that may be associated with selling a home.
There is no standard or legally required commission percentage. Brokerage compensation is negotiable and should be clearly addressed in your agreements.
Depending on how the transaction is structured, a seller may be paying compensation to their listing brokerage and may also agree to contribute toward the buyer’s brokerage compensation.
When reviewing an offer, sellers should understand exactly what compensation they have agreed to and how it affects their estimated net proceeds.
2. Mortgage Payoff and Other Liens
If you still have a mortgage on your property, the remaining balance will generally be paid off from your proceeds at closing.
The same applies to other liens or debts that must be cleared in order to transfer good title to the buyer.
These may include:
First or second mortgages
Home equity lines of credit
Tax liens
HOA or condominium liens
Judgments attached to the property
Other recorded liens
These amounts are technically not all “selling expenses,” because they may represent money you already owed. However, they absolutely affect how much money you ultimately receive from the sale.
The Georgia Association of REALTORS® explains that at closing, the closing agent deducts the existing mortgage and other transaction costs from the amount credited to the seller.
3. Seller-Side Closing Expenses
There may also be expenses associated with transferring the property.
Depending on your particular transaction and contract, these may include items such as:
Georgia transfer taxes
Mortgage payoff or release charges
Attorney or settlement-related charges
HOA or condominium closing fees
Prorated property taxes
Other charges assigned to the seller under the purchase agreement
Every closing statement looks a little different, which is why I recommend reviewing an estimated seller net sheet when you list the property and again when you receive an offer.
4. Repairs and Inspection Negotiations
Another potential seller expense can arise after the buyer conducts inspections.
A buyer may request that the seller:
Complete certain repairs
Reduce the purchase price
Provide a repair allowance
Contribute additional money toward the buyer’s closing costs
But a buyer making a request does not automatically mean the seller must agree.
Repairs and concessions are part of the overall negotiation and depend on the contract, the condition of the property, market conditions, and the strength of the buyer’s offer.
5. What About the Buyer’s Closing Costs?
This is one of the most important areas for sellers to understand.
Buyers have their own closing expenses.
Depending on whether they are financing the property, those expenses may include things such as:
Loan origination or lender fees
Appraisal fees
Title-related expenses
Government taxes and recording fees
Homeowner’s insurance
Prepaid interest
Property tax and insurance escrow deposits
Other lender-required expenses
The Consumer Financial Protection Bureau identifies title insurance, government taxes, appraisal charges and prepaid expenses among common mortgage closing costs.
These buyer expenses do not automatically become the seller’s responsibility.
If a buyer wants the seller to help pay those costs, that request needs to be negotiated into the offer.
For example:
Purchase Price: $500,000
Seller Contribution Toward Buyer Closing Costs: $10,000
From the seller’s perspective, this is not simply a $500,000 offer.
It is a $500,000 offer with a $10,000 seller concession.
That is why sellers should evaluate the net offer, not just the purchase price.
6. Who Pays Owner’s Title Insurance in Georgia?
This is an area where I see quite a bit of confusion.
There are two different types of title insurance that buyers may encounter.
Lender’s Title Insurance
If the buyer is financing the property, the mortgage lender will typically require a lender’s title insurance policy.
That policy protects the lender, not the homeowner.
The Consumer Financial Protection Bureau explains that lender’s title insurance is usually required when obtaining a mortgage.
Owner’s Title Insurance
Owner’s title insurance is different.
It protects the homeowner if certain title problems arise from before they purchased the property—for example, if someone later makes a covered claim against ownership of the home.
The CFPB explains that owner’s title insurance protects the homeowner from certain pre-existing title claims.
Most importantly:
Owner’s title insurance is generally optional for the buyer.
The CFPB's title insurance guidance specifically explains that while lender’s title insurance is generally required by the mortgage lender, a buyer may choose to purchase an owner’s policy to protect their own financial interest in the home.
So does the seller have to pay for the buyer’s owner’s title insurance in Georgia?
No—not automatically.
In a typical Georgia transaction, owner’s title insurance is generally treated as part of the buyer’s closing costs.
However, just like many other terms in a real estate contract, who ultimately pays a particular expense can be negotiated.
If a buyer wants the seller to contribute toward the buyer’s closing expenses—including money that may ultimately help cover title insurance—the buyer should negotiate that contribution when writing the offer.
A seller can agree to it.
A seller can negotiate the amount.
Or a seller can decline it.
What matters is what the parties ultimately agree to in the contract.
7. Seller-Paid Closing Costs Are a Negotiation
This is probably the biggest misconception I want sellers to understand.
Sometimes you will hear:
“The seller normally pays the buyer’s closing costs.”
That is not quite accurate.
A buyer can ask the seller to contribute toward closing costs.
Whether the seller agrees depends on the deal.
For example, a buyer might offer:
$510,000 purchase price
with $15,000 in seller-paid closing costs
Another buyer might offer:
$500,000 purchase price
with no seller-paid closing costs
At first glance, the $510,000 offer sounds better.
But after giving the buyer $15,000 back at closing, the second offer could actually produce a better result for the seller depending on the rest of the terms.
That is why we don't evaluate an offer based only on the big number at the top of the contract.
We look at the entire financial picture.
8. How Much Seller Credit Should a Buyer Ask For?
From a seller's standpoint, this is also important to understand.
When a buyer asks for a seller contribution, the amount should be clearly negotiated when the offer is written.
The buyer may ask for:
A specific dollar amount
A contribution toward allowable closing costs
A concession tied to repairs
Another negotiated credit
Exactly how much a buyer can actually use may also depend on the buyer's loan program and lender requirements.
So when I represent a seller, I want to know:
How much is the buyer asking for?
Why are they asking for it?
How does it affect my seller's bottom line?
And most importantly:
Is the overall offer still good for my seller?
9. The Highest Offer Is Not Always the Best Offer
Consider these two simplified offers:
Offer A
Purchase price: $505,000
Seller contribution toward buyer closing costs: $15,000
Offer B
Purchase price: $495,000
Seller contribution: $0
Just looking at the sales price, Offer A appears to be $10,000 higher.
But after accounting for the $15,000 concession, Offer B may actually provide the seller with more money before considering the other transaction expenses.
And price is only one part of the equation.
We also need to consider:
Financing strength
Due diligence terms
Appraisal risk
Closing timeline
Earnest money
Repair requests
Contingencies
Seller concessions
Probability of actually reaching closing
The best offer is the offer that gives the seller the best combination of net proceeds, terms and certainty.
10. Before You Accept an Offer, Know Your Net
This is why I strongly believe sellers should understand their estimated net proceeds before accepting an offer.
When we review an offer, I want my sellers to know:
What is the actual purchase price?
What expenses am I responsible for?
How much is the buyer asking me to contribute?
What mortgage or liens need to be paid off?
What other contractual costs am I agreeing to?
And finally:
“How much am I actually walking away with?”
Selling a home should not feel like discovering a long list of unexpected charges at the closing table.
A good real estate strategy means understanding the numbers before you sign the contract.
The goal isn't simply to get the highest offer.
The goal is to negotiate the best overall result for the seller.
Sources
Consumer Financial Protection Bureau — What is owner’s title insurance?
Explains the purpose of an owner’s title insurance policy and how it protects the homeowner.
Consumer Financial Protection Bureau — What is lender’s title insurance?
Explains that lender’s title insurance protects the mortgage lender and is usually required when obtaining a mortgage.
Consumer Financial Protection Bureau — Shop for title insurance and other closing services
Explains the distinction between lender’s title insurance and a buyer’s decision to purchase owner’s coverage.
Consumer Financial Protection Bureau — TRID Title Insurance Disclosures Factsheet
States that owner’s title insurance is typically not required by the creditor and is optional for the consumer.
Consumer Financial Protection Bureau — What fees or charges are paid when closing on a mortgage?
Identifies common buyer closing costs including title insurance, appraisal charges, taxes and prepaid expenses.
Georgia Association of REALTORS® — Consumer Resources for Buyers
Provides information about the Georgia closing process and explains that mortgage balances and transaction costs are deducted during settlement.
Georgia Association of REALTORS® — 2026 Contract Forms
GAR publishes the current Georgia Purchase and Sale Agreement and related contract forms governing the negotiated terms of Georgia real estate transactions.
This article is intended for general educational purposes regarding Georgia real estate transactions. Closing expenses and contractual responsibilities vary by transaction. Buyers and sellers should review their specific purchase agreement and closing documents and consult the appropriate legal, tax, lending or insurance professionals when necessary.
