There are many costs in the sale of a home.
Strictly answering your question, here is an response I posted earlier that exlplains closing costs:
You ask your REALTOR to refer you to an escrow or title company (depending upon who prepares closing documents in your state)
Generally they include:
PAYOFF CHARGES - FIRST MORTGAGE
Estimate For Termite Report/Completion
Estimate for Home Warranty
Disclosure Source NHD Disclosure
Department of Building & Safety 9A Report
Department of Building & Safety Certificate of Compliance
Owners Title Policy Fee (S) to SELLERS CHOICE
Documentary Transfer Tax
City Transfer Tax
Drawing Grant Deed
Wire fee if any
Total all of all charges:
If the total closing charges exceed the sales price, then the next item will be
Funds required to close (meaning you need to bring a check to the closing table.
If there is a positive number (known as net proceeds), then you receive a check at closing.
The actual amount can be relatively accurately estimated. At the time you consult with a Realtor regarding listing your home for sale you should discuss your estimate of the net proceeds. If he/she does not bring it up, you should.
The single most important factor affecting net profit or proceeds is market time. My research consistently shows that properties that sell within the first three or four weeks net the most. The amount that you net AFTER closing is the number on which to focus.
My broker sets my rate. I agreed to honor this rate when I signed on to his agency. I am a professional and make no apologies for what I believe to be an honest days pay for an honest days work.
In Southern California I sold a home in November 2006 - I offered an additional .5% commission to the selling agent on the suggestion of my realtor. I wanted to be competitive in a market that was starting to slow to a crawl.
I had a fantastic product - I made it a deal worth buying - and we (my agent & I) sold it under the worst of conditions - above all other competition in the subdivision.
What was my cost? Irrelevant to what my "loss" would have been had I not sold when I did....
If I was a seller, I would pay more attention to what the services the agent are providing and what the agent track are at selling homes in that area. Commission should be second, because who cares what the commission is if your home are not going to sell anyways.