When you decide to sell your Chicago home there will be closing costs. The selling price isn’t the most important number. The bottom line walk away number is. The number after all of the expenses are taken out. Understanding your closing costs will help you have an idea of what this amount will be. Let’s discuss typical Chicago closing costs.
Attorney Fees - Illinois is an Attorney state. Attorneys are required to close real estate transactions. Attorney fees will be in the $450- $700 range.
Real Estate Tax Proration- The seller has to credit the purchaser in Illinois with a credit for their share of unpaid taxes. In Illinois taxes are paid in arrears. That means that taxes are paid one year behind. This really isn’t an expense since you were living in the home for the time the taxes are for. Sellers should plan on crediting the buyers a full year of taxes.
Transfer Stamps and Taxes - The seller in Illinois pays for the state and county transfer taxes. The state transfer tax is $1.00 per thousand. In Chicago the city tax is $3.00 per thousand. County transfer tax is $.50 per thousand dollars.
Existing Loan Payoff - This is what you need to payoff the debt owed on your property.
Title Fees - This amount depends on the title company and the sales price of the home. The majority of title companies will be around $1,300(100k purchase price) to $3000 ($1,000,000 sales price) range. Each company will also have some extra title fees as well.
Real Estate Agent Commission- The commissions on the transaction should be in the 5%- 6% range of the sales price. This is an amount that is divided up between both the buyers and sellers real estate agents. Good agents earn this commission by making sure that you get top dollar for your home while making sure the entire process goes smoothly through the closing.
The fees mentioned above are most of the fees that you will encounter when selling your home. If you would like a net sheet on your home to give you an idea of expenses and what your walk away dollar amount will be please contact me at email@example.com.