Closing Costs in Chicago: A Guide for Sellers
Selling your Chicago home? Understanding closing costs is key to a smooth transaction. Closing costs represent a variety of fees and expenses you’ll need to pay when finalizing your home sale. These can range from real estate agent commissions to property taxes and more.
In this quick guide, we’ll explore how closing costs work in Chicago and outline the expenses you can expect when selling your home in the city. With this information, you’ll be better prepared to handle your sale’s financial aspects and move forward confidently.
Disclaimer: This article provides estimates of a seller’s closing costs that are meant for educational and research purposes only; our calculations are not a guarantee.
What are closing costs?
Closing costs are the various fees involved when finalizing a property sale. These can include a range of expenses, such as property taxes and insurance, which are typical for most transactions. Some costs, like transfer taxes, can differ based on the location of your home. To learn more about closing costs, it’s important to understand how they impact your final sale amount.
Mortgage/Loan payoff amount
When selling your home, one important financial step is paying off your mortgage through what’s known as the loan payoff amount. This figure represents the remaining principal balance on your mortgage, along with any accrued interest up to the payoff date. The loan payoff amount may also include additional fees that must be settled to close out the loan fully.
To finalize the sale, the loan payoff amount must be paid in full.
Property taxes
According to WalletHub, Illinois ranks 50th in the country in terms of property taxes, placing it below states like Connecticut and New Hampshire.
Real estate in Chicago is taxed at a rate of 2.7%, with a median home value of $375,000. To get a better idea of what you might owe, consult a property tax calculator.
