So you’re selling your house in the Chicago area? Great, but what is the cost of selling a house in Chicago?
Yes, there are more than a handful of costs associated with selling your house. My goal in this article is to give you a good idea on the true cost of selling a house in our market. Some costs and fees are more common than others, so let’s dig in to see what they are.
A Breakdown Of The Cost Of Selling A House…
Taxes – Before selling your home, you have to make sure the property tax bill is current. In Cook County property taxes are billed in two installments a year in arrears, so you will have to give whoever is buying your house a credit for the upcoming tax bill for your unpaid share of real estate taxes.
For example lets take some of my good friends from the Chicago Bulls as an example :
Derrick is moving to New York & selling his house to Dwayne, who is moving back home from Miami. Even though Derek makes millions he demanded to know the costs of selling a house in Chicago. One of the costs deducted from the proceeds of the sale is that Derek must give Dwayne a tax credit for his unpaid share of real estate taxes.
The sale is set to close in August of this year, so Derrick will need to give Dwayne a credit at closing for this year’s taxes from January – August, for the time he was still the owner. The current year’s taxes will be due next year, after Dwayne has already moved in so this way Derek will give him a tax credit now deducted from his proceeds and Dwayne will assume all responsibility of payments going forward.
Confused yet?? That’s ok, just call me and I can explain it better if need be. That’s how I roll….
Transfer Taxes – As with anything there are taxes to pay when you buy or sell real estate. This is a cost of selling a house in Chicago that many sellers do not think of. There are 3 taxes paid upon the transfer of real estate; state, county, and city taxes. The seller is responsible for the state ($1.00 per $1,000) and county transfer taxes ($0.50 per $1,000). In the City of Chicago they are also responsible for $3.00 per $1,000 of the city transfer tax. The total cost of selling a house in Chicago in regards to transfer stamps is $4.50 per $1,000.
Attorney fees – While it’s not required by law, it is strongly suggested that you hire an attorney for any legal transaction. This is another cost to selling a house in Chicago. Even if you hire a good Realtor® like me, that’s been involved in plenty of transactions – we’re still not able to give legal advice.
Facilitating a real estate transaction is not rocket science, but its customary that an attorney be involved in your closing. Get a good lawyer, and it’ll cost around $500-$750 for priceless peace of mind.
Title Fees – When you close on your home there are title fees involved. It’s customary for you to purchase title insurance for the buyer as an additional cost to selling a house. This is a good faith move to protect the buyer in case there’s an issue with the home’s ownership history. This will usually cost somewhere around $1200 on the lower end, but is based on the overall sales price of your property. The higher the cost of the property, the higher the title fees.
Optional Cost(s) Of Selling A House In Chicago
We’ve gone thru most of the unavoidable costs of selling a house in Chicago, but there’s other things that you may or may not want to pay for, based on your situation.
Staging – It’s very good practice to remove clutter & give your home a deep cleaning before putting your home on the market. If you want to take it a step further, you may want to hire a home stager to make your home even more visually appealing. They may rearrange or even rent furniture and paint walls, and will run you about $1000 for their services.
Repairs – Once a buyer has found your home and had a home inspection, there’s a good chance they will request that some repairs be made based on the report. In lieu of repairs, they may request a credit at closing instead.
Closing Cost Credits – Home buyers have a number of fees that they are responsible for themselves, particularly when getting a mortgage. In most cases, the seller can contribute a portion of the fees on behalf of the buyer. In slower markets this is fairly common, and can range from 3-6% of the sales price.
Marketing – If you choose to sell your home without a Realtor®, you will be responsible for all of your own marketing costs. I won’t go too deep in to that here, but you can check out another post I wrote on my marketing plan.
Realtor® Commissions – This is a big sticking point for some people. In addition to the marketing plan I just mentioned, you get a dedicated professional and their skill set to help manage the transaction and get your home sold. You get access to our connections and our expertise to ensure that your home gets sold for the highest price in the shortest amount of time. I’m no magician, but I’m a helluva marketer and will set realistic expectations up front and keep you updated from start to our closing date.
Still not convinced? Here’s a list of what we do for each and every client we help.
So, as you can see – the costs of selling a house is much more involved than getting a check & going to Vegas. You can expect to pay roughly 7-8% in fees. Some people might think that’s high, but if you hire a good Realtor with a REAL marketing plan these costs can pay for themself. If you’re thinking of selling, call me to make sure I can get you the highest possible amount.
I hope this article helped you understand the cost of selling a house in Chicago! Please let me know if you have any additional questions.