Buying or selling a home in Chicago (and anywhere for that matter) is a time and labor intensive process involving many moving parts and several people are involved to make sure the transaction goes smoothly, protect you from unforeseen issues, and help you get the best deal. These people need to be paid for their services and because of that, it’s important to know the city of Chicago real estate closing costs that are part of most transactions.
These can and will greatly vary based on a number of factors such as who your lender is (if taking out a mortgage), the type of property it is, where the home is located, your financial status, etc.
The following list outlines some traditional closing costs for a home sold in Chicago. It is meant to be a guide so you’re prepared when considering buying or selling your home in Chicago.
|Closing cost item||Typical Cost||Who Pays?|
|Commission||6% of purchase price||Seller|
|Appraisal||$250 – $500||Buyer|
|Credit Report||$30 – $75 per borrower||Buyer|
|Lender-direct underwriting fee||$750 – $1,000||Buyer|
|Flood Certificate||$50 – $100||Buyer|
|Tax Service||$85 – $200||Buyer|
|Settlement closing||$250 – $1,000||Buyer|
|Title Insurance (buyer)||$250 – $1,000||Buyer|
|Title Insurance (seller)||$300 – $2,000||Seller|
|Recording fee||$75 – $250||Both|
|State Transfer Tax||$1.50 per $1,000||Seller|
|County/City Transfer tax||$3.00 per $1,000||Seller|
|Chicago City Transfer Tax*||$7.50 per $1,000||Buyer|
|Survey||$500 – $1,000||Seller|
|Interest per day||Loan amount x rate/365||Buyer|
|Escrow Taxes||1-5 months (if applicable)||Buyer|
|Escrow Insurance||1-5 months (if applicable)||Buyer|
|Tax Proration||105 – 110% of last tax bill||Seller|
^Estimated closing costs courtesy of Guaranteed Rate. Prices subject to change. Actual costs vary per lender, loan amount, property type, and other factors.
*Property transfer taxes vary per local jurisdiction of township. Please consult your real estate attorney to obtain the best possible estimate for taxes and other closing costs.
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