What Closing Costs Should Sellers Expect?

When you’re preparing to sell your home, it’s easy to focus on one number: the sale price.

But the amount you walk away with at closing isn’t the same as the price your home sells for. Sellers typically have several expenses deducted from their proceeds, and understanding those costs ahead of time can help you plan for your next move.

So, what closing costs should you expect when selling a home? Here’s a breakdown.

1. Real Estate Agent Compensation

For many sellers, real estate agent compensation is one of the larger expenses associated with selling a home.

There is no standard or required commission rate. Compensation is negotiable and will be outlined in your listing agreement. Depending on the transaction, sellers may also agree to certain concessions or costs related to the buyer’s representation.

Your real estate agent can explain the structure and anticipated costs before your home goes on the market.

2. Attorney Fees

In Illinois, real estate attorneys commonly play an important role in the closing process.

Your attorney can review contracts and documents, address legal issues that arise during the transaction, and help facilitate the closing. Attorney fees vary depending on the attorney and complexity of the sale.

3. Title and Closing-Related Costs

Sellers may be responsible for certain title-related expenses, which can include items such as title insurance and other fees associated with transferring ownership.

These costs vary depending on the property, sale price, and transaction.

4. Transfer Taxes

Selling a home may also involve state, county, and local transfer taxes.

For Chicago sellers in particular, it’s important to account for applicable transfer taxes when estimating your net proceeds. The exact amount will depend on the property and sale price.

5. Property Taxes and Other Prorations

Property taxes are another important consideration.

Because Illinois property taxes are paid in arrears, sellers and buyers typically account for taxes through a credit or proration at closing. Depending on the property, there may also be prorated HOA assessments or other expenses.

6. Mortgage Payoff

If you still have a mortgage on the property, the remaining loan balance will be paid from your proceeds at closing.

Your lender will provide a payoff amount that may include the outstanding principal along with applicable interest or other charges through the payoff date.

While this isn’t technically a “closing cost” in the same way as a fee or tax, it’s an important part of determining how much money you’ll ultimately receive from the sale.

7. Repairs, Credits or Seller Concessions

Every transaction is different.

Depending on the terms of your contract, you may agree to provide the buyer with a credit or concession or address certain issues discovered during the inspection process.

These expenses aren’t guaranteed, but they’re worth considering when planning your potential proceeds.

So, How Much Will You Actually Walk Away With?

That’s the number sellers really want to know.

Your net proceeds are essentially what’s left after your mortgage payoff and applicable selling expenses are deducted from the proceeds of the sale.

And because every property and transaction is different, there’s no single percentage that accurately represents what every seller will pay.

That’s why it’s helpful to estimate your potential net proceeds before listing your home—not after you’ve accepted an offer.

Planning to Sell? Start With the Numbers.

At IRPINO Real Estate, we’ll help you understand your home’s potential market value and the expenses you may encounter so you can have a clearer picture of what a sale could mean financially.

Whether you’re considering selling now or simply planning ahead, knowing the numbers can help you make a more informed decision about your next move.

Thinking about selling your home in Chicago or the surrounding suburbs? Contact IRPINO Real Estate for a complimentary Home Valuation and personalized conversation about your selling options.