Friday, April 16, 2010

Closing Costs for Sellers

Posted by Bradford Miller Law, P.C. - Experienced in Real Estate and Landlord Tenant Law

What kind of closing costs can I expect when I am selling my home?

First, let me clarify that I consider realtor commissions, taxes, title related fees, etc all to be "closing costs." Others may only call title-related fees "closing costs."

For Sellers, the largest closing cost tends to be the Realtor commission. This commission is typically between 4 and 6% of the sale price. The next largest cost is real estate property taxes. In Cook County, we pay property taxes in arrears - which means that in 2010, we are paying the 2009 property taxes. So when you sell your home, you must give a property tax credit to the Buyer for the time you spent in your home in the current year. This property tax credit can be negotiated and a formula is used to calculate the actual amount. The remaining costs include title related fees, city, county and state taxes.

Overall, Sellers can typically expect to pay around 8% of the sales price in total closing costs. This includes the Realtor commissions, taxes and title related fees. For example, on a $200,000 home, the Seller can expect to pay around $16,000 in total closing costs. Again, each transaction is different, and if no Realtors are involved, the closing costs will be much lower - because there will be no commissions to pay.

If you are trying to sell your home, contact our office immediately so we can begin working on the documents.  Our office phone number is 312-238-9298.

Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.