I often get asked "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 5% 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 2012, we paid the 2011 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 of 5%, 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
since there will be no commissions to pay.
Whether you
live in Chicago or the suburbs, if you are trying to sell your home
contact our office for a free consultation. Our office phone number is 312-238-9298.
Posted by Bradford Miller Law, P.C.
134 N. LaSalle, Suite 1040
Chicago, IL 60602
312-238-9298
http://www.bradfordmillerlaw.com
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