Most real estate attorneys 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 percent and 6 percent 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 this year, we are paying the last year's property taxes. So when you sell your home, you must give a property tax credit to the buyer for the taxes not yet due while you were still living in the home. 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, in a typical transaction, sellers can expect to pay around 8 percent of the sale price in total closing costs. This includes a 5 percent Realtor commission, 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.
Another way to look at it would be to add 3 percent to the Realtor commission. The Realtor commission will be stated on the listing agreement that you signed when you put your home up for sale.
Whether you live in Chicago, Naperville, Schaumburg, Orland Park or another suburb, Bradford Miller Law, P.C., can help you with your real estate transaction. To schedule a free 15-minute initial consultation with an experienced Chicago real estate lawyer, contact our office online at bradfordmillerlaw.com or call us at 1-312-238-9298. Meetings can be set up for weekdays, between 8:30 a.m. and 5 p.m. We charge reasonable fees for all services.
At bradfordmillerlaw.com you will find additional information regarding real estate transactions as a seller along with information about our firm.
Posted by Bradford Miller Law, P.C.
Practicing in Real Estate Law, Landlord Tenant Law, and Estate Planning
134 N. LaSalle, Suite 1040
Chicago, IL 60602
Offering free legal representation to homeowners seeking a short sale
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