Home Seller Closing Costs - Schaumburg Homes - Lyn Sims (847)230-7324 RE/MAX Suburban

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Real Estate Agent with RE/MAX Suburban
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Home Seller Closing Costs


home selling advice,closing costs,There are more closing costs in the average real estate transaction than just the Realtors© commission!  Here are a few examples of standard closing costs (updated 6/13/19) in our Northwest Suburban Illinois area ~


Survey - Sellers in Illinois are responsible for giving the buyer a plat of survey of the property. The price for a plat of survey can range from $500 to $800.  In our area it cannot be older than 6 months.  Usually with townhomes or duplexes where you own the land this would apply also.

Recorded release of mortgage - Verifies that your mortgage has been completely paid off by the sale proceeds, usually $75 to $150.

Courier fee to pay off loan - Typically runs $50 to $100 or more.  This could be just a FedX fee also.

Wire Transfer Fees - The cost for transfering funds to or from the title company is $50. Certified Checks are no longer written or accepted.

Title insurance - The seller must provide a policy of title insurance for the buyer. The cost of the policy depends on the sales price of the home and its cost can vary. Some title companies have added additional charges to the base title charge (of course it's a la carte). These fees go by the name of 'update fees', 'policy issuance fee' and the like. Some fees are as low as $25 and others up to $150.   (Examples of title costs would be $200,000 is $1700 - $300,000 is $1920 - $400,000 is $2120 - $500,000 is $2345)

Local city, town or village property transfer tax; county transfer tax, state transfer tax  - Hey you say this is a rip off!  Well sometime YOU voted for it.  You can also call this the exit tax from your village and the charges vary from municipality to municipality. In Illinois, the seller picks up the county tax ($.50 per $1,000 of sales price) and the state tax ($1 per $1,000 of sales price).

In some local municipalities, the buyer also pays for a local Transfer Tax or Transfer Tax Stamps. In general, property transfer taxes can range from nothing to $10 per $1,000 of the sales price or more, or you may be assessed a flat fee.  Examples for our area below:

Bartlett - $3 per $1,000 of sales price.  Purchasing and staying withing the village is waived.
Elgin – nothing.  There’s nothing better than zero and unfortunately it's rare.home seller closing costs,
Elk Grove Village - $3 per $1,000 of sales price.
Hanover Park - $1.50 per $500 of sales price.  You always have to get a jokester at one of the villages!  Jeez they wanna feel special.
Hoffman Estates - $3 per $1,000 of sales price.
Schaumburg - $1 per $1,000 of sales price.  If you are also moving from one village location to another this fee is waived and costs $10.00.  If you are a senior citizen the cost is $10.00.

Credit to the buyer of unpaid real estate taxes -  Depending on how and when property taxes are billed in your county, it’s possible that you will have to credit the buyer 105% to 110% for real estate taxes that were for the time period you owned the home but will be billed after the closing date of the sale of your home.

Attorney’s fees - If you choose to use an attorney (which you should by the way), you’ll either pay a flat fee starting around $375 on the average.  Your attorney will prepare the HUD-1 which is the closing document that lists all closing costs/fees for both the buyer and the seller.  All or any of these fees will be added to your HUD-1 Statement for closing.

Broker’s commission - If you’re using a brokerage firm, expect to pay anywhere from 5 to 7 percent of the sales price.  Include any sales incentives that are popular now to attract more buyers to your home such as points paid for the buyer, selling bonus.

FHA fees and costs - All FHA fees used to be the responsibility of the seller, but they are now negotiable. But if the buyer can’t pay the fees, and the seller refuses to kick in a few bucks, the lender may not fund the loan. There can be points based on the mortgage amount in which 1% is equal to 1 point of the loan amount.  Some areas also require a termite inspection which would be $150 to determine there is no termite infestation of your home.

Condo move-out fee - A building charge that can range from nothing to more than $500. Some cooperative buildings can charge a percentage of the sales price to permit the sale of the coop. In some instances these fees can be as much as three percent of the sales price.  In most instances it is a refundable fee that prevents damage to the common elements by either yourself or movers that are moving your belongings.

Association transfer fees - Often required for condominium and townhouse sellers. Some of the fees are for processing the sales papers, move-out deposits, preparation of closing documents and even inspection fees.  Fees range from $200.00 to $500.00 or more depending on your association.

Paid utility bills - In many areas, local municipalities will not let you close until you have proved that you are current on your water bill.  They will not issue your required transfer tax stamps without your paid water bill.

seller closing costs,Certificate of compliance with building and zoning codes - Your local municipality may charge for inspecting your home prior to the sale to insure that it meets up to date code requirements. Such inspections can cost a nominal amount or run more than several hundred dollars plus the cost of fixing any items that are non-compliant. In addition, some municipalities charge a fee to verify the number of dwelling units permitted at a home being sold. The cost of such certificate can be nominal, but it may be a hassle to obtain the certificate.

Home Warranty - Policy which guarantees to the buyer that all of the mechanical and electrical appliances are working on the day of closing and are guaranteed to work for the first year of ownership.  The cost for a warranty starts around $450 and can increase as additional option items are added.

Association reserves - In some areas, the reserves held by condominium or homeowner association are credited to the seller on the basis of the seller’s percentage of ownership in the association. Fortunately, for the seller, this is one of the few instances of money coming back to the seller rather than a payment by the seller.

Special assessments to associations - In many associations, if a special assessment has been levied (even if it can be paid over many years) the association will require that the assessment be paid in full at the closing.

Other credits to the buyer - In some cases, sellers give credits to the buyer for things that don’t work, or don’t look nice, in their home. For example, if the buyer’s inspector finds something wrong in the house, you may negotiate a credit to the buyer that will be paid at the closing. The cost of this will vary.

Unpaid mortgage/home equity loan/line of credit - At closing, the seller must pay off any mortgage andseller closing costs, home equity lines of credit that are relating to the home being sold. The seller must remember that the prior months’ statement for the mortgage will not include the interest that is owed on the loan from the last payment date. Almost all mortgages are paid in arrears: you pay last month’s interest in the current month. Therefore, if you made your most recent mortgage payments, you will still owe interest for the current month until the loan is paid off on the closing day.

Short Sale or ‘Upside Down’ Loans - Owing more on the mortgage than the house is worth. Many sellers each year will find themselves in this position. If you do manage to find a buyer, and the amount being paid for the home will not entirely pay off your mortgage, home equity loan or line of credit, you’ll have to come to the table with cash in hand. If the lender 'forgives' your loan, the IRS may see that as income to you, and you’ll be taxed on the phantom income as if you actually earned it. Talk to your tax preparer for more details.

It’s important to keep a list of your closing costs, as well as a copy of all your purchase and sales documents, so that you can accurately figure out your home’s cost basis.


Source: Chicago Title & Trust June 2019 Fees

Updated 6/13/2019

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lyn sims remax suburban  Lyn Sims    Schaumburg IL Area    Northwest Chicago Suburbs  ●  (847)230-7324
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Ambassador
1,883,818
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Lyn, this is a great review of home seller costs. Where we have seen MANY upside down loans in our area over the last 20 years is homes going down in value over time and people refinancing them two or three times putting the closing costs back into the principal.

Oct 03, 2008 02:31 PM #2
Rainmaker
1,573,824
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Gary, people just think that it is the real estate commission that takes the biggest chunk, but actually there are alot more costs that have nothing to do with Realtors on every closing.  Just wanted to point that out to sellers and give full disclosure and advice.  Thanks for your time and stopping by. It is ashame how many owners have used their home as an ATM machine and then wonder where their equity went.

Oct 04, 2008 05:07 AM #3
Rainmaker
340,210
Judy Greenberg
Coldwell Banker Long Grove - Buffalo Grove, IL
Coldwell Banker - Buffalo Grove - Long Grove Homes

Lyn, great summary of expenses for a client.  You covered the entire spectrum!  If you are ever up North, lets have breakfast.

Oct 05, 2008 03:36 AM #4
Rainmaker
1,573,824
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Judy, I just might do that.

Oct 08, 2008 09:51 AM #5
Anonymous
Real Estate Lawyer

Losing your home or property can be one of the most devistating experiences a person can have happen to them in their life, let us fight for your rights to protect what belongs to you! http://www.azrealestatelawfirm.com 877-990-0002

Oct 20, 2008 04:31 AM #6
Anonymous
Real Estate Lawyer

Losing your home or property can be one of the most devistating experiences a person can have happen to them in their life, let us fight for your rights to protect what belongs to you! http://www.azrealestatelawfirm.com 877-990-0002

Oct 20, 2008 04:34 AM #7
Anonymous
Real Estate Lawyer

Losing your home or property can be one of the most devistating experiences a person can have happen to them in their life, let us fight for your rights to protect what belongs to you! http://www.azrealestatelawfirm.com 877-990-0002

Oct 20, 2008 04:36 AM #8
Ambassador
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Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Very comprehensive post on seller closing costs!  It definitely is more than just commission - it's about net (swoosh!)

Mar 06, 2011 05:12 AM #9
Rainmaker
3,983,819
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have had a lot of people think that the commision covered everything.   When I give them a list of costs...a few have said "Screw it, I staying here!"

Mar 06, 2011 07:29 AM #10
Ambassador
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Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Dear Lyn,

Thanks for running this again.  It is a great list of items to have when going over the final costs with a Buyer.  

I always insist on Buyer including OWNER's TITLE insurance - too risky if something goes wrong.  Not required in Georgia but even if the people have "only" put down 3.5%, it is a lot of money for them!

Have a happy day -
Lynn

Mar 06, 2011 08:24 AM #11
Ambassador
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Cindy Marchant
Keller Williams Indy NE 317-290-7775 www.marchantteam.com - Carmel, IN
"Cindy in Indy" , Realtor, Fishers Real Estate

That is a very comprehensive list Lyn!  Only real difference here is in the survey; it is typically a buyer expense.  I thought Indiana was the only state that paid property taxes in arrears....I tell my sellers if they escrow that the Lender will release those funds once they receive the pay off.

It was good to rerun this...great post to point sellers too when they are thinking about selling.

Cindy in Indy

Mar 07, 2011 12:40 AM #12
Rainmaker
1,573,824
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Cindy:  Just doing an update on this.

Bill: There are more costs than sellers realize.

Mar 07, 2011 04:11 AM #13
Rainmaker
845,605
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

Nice break down of all the costs. bookmarked ~ thanks

Jan 09, 2012 09:31 PM #14
Rainmaker
1,246,270
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Lyn:  You post proves beyond a shadow of a doubt exactly WHY it's so important for buyers and sellers alike to work with true real estate professionals.  There is so much to know and understand in today's real estate transaction.  Miss or not understand even a small portion of your list (and more) and you could be talking real financial consequences.  Education and choice of professional to work with is absolutely vital these days ...  great job!

Gene

Jun 22, 2012 12:58 PM #15
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