When you are selling your home (or any type of property for that matter) sellers are always curious what their closing costs are going to run. Sometimes the costs can make the difference as to whether you get money back or have to bring money to the closing. A lot of people do not realize how expensive it can be to sell their home. Below is a breakdown of the typical closing costs you will incur when you are selling your home:
- Realtor fees
This will usually be your biggest fee. Typical realtor fees range from 4-6% of the purchase price. Even if you are doing a for sale by owner, if the buyer of your property uses a realtor you will be expected to pay their realtor (2 ½ – 3%).
- Attorney fees
Although some people take the risk when buying a property and don’t use an attorney, when you are selling real estate, it is almost impossible in the state of Illinois not to hire an attorney. The attorney will handle all negotiations and documentation you are contractually required to provide. Some title companies will not deal with you without attorney representation.
- Title Company Fees
It doesn’t matter what title company you use; you will incur fees. For the most part, at the end of the transaction, most title company’s fees will be competitive. The biggest factor on the title company fees is the purchase or sale price. Fees range from $2500-$7500.
For most sales, you will have to provide a survey of the property. Generally, if you have owned your house for more than six years, you will have to pay for a new survey. However, if you have a survey that is less than 6 years old, generally, we can ask the purchaser if they will accept it along with an affidavit from you that you haven’t made any improvements in order to save you that fee.
- Well and Septic
If your home has a well and septic system, you do have to pay for it to be tested and serviced. It must be in good working order.
- Association Paid Assessment Letter
If your home is in an association you will have to get a letter from them stating that all association dues are current. Depending on the size of the association, if they use an outside company to handle providing the documentation, the cost can range from $200 – $500.
Real Estate Taxes – You will have to give a credit to the buyer for any unpaid property taxes through the date of closing. For example, if the second installment from the year before has not yet been paid, you have to give the buyer a credit for that amount so that the buyer can pay the bill when it comes due. Additionally, the current year’s taxes get prorated through the day of closing and a credit is provided to the buyer for that amount as well.
- State and County Tax – Every real estate transaction is reported and you do have to pay state and county tax. That is paid at closing as well.