When I sell my home, what kind of costs are there?
Most
real estate attorneys consider Realtor commissions, taxes, title
related fees, etc. all to be "closing costs." Other real estate
attorneys may only call title-related fees "closing costs." When I talk
to a client, I consider all fees to be closing costs - including
Realtor commissions.
For Sellers, the largest closing cost tends to be the Realtor commission.
This commission is typically between 4 percent and 7 percent of the sale
price. This can be somewhat negotiable between you and your Realtor
and is included on the listing agreement you sign with them.
The
next largest cost is real estate property taxes. In the Chicago area,
we pay property taxes in arrears — which means that this year, we are
paying 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. Typically the property tax credit is based on 105-110% of the previous year taxes but this is negotiable.
Sellers
must also pay transfer taxes at the closing. In the Chicago area,
Sellers pay one dollar ($1.00) per thousand to the State, 50 cents (.50)
per thousand to the County, and often a transfer tax to the City or
suburb they live in. In Chicago for example, the Seller pays three dollars ($3.00)
per thousand to the City of Chicago. So if you are selling in Chicago, you will pay a grand total of $4.50 per thousand in transfer taxes.
There
are also title related fees. In Illinois, the Seller pays for the
title insurance. The title insurance policy basically insures the Buyer that they are getting "clean and marketable" title from the Seller. Title
insurance typically starts around $1750.00 and goes up from there depending on
the purchase price. There are also misc. other title related and state fees charged to the
Seller at closing that typically end up
being around $500.00.
Finally,
there may be some fees related to the association/management company
(if applicable) or the cost of a survey (for single family homes).
If you are looking for a more accurate figure, simply call our office and we would be happy to go over the individual costs for your property.
It
is important to have an experienced, knowledgeable attorney working on
your behalf so that you do not pay any unnecessary fees. Bradford Miller Law PC has closed thousands of transactions and they are very
responsive to their clients. Bradford Miller Law PC is a member of the
Better Business Bureau and they consistently receive excellent reviews on Yelp
and other sites.
Feel free to call our office for a free consultation - 855-897-9410
