Illinois Seller Closing Costs in 2021: How Much Will You Pay?

Jamie Ayers


Jamie Ayers

May 12th, 2021
Updated May 12th, 2021


At the end of your Illinois home sale, you’ll need to pay several expenses referred to as closing costs. Here, we’ll go over each of them and help you get an idea of what you’ll need to budget for, and how closing costs can affect your profits.

How Much Are Closing Costs for Sellers in Illinois?

When you come to the end of your home sale, you enter the phase referred to as “closing.” During this part of the real estate transaction, a number of expenses are incurred, which are broadly referred to as “closing costs.”

In Illinois, you can expect to pay between 2-3% of your home's sales price in closing costs. These costs are in addition to the traditional 6% realtor commission fee sellers pay, bringing the total costs due on closing day to 8-9%.

Selling a home can take a toll on your wallet, so it's important to keep an eye out for ways to save wherever you can. If you want to keep your selling costs down, Clever Real Estate can help.

Clever partners with top agents across Illinois who offer full service, but charge up to 50% less than traditional listing agents.

> Get in touch with Clever to start interviewing agents in your area.

Until then, here's what you need to know about closing costs in Illinois.

What are closing costs?

Closing is a phase of the real estate transaction process during which the final paperwork is signed, money is paid to the seller, and the buyer walks away with the keys to the house.

During this part of the transaction, the buyer and seller both incur a number of miscellaneous expenses, which are referred to as closing costs.

These expenses include:

  • Title searches
  • Title insurance
  • Home inspections
  • Appraisals
  • Surveys
  • Credit reports
  • Loan payoff fees
  • Settlement or attorney fees
  • Transfer tax
  • Recording fees
  • Mortgage payoff or prepayment penalties
  • Outstanding balances

In Illinois, buyers and sellers each pay approximately 2-3% of the home's final sales price in closing costs. Generally, closing costs for sellers revolve around transferring ownership, while buyer's fees are centered on taking out a mortgage.

How much are closing costs in Illinois?

Closing costs in Illinois typically add up to 4-6% of the home's final sales price with the total being roughly split down the middle by buyers and sellers.

Luckily, as a seller, you don't have to pay for your closing costs out of your own pocket in most cases. Instead, you'll simply deduct any expenses from your home's profits. Buyers, on the other hand, will need to pay the fees on their own.

How to Calculate Your Closing Costs in Illinois

To get a ballpark estimate of your closing costs, let's take a look at some typical home prices in Illinois.

According to Zillow, the September 2019 median sales price of homes in Illinois was $195,600. Considering closing costs typically come to around 2-3%, you can budget for around $3,912-$5,868.

But remember, this does not include real estate agent commissions. While you can negotiate a lower fee with your agent, the average total commission rate in Illinois is 6%.

What's included in Illinois closing costs?

While buyers and sellers are typically responsible for their own set of closing costs, who pays for what is negotiable. A buyer might present an offer that asks you to cover some of their closing costs. To ensure you understand what you might be agreeing to pay, let's take a look at all closing costs in Illinois.

Title Search: $300-$600

Title searches are conducted to check for any liens on the property and ensure the seller has the rights to transfer it to the buyer. It generally costs $300-$600, according to

Title Insurance: $1,000

Title insurance protects buyers and lenders against issues with the title. While most insurance policies cover the insured going forward, title insurance actually goes backward, protecting the insured against previously unknown title issues that could surface after the buyer has already purchased the home.

Title insurance typically costs around $1,000.

Home Inspection: $300-$500

A home inspection is conducted to check for any issues with the house, its foundation, or its systems. A typical inspection will run you $300-$500, according to Nerdwallet.

Appraisal: $300-$400

An appraisal is a professional valuation of the home. They are conducted to ensure that the home will serve as sufficient collateral for the buyer's mortgage.

Appraisals generally cost $300-$400, according to

Survey: $500-$700

Surveys confirm a house's property lines. Plat surveys are required in Illinois and typically cost $345-$676, according to HomeAdvisor.

Credit Report: $20-$50

Lenders run credit reports after receiving a buyer's mortgage application to check for creditworthiness.

Credit reports generally cost $20-$50.

Loan Payoff Costs: 0.5-1.5% of the Closing Price

Loan payoff costs account for loan origination fees, assumption fees, and prepaid interest fees.

While it varies depending on the lender, loan costs are typically 0.5-1.5% of the final sales price, according to Money Crashers.

Mortgage Payoff/Prepayment Fees: Variable

Some lenders require borrowers to pay a fee if they pay off their mortgage before the entire term is complete. These fees vary depending on the lender, so check with yours to see if you're subject to any penalties.

Outstanding Amounts Owed on the Property: Variable

Before selling your home, you're required to pay off any outstanding balances and prorated property taxes. These will vary based on your home and its location.

Transfer Taxes: 0.1% (State), County Rates Vary

Sellers in Illinois are required to pay a 0.1% state transfer tax. They may also be subject to an additional county transfer tax, which varies from county to county.

> Learn more about Illinois transfer tax.

Recording Fees: Variable

Buyers in Illinois need to pay the cost of filing the deed with the local municipal courts. These costs are referred to as recording fees. They vary based on the locality.

Settlement or Attorney Fee: variable

Attorneys are required for all real estate transactions in Illinois. Typical fees are between $500-$700, according to Chicago Real Estate Dude Realty Group.

Other Home Selling Costs in Illinois

Before listing a house, you'll need to budget for the cost of improvements that will make to your home more appealing to buyers. Also, expect the inspection to find necessary repairs you'll either need to pay for or credit to the buyer.

Additionally, you'll also need to pay realtors' commission fees. Typically, sellers pay both their own agent's and the buyer's agent's commission, which are 3% each, or 6% in total. This means a homeowner who sells for the Illinois median price of $196,500, would pay $11,790 in commissions.

> Learn more about how much it costs to sell a house in Illinois.

Save up to 50% on agent commissions.

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Who pays closing costs in Illinois?

Buyers and sellers both pay closing costs in Illinois. Sellers' expenses typically revolve around transferring the ownership of the house and buyers' costs are normally related to taking out a mortgage.

Typical Seller Closing Costs

Sellers closing costs include:

  • Transfer tax
  • Title searches
  • Title insurance (for the buyer)
  • Loan payoff fees
  • Mortgage prepayment penalties
  • Outstanding balances
  • Attorney or settlement fees

Typical Buyer Closing Costs

For buyers, typical costs include:

  • Title insurance (for the lender)
  • Home inspections
  • Appraisals
  • Surveys
  • Credit reports
  • Recording fees
  • Settlement or attorney fees
  • Mortgage origination fees

Should you pay the buyer's closing costs?

Most of the time, it is unnecessary to pay a buyer's closing costs. Sellers will typically only need to do so in very cold markets where there is a strong bias towards buyers. In these circumstances, it can help a seller close on their home if they offer to pay some of the buyer's closing costs.

Before agreeing to this, speak with your real estate agent about the pros and cons of your situation.

Key Takeaways for Illinois Home Sellers

Closing costs for sellers in Illinois typically work out to around 2-3% of the home's final sales price. For sellers, fees center around transferring ownership and paying off existing balances.

Closing costs are paid in addition to the average 6% commission fee, bringing the total due on closing day to 8-9% of the home's closing price.

If you want to save money on your home sale, Clever can help. When selling with a Clever Partner Agent, you can save up to 50% on commission fees. Instead of paying 3% to a listing agent, Clever Partner Agents charge a flat fee of $3,000 or 1% if your home sells for more than $350,000.

Get in touch to learn how you can save thousands on your home sale during a free, no-obligation consultation.

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