Closing Costs Explained
Understand where your money goes at the closing table in Illinois.
One of the biggest questions sellers have is: "How much will I walk away with?" While you save thousands on commissions with MLStown, there are standard state and local fees that every seller in Illinois must pay.
1. Standard Closing Fees
Title Insurance
You must provide the buyer with a "clear title." This insurance policy protects them from past claims on the property. Fees vary based on sale price and tend to be higher than other states. Seller's attorneys in Illinois typically act as title agents and order title.
Transfer Taxes
State & County: Every seller pays $1.00 per $1,000 of the sale price to the State of Illinois. Each county has their own transfer taxes and most cities and villages have their own taxes as well.
2. The Real Estate Attorney
In the Chicago area, attorneys are essential to the transaction. Unlike some states where title companies do the paperwork, your attorney prepares the closing documents (Deed, Bill of Sale, Affidavit of Title).
Typical Cost: $500 – $800 flat fee.
They also review the contract, negotiate inspection items, and order the title work. We can recommend flat-fee friendly attorneys if you need one.
3. The "Tax Credit" Surprise
This is the most confusing part for new Illinois sellers. In Illinois, property taxes are paid in arrears (e.g., in 2025, we are paying the 2024 tax bill).
Because you lived in the home for part of the year before the bill was issued, you must give the buyer a credit at closing to pay that future bill.
The Calculation: Most contracts require a credit of 105% to 110% of the last known tax bill, prorated to the day of closing.
4. Village Inspections & Stamps
Depending on where you live, your local municipality may have specific requirements before you can sell.
- Chicago: Sellers must pay for the City Transfer Tax stamps. (Note: The buyer pays the "CTA" portion, the seller pays the City portion). You also need a Water Certification and Zoning Certification.
- Suburbs (Berwyn, Cicero, Forest Park etc.): Many suburbs require a Village Inspection (Compliance Inspection) before closing. The village inspector checks for code violations (smoke detectors, handrails, etc.). These must be fixed, or money escrowed, before they issue the Transfer Stamp.
County Transfer Tax Rates
In addition to the Illinois State Tax ($1.00 per $1,000), you must pay a county transfer tax. Rates vary by location. These are paid by the Seller at closing.
| County | Rate (per $1,000) | Cost on $400k Sale |
|---|---|---|
| Cook County | $0.50 / $1k | $200 |
| Lake County | $0.50 / $1k | $200 |
| DuPage County Lowest Rate | $0.25 / $1k | $100 |
| Will County | $0.50 / $1k | $200 |
| Kane County | $0.50 / $1k | $200 |
| McHenry County | $0.50 / $1k | $200 |
| Kendall County | $0.50 / $1k | $200 |
*Note: Some municipalities (cities) charge their own additional transfer tax (e.g., Chicago, Evanston, Oak Park).
Warning: The "Strict" Suburbs
While many towns just require a final water reading, some have rigorous "Point of Sale" inspections. If you live in these towns, you cannot close until the village inspects your home and you fix any code violations.
- 21-Day Rule: You MUST apply for inspection at least 21 days before closing.
- Strict Codes: They check everything from concrete cracks to electrical outlets.
- Permits: If you did work without permits they have been known to make you rip it out.
- Escrow: If repairs aren't done by closing, the buyer must post a cash bond (Escrow) with the village.
Don't see your town? Google "[Your City Name] home sale inspection requirements" or call your Village Hall immediately. Do not wait until closing week!
The "Flat Fee" Advantage
Even with these standard costs, your savings with MLStown are massive because you eliminate the biggest line item: The Listing Commission.
| Expense (On $400k Sale) | Traditional 6% Agent | MLStown Flat Fee |
|---|---|---|
| Title & Transfer Taxes | ~$3,000 | ~$3,000 |
| Attorney Fee | ~$600 | ~$600 |
| Tax Proration (Credit) | ~$4,000 | ~$4,000 |
| Buyer's Agent Commission (2.5%) | $10,000 | $10,000 |
| Listing Agent Commission | $10,000 (2.5%) | $295 (Flat Fee) |
| TOTAL COST TO SELL | $27,600 | $17,895 |
*Figures are estimates for educational purposes.