Question 1

What are the transfer taxes when selling a home in Chicago?

Accepted Answer

Three layers apply. Illinois charges $0.50 per $500 of sale price, Cook County charges $0.25 per $500, and the City of Chicago charges $10.50 per $500 split as a $3.00 seller share and a $7.50 buyer share. The buyer share is negotiable and is sometimes shifted to the seller in the contract. Rates vary by municipality; confirm current rates before closing.

Question 2

Why do I owe the buyer money for property taxes at closing?

Accepted Answer

Illinois property taxes are billed one year in arrears, so the bill that arrives after closing covers a period when you still owned the home. At closing you credit the buyer for that unbilled period. On a June closing with a $6,000 annual bill, the credit is commonly several thousand dollars. Cook County closings often apply a 105 to 110 percent proration factor, which increases the credit.

Question 3

How much does it cost to sell a house in Illinois?

Accepted Answer

Total cost of sale commonly runs 8 to 11 percent of the sale price once commission, transfer taxes, title and attorney fees, concessions, repair credits, and the tax proration are counted. The proration and concessions are the two lines sellers most often leave out of their own math.

Question 4

Is a cash offer worth taking if it is below market?

Accepted Answer

Compare net to net, not price to price. A cash as-is purchase typically carries no commission, no concessions, no repair credits, and closes in weeks instead of months, which also eliminates carrying cost. Whether the discount is worth it depends on the size of the gap and on how much certainty and speed are worth to you.

Seller Net Proceeds

Sale & Payoffs

Brokerage & Concessions

Transfer Taxes

Closing Costs & Prorations

Your Net

Where it goes

Full Settlement Estimate Full Report

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