Thinking about selling your home in Long Grove, Illinois? While you may be excited to cash in on your investment, it’s crucial to factor in seller closing costs before you start calculating your profit. Here’s a breakdown of common fees and how they can affect your bottom line:
What Are Closing Costs?
Closing costs are fees associated with completing a real estate transaction. They typically amount to 2-5% of the home’s sale price and are deducted from the final proceeds. These costs vary by location, but they generally cover taxes, title fees, attorney fees, and other administrative charges. It’s important to note that realtor commissions are not included in closing costs.
Common Closing Costs for Sellers
- Transfer Tax: A one-time tax imposed when the title of the property changes hands. In Long Grove, local governments may apply a transfer tax, based on the sale price of the home.
- Title Fees: As the seller, you’ll likely pay for the owner’s title insurance to protect the buyer against title issues. This fee can range from a few hundred to $1,500.
- Attorney Fees: Illinois requires an attorney for real estate transactions. Their fees range from $150-$350 per hour or may be a flat fee, depending on the complexity of your sale.
- Escrow Fees: These fees cover the escrow agent’s services in holding funds and managing the closing process. Costs can vary, ranging from $300 to $700.
- Prorated Property Taxes: You’ll need to pay property taxes up to the closing date. Make sure you’re caught up to avoid any surprises.
- Mortgage Payoff: If you have an outstanding mortgage, it must be paid off before the sale closes. Ask your lender for an estimate of this payoff amount.
- HOA Fees: If your property is in a Long Grove HOA, you’ll need to pay fees up-to-date and may need to cover a transfer fee.
Seller Concessions
In certain situations, sellers may offer to pay for the buyer’s closing costs, especially in a buyer’s market. This is called seller concessions and may include paying for repairs or other necessary fees. Keep in mind that there are limits based on the buyer’s loan type.
Final Thoughts
Closing costs can significantly affect your proceeds, so it’s essential to plan ahead. At Helen Oliveri Real Estate, we’re here to guide you through the selling process and provide a detailed estimate of your closing costs. We’ll help you stay informed and prepared to make the best decisions for your sale in Long Grove and surrounding areas.
Reach out today for expert advice and to get started on selling your Long Grove, IL home!
