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How Much are Closing Costs in Illinois?

How Much are Closing Costs in Illinois

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What is Closing Cost?

When buying or selling a home in Illinois, it’s crucial to understand how much closing costs may set you back. Closing costs are the fees associated with finalizing a real estate transaction and can include various expenses, such as loan origination fees, title insurance, and more. In this section, we’ll explore who pays what in closing costs and provide you with valuable data to help you make informed decisions.

Who Pays Closing Costs in Illinois?

In Illinois, both the buyer and the seller are responsible for covering different parts of the closing costs. Generally, the seller covers fees related to the property’s transfer, while the buyer pays for costs associated with obtaining a mortgage. However, it’s essential to note that the specific amounts and types of fees can vary depending on the transaction and location.

How Much are Closing Costs for Sellers in Illinois?

Sellers in Illinois can expect to pay several types of closing costs, including:

REALTOR Fee: The average real estate commission in Illinois ranges between 5% and 6% of the home’s sale price. For a $250,000 home, this would amount to $12,500 to $15,000.

Recording Fee: Sellers in Illinois are responsible for paying the recording fee, which varies by county but generally ranges from $50 to $150.

Escrow Fee: Escrow fees in Illinois usually range from $500 to $1,000 and cover the cost of managing the escrow account that holds funds until the transaction is complete.

Home Inspection Fee: While not always required, a seller may choose to pay for a pre-sale home inspection. This typically costs between $300 and $500.

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How Much are Closing Costs for Buyers in Illinois?

Buyers in Illinois can expect to pay several types of closing costs, including:

Homeowner Fees: These include upfront payments for property taxes and homeowner’s insurance, which can range from $2,000 to $6,000, depending on the property’s value and location.

Lender Fees: Lender fees in Illinois typically range from 0.5% to 1% of the loan amount. For a $250,000 mortgage, this would amount to $1,250 to $2,500.

Third Party Fees: These fees cover services provided by third parties, such as title companies and appraisers. Title fees can range from $1,000 to $2,000, while appraisal fees generally cost between $300 and $600.

By understanding the various costs associated with closing a real estate transaction in Illinois, both buyers and sellers can be better prepared for the process and make well-informed decisions throughout the transaction.

How Much Are Closing Costs in Illinois?

If you’re wondering “How Much are Closing Costs in Illinois,” you’re not alone. Understanding the expenses associated with closing costs is vital for a successful home-buying experience. According to a 2021 report by ClosingCorp, a leading research provider in the U.S. real estate industry, the average closing costs in Illinois are $1,955 for a home priced at $208,429, constituting 0.94% of the property’s value. In comparison, the national average is $6,087, making Illinois the 11th state with the lowest closing costs.

However, it’s important for Illinois homebuyers to be prepared to spend more than $2,000 on closing costs. ClosingCorp’s data doesn’t include common expenses, such as loan origination fees and private mortgage insurance (PMI). Loan origination fees, necessary for setting up your mortgage, can amount to 1% of your purchase price, while PMI rates can be as high as 2.25% of your home loan.

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Furthermore, the report doesn’t account for state-specific costs, like land survey fees, which may be required in certain parts of Illinois. The state has also experienced a significant increase in home values in recent years. As of July 2021, the average home price in Illinois surged by 12.6% year-over-year, from $233,500 to $263,000, according to market data from Illinois Realtors.

 

Robbi Cahya Yudha

As an experienced professional in the mortgage loan and property market, Help individuals and families achieve their homeownership dreams.  My mission is to simplify your real estate journey and secure the best possible outcomes in this ever-changing market.