Buying or selling a home in Chicago or the suburbs comes with costs that you may not be aware of. Be smart and avoid unpleasant surprises. Read on to know what fees and expenses to expect as a buyer or a seller.
Common home buying costs
In addition to the down payment, these are the most significant out-of-pocket expenses you will want to prepare for:
- Appraisal fee
- Home inspection
- Closing costs
Before approving your mortgage, the lender will hire a professional appraiser to conduct an independent appraisal of the property. The value assessed by the appraiser will be the basis in determining the maximum loan amount the lender can offer you. The appraisal fee is passed on to you as the borrower. In metro Chicago, the average appraisal fee is around $350 to $450.
No matter how tight the competition, waiving home inspections is never a good idea. An inspection can uncover major defects in the property that may cost you a lot of money in repairs down the road.
Inspection fees in the Chicago area range from around $450 to $950 or more, depending on the size of the home and the scope of the inspection. You may also order supplemental inspections, such as sewer, radon, termite, and others, to make sure you are comprehensively covered.
Closing costs are paid on the final day of the sale when the title is transferred to you. They include all other fees not paid before this – typically amounting to 2% to 3% of the sale price – and are often shared by the buyer and the seller. The buyer normally pays for the fees related to acquiring the mortgage, as well as title fees, attorney’s fees, HOA fees, insurance, and others.
Common home selling costs
Selling a home also comes with a set of fees you may not know about:
- Preparation costs
- Agent’s fees
- Other closing fees
Before putting your home on the market, you should first make sure it is sale-ready, and that can mean having it professionally cleaned and making the necessary repairs. In certain cases, we might even recommend a few renovations to boost the value of the property.
You’ll also need at least 10 high-quality photos of your property, so you will want to prepare for professional photography costs. If you need to stash away some of your belongings while your home is on the market, you may also have to set aside funds for storage.
The fee that your real estate brokerage collects at closing will come from the sale proceeds and can be as low as 4.5%-6% of the sale price. Your listing agent splits this commission with the buyers agent.
As previously mentioned, closing fees are shared by the buyer and the seller. In addition to the brokers’ commissions, your part of the closing costs as the seller includes: your attorney’s fees, prorated property taxes (or property taxes while you’re still the legal owner of the home), the plat of survey fee (which ranges from $450-$650 for regular-sized lots), and any other costs you agreed to pay in your negotiations with the buyer.
Buying or selling a home in Chicagoland can be complicated. This is why you need the guidance of experienced professionals. If you’re interested in working with trusted< Realtors to buy a house, call our team of Real Estate experts at United Realty Group today!
