The Real Costs of Closing in Chicago: What Buyers and Sellers Need to Know

Chicago Closing Costs 2025: What Buyers & Sellers Pay

This is Chicago—big skyline, big flavor, and yes, a few costs when it’s time to close the deal.

Whether you're buying or selling in Chicago, Illinois, it’s important to understand the real costs involved. From transfer taxes to title insurance, both sides have skin in the game. Here's what you need to know—short, smart, and to the point. Approximately 12,700 homes are sold every day in this country. But today, we focus on our City and its rules for a real estate transaction. 

For Sellers: What You Can Expect to Pay

Typical range: 2%–5% of the sale price plus the broker's professional fee.

Breakdown:

• City Transfer Tax: $1.50 per $500 of sale price

• Illinois Transfer Tax: $0.50 per $500 of sale price

• Title & Recording Fees: ~$1,500–$2,000

• Owner’s Title Insurance: ~$600–$900

• Property Tax Proration: Based on the unpaid portion (Chicago’s rate ~1.93%)

• Attorney Fees: Typically $750–$1,250

• Buyer Credits or Concessions: Negotiable if part of the conversation. 

On a $500K sale, this can mean $15,000–$30,000+ out of pocket.

The Real Cost of Real Estate: Let’s Change the Conversation

For Buyers: What You'll Need to Budget

Typical range: 2%–3% of the purchase price.

What’s included:

• Buyer’s City Transfer Tax: $3.75 per $500 of sale price

• Lender Fees & Appraisals: ~$1,000–$2,500

• Title Insurance (Lender’s policy): ~$1,000

• Home Inspection & Survey: ~$500–$1,200

• Escrows for Property Tax/Insurance: Varies

• Attorney Fees: Typically $750–$1,250

A $500K purchase can require $10K–$20K in closing funds.

The new buyer broker agreement rule is now part of the process. It acknowledges what should have always been true: if someone is working for you, they deserve to be paid.

How These Costs Impact Both Sides

These fees may feel hefty, but they’re part of the Chicago real estate experience. Buyers need liquid funds ready. Sellers must plan to avoid overestimating their net proceeds.

In competitive deals, closing costs can significantly influence negotiations, whether it’s a buyer requesting credits or a seller covering transfer taxes. 

Why pricing strategy matters more than ever

Our View

When clients ask why Chicago closing costs are what they are, we have the same message for all:

“This is the cost to board the real estate train that is this great city.”

It’s part of the privilege of owning here.

Your real estate attorney will prepare the actual closing figures. We stay out of that lane, but we make sure you’re connected to the best.

Understand The Process From The Start

In Chicago, closing costs are part of the deal—but they shouldn’t be a surprise. Whether you’re stepping into your first condo or selling a Gold Coast gem, understanding the numbers means fewer hiccups and better decisions.

Stay current with our Summer 2025 market update

— Craig Hogan & Rudy Zavala
Hogan Zavala Group | Engel & Völkers Chicago

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