Most sellers I meet know the commission and not much else. Commission is the biggest line, but in Illinois a couple of others are larger than people expect, the property tax credit most of all. Here is what usually comes out of the sale price.
The short list
- Real estate commission, set in your listing agreement and negotiable
- State and county transfer tax
- A city or village transfer tax, where one applies
- The property tax credit to the buyer
- Your real estate attorney
- Owner's title insurance and title company charges
- Your mortgage payoff and any liens
- Condo or HOA paperwork, if there's an association
- Whatever you spend getting the house ready
Commission
Commission is negotiable and always has been. It's written into your listing agreement, along with whether you're offering anything toward the buyer's agent. Since August 2024, offers of compensation to buyer's agents can't be posted on the MLS. Since January 1, 2025, Illinois law requires a written agreement with every client, buyers included, that states what the brokerage will charge. So who pays the buyer's agent is now settled deal by deal, and I'll show you how it's playing out in your price range before you decide.
Transfer taxes
Illinois charges a transfer tax when the deed is recorded. By custom the seller pays the state and county portions. Your contract can change who pays what.
| Tax | Rate | On a $500,000 sale | Usually paid by |
|---|---|---|---|
| Illinois | $0.50 per $500 | $500 | Seller |
| Cook County | $0.25 per $500 | $250 | Seller |
| Chicago, city portion | $3.75 per $500 | $3,750 | Buyer |
| Chicago, CTA portion | $1.50 per $500 | $1,500 | Seller |
Inside Chicago, a seller at $500,000 pays about $2,250 in transfer taxes and the buyer pays $3,750. Chicago has debated higher rates for expensive homes (a 2024 ballot measure to do that was voted down), so on a sale above $1 million, have your attorney confirm the rate in force on your closing date.
Outside Cook County the state tax still applies and the county collects its own portion. Many suburbs add nothing, but some villages charge their own transfer tax, and some require a final water reading or a point-of-sale inspection before they'll issue the transfer stamp. It differs village by village, so I check it for your address at the start, not the week of closing.
The property tax credit
Illinois property taxes are paid a year behind: the bills you pay this year are for last year. When you sell, you owe the buyer a credit for taxes that built up while you owned the house but haven't been billed yet.
In Cook County the first installment each year is 55 percent of the previous year's total, and the second installment reflects the new rates and assessment. Because the final number usually isn't known at closing, contracts commonly prorate at a percentage of the last full bill, often somewhere from 100 to 110 percent. Depending on when you close, the credit can be larger than a full year's bill, because it may cover the unpaid part of last year as well as this year to date.
It isn't an extra cost, exactly. You'd have paid those taxes if you stayed. But it comes out of your proceeds at closing, so it belongs on your net sheet from the first conversation.
Attorney, title and closing
In the Chicago area, buyers and sellers almost always hire their own real estate attorney. It's strong local custom rather than a legal requirement. The attorney handles the review period after you accept an offer, negotiates inspection issues and runs your side of the closing. Many charge a flat fee; ask for it in writing.
By local custom the seller usually pays for the owner's title insurance policy, and the buyer pays for the lender's policy. Order the title commitment early, so an old lien or a recording problem turns up long before closing day.
If you own a condo or townhouse
A condo buyer is entitled to a set of association documents under the Illinois Condominium Property Act, and associations often charge a fee to prepare them. Some also charge move-out or transfer fees. Ask your management company for its fee list when you list, not after you have a contract.
Getting the house ready
This is the cost you control. Some repairs return more than they cost. Most cosmetic ones don't. I walk the house with you and give you a straight list before you spend anything.
Before you sign anything, I’ll put all of this on one page: the price range from closed sales, every cost above, and what you’d walk away with. Ask for a net sheet.
Questions people ask
Who pays transfer tax in Chicago?
By custom the seller pays the Illinois and Cook County taxes and the $1.50 per $500 CTA portion of the city tax, and the buyer pays the city's $3.75 per $500. The contract can change that.
Do I need a lawyer to sell a house in Illinois?
It isn't legally required, but in the Chicago area it's standard for both sides to have one, and the usual contract is written around an attorney review period.
Is real estate commission negotiable in Illinois?
Yes. It's set in your listing agreement, and since January 1, 2025 Illinois law requires the brokerage's compensation to be stated in a written agreement.
Why do I owe the buyer property taxes at closing?
Illinois property taxes are paid in arrears. The credit covers taxes for the time you owned the home that haven't been billed yet.