Quick answer: When you sell a home in Cook County, plan for state and county transfer taxes (a combined $1.50 per $1,000 of the sale price), any city or village transfer tax, the owner’s title insurance policy, your attorney’s fee, a survey, the brokerage commission you agreed to, and a property tax credit to the buyer. Your mortgage payoff comes out of the proceeds too. Here’s each cost in plain English.
Seller closing costs at a glance
| Cost | What to expect |
|---|---|
| Illinois transfer tax | $0.50 per $500 of the sale price ($1.00 per $1,000) |
| Cook County transfer tax | $0.25 per $500 of the sale price ($0.50 per $1,000) |
| City or village transfer tax | Depends on the municipality. In Chicago the seller pays $1.50 per $500; suburbs set their own rates and rules |
| Owner’s title insurance | Customarily paid by the seller in Cook County; the premium scales with the sale price |
| Real estate attorney | Usually a flat fee |
| Survey | Sellers of single-family homes customarily provide a current survey |
| Brokerage commission | Set in your listing agreement and negotiable |
| Property tax proration | A credit to the buyer for taxes not yet billed |
| Mortgage payoff | Your remaining loan balance plus interest to the payoff date |
This is general information, not legal or tax advice. Your attorney and the title company provide exact figures for your sale.
Transfer taxes: state, county and local
Illinois charges $0.50 for every $500 of the sale price, and Cook County adds $0.25 per $500. Both are customarily paid by the seller. On a $500,000 sale that is $500 to the state and $250 to the county, $750 in total.
Many municipalities add their own transfer tax or require a transfer stamp before closing. In Chicago the city tax is split: the buyer pays $3.75 per $500 and the seller pays $1.50 per $500, which is $1,500 for the seller on a $500,000 sale. North-suburban villages such as Lincolnwood, Skokie, Morton Grove, Niles, Glenview and Evanston each set their own rate and decide whether the buyer or seller pays, and some also require a final water reading or an inspection. These rules change, so I confirm the current requirement for your address before you list.
Title insurance and title company charges
In Cook County the seller customarily pays for the buyer’s owner’s title insurance policy. The premium is based on the sale price, and the title company also charges for items such as the title search, closing protection letters and recording a release of your mortgage. Your attorney orders title early so any issues, like an old lien that was never released, are cleared before closing.
Attorney, survey and association fees
- Real estate attorney. In the Chicago area both sides typically use attorneys. Seller’s attorneys usually charge a flat fee and handle the contract review, title and closing documents.
- Survey. For a single-family home, the seller customarily provides a current survey showing the lot lines and improvements. Condos generally do not need one.
- Condo or HOA charges. Associations often charge for the paid-assessment letter and disclosure documents, and some have move-out fees.
Property tax proration
Cook County property taxes are paid a year behind. When you close, you have lived in the home for months of taxes that have not been billed yet, so you give the buyer a credit for them. Because the next bill is usually higher than the last one, contracts commonly calculate the credit at a little over 100% of the most recent full-year bill. This is often one of the largest lines on a seller’s closing statement, and it catches many sellers by surprise.
Brokerage commission
Commission is set in your listing agreement and is always negotiable. Since 2024, any compensation for the buyer’s agent is negotiated separately rather than advertised through the MLS, so it is something we decide on together as part of your pricing and offer strategy.
Credits, repairs and your mortgage payoff
Inspection credits, closing-cost credits you agree to give the buyer, and your mortgage payoff all come out of your proceeds at closing. Your lender’s payoff letter includes interest through the payoff date, so the figure is slightly higher than the balance on your last statement.
How to know your number before you list
Before you list, I prepare an estimated net sheet showing roughly what you would walk away with at different sale prices, with each cost above filled in for your address. It takes the guesswork out of deciding whether and when to sell. Start with a free home value estimate, or see my step-by-step guide to selling a house in Lincolnwood and the free seller’s guide.
Frequently asked questions
Who pays transfer taxes in Illinois?
The seller customarily pays the Illinois and Cook County transfer taxes, a combined $1.50 per $1,000 of the sale price. Local transfer taxes depend on the municipality: some charge the seller, some the buyer, and Chicago splits it.
Who pays for title insurance in Cook County?
By custom the seller pays for the owner’s title policy that protects the buyer, and the buyer pays for the lender’s policy required by their mortgage.
How are property taxes handled when I sell?
Because Cook County taxes are billed a year behind, the seller credits the buyer at closing for the taxes owed through the closing date. The exact formula is written into your contract.
Do sellers pay the buyer’s closing costs?
Not automatically. A buyer can ask for a closing-cost credit as part of their offer, and it is one of the terms we negotiate. What matters is your net after all credits, not just the offer price.
How much will I walk away with?
It depends on your sale price, mortgage payoff, tax credit and local requirements. I can prepare a free estimated net sheet for your address: call or text 847-561-8987.
Al Kolovic is a Licensed Managing Broker with CENTURY 21 Circle, 3372 W Devon Ave, Lincolnwood, with $80M+ in career sales and 170+ homes sold across Chicago and the North Shore.
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