In real estate there’s the number someone sells their house for, then there’s the number the person actually puts in their pocket. Many people are surprised to find the pocketed number is usually less than 90% of their ‘sale price.’
For Chicago and neighboring suburbs, in this market there are often seller concessions of 3% given. It’s what the buyers are demanding in this market for Chicago, Illinois and surrounding suburbs. Here are a few more items that often go overlooked when selling a house.
Costs to Sell House Chicago
- Realtor’s Commissions (6%)
- In traditional real estate transactions, the seller pays the commission for both the buyer and the seller with that usually being 3% on each side. On a $200,000 house that comes out to $12,000 less the seller is able to put in their pocket. Even if you plan to try and save money and list the property yourself, you will still have to pay the buyer’s agent 3%. Close to 90% of buyers have an agent they work with, so this is not a fee you can get away from.
- Holding Costs (1-2%)
- One of the most overlooked costs is that of holding costs before you sell. It’s not uncommon for a house to be on the market to sell for 1-3 months, then another 1-2 months to wait for financing to go through. Unfortunately, it’s also not uncommon for financing to fall through; then the whole process begins all over again. Mortgage payments, property taxes, utilities, HOA fees, insurance, etc. all add up very quickly.
- Home Preparation (1-2%)
- Some real estate agents refuse to list a house unless it’s ‘show ready’. At the minimum you’ll need to clean and remove items that create clutter. Likely put on a fresh coat of paint and new carpet. All of these tasks cost and if nothing else it costs you time. Time is valuable and has a cost to it as well, right? Remember, the less you do, the less you can expect to get for your house. It’s a tradeoff.
- Closing Costs (2-3%)
- The property has finally closed and your are ready to get this over with. Wait, there is one last fee left to take a little more money out of your takeaway: closing costs! The lawyer you use, the title company hosting the closing, the city for transfer stamps; everyone wants a piece of the pie at this point.
- Seller Concessions (2-5%)
- Buyers usually request that a lot of the ‘smaller’ ticket items such as inspection fees, transfer taxes, their part of the closing costs are taken care of by the seller. On top of that, $3-7,000 cash back at closing is often requested. And, in the Chicago market, that is often given.
- Repair Costs (based on inspection)
- Don’t think someone’s going to buy your house without a proper inspection being done. And you can be sure these inspectors find everything! They’re paid to uncover the smallest of deficiencies and buyers in this market want it all so be prepared to fix their requests or give them a credit for deficient items AKA less money in your pocket.
- Low Appraisals (renegotiate deal)
- Picture yourself having all your ducks in a row and ready to move on and be done with this house. Then, right before closing, the appraisal comes in below what you’re selling it for. Back to the drawing board because when you sell to someone who is financing their house through a bank, the bank will NOT lend on that house unless it meets or exceeds the appraisal value. Time to renegotiate and lower the price down which means you’re bottom line just got lowered.
- Pro-Rated Taxes (2%)
- Illinois is one of the states that has home owners pay the property taxes in arrears. What this means is you pay for time already passed. So, when you sell your house, it is customary in Illinois to pay the taxes for the time you’ve owned the house. If you recall, when you purchased the house you likely received a credit from the seller. This will also need to be given by you when you sell.
- Total Amount Taken Off (~17%)
- There are many variables here, but the underlying point is the amount you sell a house for is far from the amount you end up putting in your pocket; not to mention the extra time and headaches. Sometimes it’s money you pay for leading up to the sale and sometimes it’s money taken out directly at the closing table.
Notice a recurring theme here? Hoping you consider all the costs to sell your Chicago house before you put it on the market. And this is all while several months up to a full year have elapsed. When you sell to Windy City Solutions, you don’t have to fix or clean anything. Don’t have to worry about the appraisal coming in at price because, luckily for you, we don’t even get appraisals. One or two of our team members will walk through the house, give it a once over and then you’re done. With our all-cash offer we can take care of all the above fees and get you moving on your way in as little as 1 week!
We work out of the Chicago market to buy houses quick for all cash. We love the suburbs and have conducted business in Orland Park, Tinley Park, Romeoville, Aurora, Naperville, Berwyn, Cicero, Calumet City, Oak Forest, Plainfield, Oak Lawn, Bolingbrook, Joliet, Chicago Heights, Calumet City, Country Club Hills and Dolton.