In March 2023, the average cost of houses for sale in Chicago was $272,270. If you plan to take advantage of these home selling prices, take note. There are some home selling fees that you should prepare for.
Fortunately, this article is a great place for you to start. We'll cover the basics of the total cost of selling your home in the Chicago area. Keep reading so you know what to expect.
Real Estate Agent Commissions
This is typically the most significant cost of selling a home in Chicago, Illinois. The standard commission rate for real estate agents is 5-6% of the home's sale price. This commission is split between the buyer's agent and the seller's agent, with each receiving half of the total commission.
For example, if you sell your home for $500,000, the total commission at 6% would be $30,000. In that case, $15,000 goes to the buyer's agent, and $15,000 goes to your listing agent.
Closing costs are also major home selling fees to keep in mind. These costs include various fees and expenses related to the home sale. Examples would be title insurance, attorney fees, and transfer taxes.
On average, the total closing costs typically range from 2% to 5% of the home's sale price. Make sure you're prepared for this expense, and decide if it's worth selling your home in the first place.
This is of particular importance for people trying to short-sell their homes to prevent foreclosure. They're already in financial duress and need to be strategic about the next steps.
Home Repairs and Renovations
Home repairs and renovations are another factor to consider when selling your home in Chicago. Depending on the condition of your home, you may need to make repairs or renovations before putting it on the market and planning a move.
These costs can vary significantly depending on the extent of the repairs or renovations needed. Investing in these home improvement projects can be of great value, though. It's an ideal way to boost the curb appeal and, therefore, the attractiveness of your home to potential buyers.
Another way to make your home more attractive to potential buyers is to pay for professional staging services. These can cost anywhere from a few hundred dollars to several thousand dollars, depending on the size and condition of your home.
Also, before listing your home, you may want to have it inspected to identify any potential issues that could affect the sale. A home inspection typically costs around $300-$500. Still, this could save you money in the long run by avoiding surprises during negotiations.
Avoid the Cost of Selling Your Home
Now, you have a good idea of the total cost of selling your home in the Chicago area. From realtor costs to closing costs, your budget should be padded with plenty of room for these expenses.
Instead of spending money to get rid of the property, though, you could also consider earning income from the home. You can do this by renting it out through a reputable property management company. Learn more about how Chicago property management services could benefit you today.
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