🏡 Closing Costs Explained: What Buyers and Sellers Actually Pay

The offer is accepted - but before the keys change hands, there’s one more expense to understand: closing costs.

Here’s where the money actually goes. 👇

🏡 What Buyers Typically Pay

Closing costs are separate from the down payment and commonly range from approximately 2% to 5% of the mortgage amount.

Buyer expenses may include:

• 🏦 Loan and lender fees

• 🔍 Home inspection and appraisal

• 📄 Title search and title insurance

• 🏛️ Recording and settlement fees

• 🛡️ Homeowners insurance

• 📅 Prepaid taxes and mortgage interest

• 💵 Initial escrow deposits

🔑 What Sellers Typically Pay

Sellers usually cover expenses related to transferring the property and completing the sale, which may include:

• 🤝 Negotiated agent compensation

• 🏷️ Transfer, title, or attorney fees

• 🧾 Prorated property taxes and HOA fees

• 🛠️ Agreed-upon repairs or buyer credits

• 🏦 Remaining mortgage balance and liens

🤔 Can Closing Costs Be Negotiated?

Sometimes! Buyers may request seller assistance with eligible closing expenses, while sellers can compare offers based on their estimated net proceeds—not only the purchase price.

The final amount depends on the property, location, financing, and negotiated contract terms.

✅ Know the Numbers Before Closing

Buyers should compare their Loan Estimate with the final Closing Disclosure and ask about unexpected changes. Sellers should request a net proceeds estimate to understand how much they may receive after all deductions.

📲 Planning to buy or sell in Chicago? Let’s make sure the numbers are clear before you make your move.

Get your free home evaluation here or request a cash offer here today.

Costs vary by transaction. This information is for general educational purposes and is not legal, tax, or financial advice.