Are you wondering who pays which fees when you buy or sell a home in La Grange? You are not alone. Closing costs can feel murky, and the Cook County rules add a few twists most people do not expect. In this guide, you will see what buyers and sellers typically pay in La Grange, what is negotiable, how local transfer taxes and property tax prorations work, and the practical steps to plan your bottom line with confidence. Let’s dive in.
What closing costs cover in La Grange
Closing costs are the fees and charges due at the end of a real estate transaction. They include lender fees, title and recording charges, transfer taxes, insurance, inspections, and prepaid items like interest and property taxes. In Cook County, property taxes are paid in arrears, so prorations at closing matter.
You will see your final numbers on a standardized Closing Disclosure if you are using a mortgage. This document breaks down both buyer and seller charges and credits. The title company or closing attorney prepares it and coordinates payments on closing day.
Local rules that affect your bottom line
Transfer taxes in Illinois and Cook County
Illinois imposes a state real estate transfer tax. Cook County also administers recording and transfer-related filings that affect closings. La Grange is outside the City of Chicago, so Chicago’s municipal transfer tax does not apply, but state and county rules do. Who pays the transfer tax is negotiable in many Illinois transactions and can vary with market conditions. To confirm current rates and filing steps, review the Illinois Department of Revenue transfer tax guidance and Cook County Clerk resources:
- Check state transfer tax rules with the Illinois Department of Revenue.
- Review county recording and transfer procedures with the Cook County Clerk.
Property tax prorations in Cook County
Cook County property taxes are billed at the county level and typically paid in arrears. At closing, taxes are prorated so each party pays for their share of the tax year based on the closing date. The seller usually pays taxes due through the day of closing and receives credit for anything already paid.
Because the county’s assessment and billing calendar can be complex, your title company will calculate exact prorations using the property’s tax history and current assessments. For general schedules and payment history, you can review the Cook County Treasurer resources.
Title insurance custom in the Chicago area
Title insurance practices are regional. In many Chicago and Cook County transactions, the seller often provides the owner’s title insurance policy so the buyer receives clear title, while the buyer pays for the lender’s policy if there is a mortgage. This is a common custom, not a legal rule, and it is negotiable. Confirm the current local practice with your title company.
Typical buyer costs in La Grange
Most buyer costs relate to the mortgage, title and recording, inspections, and prepaid items. Your lender’s Loan Estimate will show your projected charges early in the process. As a planning rule of thumb, buyers often budget about 2% to 5% of the purchase price for closing costs, in addition to the down payment.
Lender and loan fees (usually buyer)
- Loan origination, underwriting, processing, and application fees.
- Appraisal, credit report, flood certification, and tax service fees.
- Discount points if you choose to buy down your rate.
Title and recording items (usually buyer or split)
- Lender’s title insurance policy if you have a mortgage.
- Recording fees for your mortgage; deed recording fees may be paid by either party depending on custom or negotiation.
- Owner’s title policy is often paid by the seller in the Chicago area, but confirm locally.
Prepaids and escrows (buyer)
- Prepaid mortgage interest from the closing date to your first payment.
- Initial escrow deposits for homeowner’s insurance and property taxes if required by your lender.
Inspections, survey, and HOA fees (usually buyer)
- Home inspection, pest inspection, and any lender-required checks or tests.
- A property survey if required.
- Any HOA application or transfer fees, depending on the association’s rules.
Government and municipal charges (negotiable)
- Portions of transfer or recording taxes, if agreed to in the contract.
Tip: Ask your lender for a Loan Estimate early and compare it to the final Closing Disclosure. For a plain-language overview of the Closing Disclosure, visit the Consumer Financial Protection Bureau.
Typical seller costs in La Grange
Seller costs are dominated by brokerage commission and title or transfer-related items. The exact mix depends on your payoff, local custom, and any credits you agree to provide.
Real estate commission (seller)
- Commission is commonly around 5% to 6% of the sale price, paid from proceeds at closing. It is negotiable, but it is typically the largest seller expense. For national context on transaction practices, you can explore resources from the National Association of REALTORS.
Title and transfer items (often seller, but negotiable)
- Owner’s title insurance policy is often provided by the seller in many Chicago-area deals to convey clear title.
- Transfer taxes may be paid by either party or split, depending on local custom and the contract.
Mortgage payoff and prorations (seller)
- Payoff of your existing mortgage and any applicable fees.
- Prorated Cook County property taxes through the day of closing, offset by credits for any amounts already paid.
- Utility final readings and any outstanding HOA assessments or municipal items, if applicable.
Seller concessions and credits (seller)
- You can offer buyer credits to cover some closing costs, provide a rate buydown, or address repairs. These are negotiation tools and can help a sale move forward in a softer market.
Other expenses (variable)
- Attorney’s fee if you use one, a home warranty if offered, and any municipal compliance items.
As a planning range, total seller costs including commission commonly fall around 6% to 10% of the sale price. For a state-level perspective on closing norms and forms, visit Illinois REALTORS.
What is negotiable and how loans affect it
Many closing costs are negotiable. In a competitive seller’s market, buyers may cover more costs to win the home. In a softer market, sellers sometimes agree to cover some buyer closing costs or provide credits.
Loan programs set limits on how much a seller can contribute:
- FHA loans commonly allow seller concessions up to 6% of the sale price for certain closing-cost and prepaid items.
- VA loans commonly allow seller concessions up to 4% for specific items, and VA has special rules about what is allowable.
- Conventional loans vary based on down payment and other factors. Your lender will confirm the exact cap.
Always confirm maximum seller-paid amounts and which fees are eligible with your lender. This avoids surprises in underwriting and keeps your loan on track.
How your closing statement shows who pays
If you have a mortgage, your settlement will use the standardized Closing Disclosure that lists buyer and seller charges and credits side by side. The final numbers can shift from early estimates based on updated prorations, final invoices, or lender underwriting. Review the Closing Disclosure carefully as soon as it is available. For consumer-friendly guidance on reading it, the Consumer Financial Protection Bureau is a helpful resource.
Quick checklists for buyers and sellers
Buyer checklist
- Ask your lender for a Loan Estimate and budget roughly 2% to 5% of the purchase price for buyer closing costs.
- Plan for inspections, appraisal, and any lender-required surveys or tests.
- Confirm who pays for the owner’s title policy in your offer based on current local custom.
- If you want seller credits, confirm program limits with your lender and include the request in your offer.
- Review the Closing Disclosure as soon as you receive it and ask questions quickly.
Seller checklist
- Request an estimated net sheet from your agent that includes commission, owner’s title policy, transfer taxes, prorations, and expected payoff.
- Order a mortgage payoff quote early and check for any prepayment fees.
- Resolve municipal items and HOA balances before closing.
- Decide whether you will offer buyer credits or a rate buydown to support negotiations.
- Confirm current local custom for transfer tax allocation and title policy with your title company.
Local resources to consult
- State transfer tax and filings: Illinois Department of Revenue
- County recording and transfer procedures: Cook County Clerk
- Property tax schedules and payments: Cook County Treasurer
- Consumer guidance on the Closing Disclosure: Consumer Financial Protection Bureau
Ready to see your exact numbers for a La Grange purchase or sale? Get a local estimate for your scenario and a clear plan for who pays what. Reach out to Angela Walker for a personalized walkthrough and next steps.
FAQs
What are typical buyer closing costs in La Grange?
- Buyers often budget about 2% to 5% of the purchase price for closing costs, covering lender fees, title and recording, inspections, and prepaid items.
Who usually pays the owner’s title policy in Cook County?
- It is common for sellers to provide the owner’s title policy in many Chicago-area transactions, but it is a negotiable custom rather than a legal rule.
How are Cook County property taxes handled at closing?
- Taxes are typically paid in arrears and prorated so the seller pays through the day of closing, with exact amounts calculated by the title company.
Are transfer taxes in La Grange paid by the buyer or seller?
- Payment is negotiable in many Illinois transactions and can vary by market conditions; confirm current rates and practices with your title company and county.
How much can a seller contribute to buyer costs under loan rules?
- FHA commonly allows up to 6%, VA commonly up to 4%, and conventional caps vary by down payment; your lender will confirm exact limits.
