• How do I estimate my closing costs and net proceeds from the sale?

    August 22, 2015 | Blog
  • ESTIMATE YOUR CLOSING PROCEEDS

     

    What is your Projected Sales Price: _______________________________________

    To estimate your net proceeds, subtract numbers 1 through 17 below from the projected sales price.  This calculation should provide you with a fairly close estimate.

    1)     MORTGAGE PAYOFF: ____________________________

    2)     HELOC / LOAN PAYOFFS: ___________________________

    3)     REAL ESTATE COMMISSION: _________________________

    (Check with your Broker, but probably about 5%. If be sold FSBO, then 0 – 2.5%)

    4)     PRORATED PROPERTY TAXES:  ________________________

    (Because property taxes are about a year behind, take your last known yearly tax bill and add 5% – 10% to that amount.  Divide this number by 365 days and then multiply by what day of the year you will be selling.  Example:  If your taxes are $5,000 per year and you are selling on December 31, you will credit the buyers $5,250 to $5,500 at the closing.)

    5)     SURVEY ($400 to 450 for single lot): ______________________

    (for larger properties, add about $50 per ½ acre)

    6)     TITLE INSURANCE: _________________________

    (Sellers are required to pay for this in Illinois.  Base cost is approximately $1,700 for a $200,000 home.  Add $20 for every $10,000 additional over and above a $200,000 sales price)

    7)     TITLE COMPANY CLOSING COSTS ($100 to $400+): __________________

    (If your property is already paid off and you don’t owe anything, the extra closing costs may only be $100 or so; but if you have loans that must be paid off or other documents to record, the fees will be higher.)

    8)     ESCROW FEE ($0 or $600+): _______________________________

    (Sellers will pay part of the Buyer’s closing costs IF the Buyer is paying cash. Therefore, if they are paying cash, input $600.  If the sales price is over $250,000, add another $25 for each $50,000 in sales price.  However, if the buyer of your house is getting financing, input “0” in this box.)

    9)     STATE TRANSFER TAX: _________________________

    (The State of Illinois gets $1 for every $1,000 in sales price.  Therefore if you are selling for $200,000, the State will get $200.)

    10)     COUNTY TRANSFER TAX: __________________________

    (The County gets $.50 for every $1,000 in sales price.  Therefore if you are selling for $200,000, the County will get $100.)

    11)     LOCAL VILLAGE  / CITY TRANSFER TAX: ________________________

    (Call your local village.  Some are $0; others are $2, $3, $5, or even $10 per $1,000 in sales price.  Chicago charges the Seller $3 per $1,000.)

    12)     LOCAL INSPECTIONS: ______________

    (Call your local village to see if an inspection is required.  Most charge $50 – $100 and require this inspection to ensure the property is safe to occupy.)

    13)     WATER CERTIFICATES / ZONING ($0 – $300): _____________

    (Call your local village, some only require water bills.  Chicago usually requires a water certificate and a zoning certificate; assuming you don’t have past due bills, estimate $275)

    14)     CONDO OR HOA DOCUMENTS ($0 to $750): _____________________

    (Most associations charge Sellers for the association documents and Paid Assessment Letter.)

    15)     WELL / SEPTIC / TERMITE Tests (if req’d): __________________

    (Well and septic tests cost about $300; termite inspection is about $125.)

    16)     REPAIR CREDITS GIVEN TO BUYER (if any): ______________________

    17)     ATTORNEY FEES: _______________________________

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