By Summerville Partners
One of the most common surprises we see buyers encounter — even experienced ones — is how much money is required at closing beyond the down payment. Illinois tends to run higher than the national average on closing costs, and the Chicago and Evanston markets add layers of local transfer taxes that buyers coming from other states rarely anticipate. Knowing what to expect well in advance allows buyers to budget accurately, avoid last-minute stress, and make offers with full confidence in what they can actually afford to close.
Key Takeaways
- Illinois buyers typically pay between $8,500 and $14,300 in total closing costs, roughly 2.75 to 4.6 percent of the purchase price, depending on location, loan type, and property.
- Chicago's municipal transfer tax is among the highest of any American city, and the progressive rate structure that took effect in 2025 increases costs further on properties above $1 million.
- Cook County property taxes are paid in arrears, meaning buyers at closing are typically required to reimburse the seller for a portion of the current tax year — a significant line item that surprises many buyers.
- Attorney fees are effectively standard in Illinois real estate transactions, adding $800 to $1,500 or more to the closing cost total.
Transfer Taxes: The Cost That Catches Buyers Off Guard Most Often
Illinois imposes a state real estate transfer tax of $0.50 per $500 of purchase price. Cook County adds another $0.25 per $500. On top of that, many municipalities add their own layer. The result varies considerably depending on where the property is located.
In Chicago, the combined municipal transfer tax is $10.50 per $1,000 of sale price. Buyers pay $7.50 per $1,000 and sellers pay $3.00 per $1,000. On a $600,000 home in Chicago, the buyer's share of the city transfer tax alone is $4,500 — before state and county taxes are added. A 2025 change introduced a progressive rate structure for properties selling above $1 million, with rates climbing to 2.0 percent between $1 million and $1.5 million and 3.0 percent above $1.5 million.
Evanston's municipal transfer tax is collected from sellers rather than buyers, which is a meaningful distinction for buyers purchasing in the city versus Chicago. Wilmette, by contrast, charges buyers. These municipality-specific rules matter and are worth confirming with your agent and title company before making an offer.
In Chicago, the combined municipal transfer tax is $10.50 per $1,000 of sale price. Buyers pay $7.50 per $1,000 and sellers pay $3.00 per $1,000. On a $600,000 home in Chicago, the buyer's share of the city transfer tax alone is $4,500 — before state and county taxes are added. A 2025 change introduced a progressive rate structure for properties selling above $1 million, with rates climbing to 2.0 percent between $1 million and $1.5 million and 3.0 percent above $1.5 million.
Evanston's municipal transfer tax is collected from sellers rather than buyers, which is a meaningful distinction for buyers purchasing in the city versus Chicago. Wilmette, by contrast, charges buyers. These municipality-specific rules matter and are worth confirming with your agent and title company before making an offer.
Property Taxes Paid in Arrears
Illinois property taxes are paid in arrears, which means the taxes for the current year are paid the following year. At closing, buyers typically receive a credit from the seller for the portion of the tax year the seller owned the property — but this also means buyers need cash to fund the escrow account their lender will require for property taxes going forward. In Cook County, where property tax rates vary significantly by municipality and are reassessed on a rotating schedule, this can represent a substantial line item in the closing cost calculation.
Loan-Related Costs
Most loan types come with origination fees, typically 0.5 to 1 percent of the loan amount, plus processing and underwriting fees, an appraisal ($300 to $800 depending on the property), and a credit report fee. Prepaid interest from the closing date to the first mortgage payment, plus the first year of homeowner's insurance, are also typically collected at closing.
Title insurance — required by lenders and strongly advisable for buyers in the form of an owner's policy — is regulated in Illinois, so rates follow a consistent schedule and do not vary meaningfully between title companies. For a $500,000 property, title insurance typically runs in the range of $1,500 to $2,000 for both the lender's and owner's policies combined.
Title insurance — required by lenders and strongly advisable for buyers in the form of an owner's policy — is regulated in Illinois, so rates follow a consistent schedule and do not vary meaningfully between title companies. For a $500,000 property, title insurance typically runs in the range of $1,500 to $2,000 for both the lender's and owner's policies combined.
Attorney Fees
Unlike many states, Illinois effectively requires attorney involvement in real estate transactions, and buyers in Evanston and Chicago virtually always have legal representation at closing. Attorney fees for standard residential closings typically range from $800 to $1,500, with more complex transactions running higher. This is not optional and should be budgeted for from the start.
HOA Fees and Special Assessments
For buyers purchasing a condominium or property in a homeowner's association, additional costs apply at closing. HOA transfer fees, prorated monthly assessments, and any outstanding or pending special assessments all affect the closing cost total. In Chicago's condo market in particular, buyers should request the association's financial disclosures and reserve fund status before going under contract — a building with underfunded reserves or a pending special assessment is a material financial consideration.
Frequently Asked Questions
How do closing costs in Evanston compare to Chicago?
The biggest difference is the municipal transfer tax. Evanston's transfer tax falls on sellers, which means buyers in Evanston avoid that specific line item. In Chicago, buyers pay a significant share of the city's transfer tax on top of state and county costs. For buyers comparing properties across both markets, this difference can be meaningful at higher price points.
Can closing costs be negotiated or reduced?
Some components can be. Buyers can negotiate seller concessions to offset closing costs, though this is less common in competitive markets where sellers have leverage. Lenders may offer credits in exchange for a slightly higher interest rate. Attorney fees are sometimes negotiable. Transfer taxes and title insurance rates are effectively fixed. We walk every buyer through what is and is not moveable in the specific transaction.
When will I know the exact amount I need to bring to closing?
Your lender is required to provide a Loan Estimate within three business days of a completed loan application, and a Closing Disclosure at least three business days before closing. The Closing Disclosure gives you the final, exact figure. We recommend buyers have a buffer of at least 10 percent above their estimated closing costs to account for any last-minute adjustments.
Buy Your Evanston or Chicago Home With Summerville Partners
We have been guiding buyers through Evanston and Chicago real estate for more than 30 years, and we make sure no one we work with is surprised at the closing table. From the first conversation through the final signature, our team helps buyers understand exactly what a purchase will cost — and how to position themselves to close with confidence.
Reach out to us to learn more about how we guide buyers in Evanston and Chicago.
Reach out to us to learn more about how we guide buyers in Evanston and Chicago.
