Average Closing Costs in Illinois: What Homebuyers Should Expect

Buying a home in Illinois comes with more than just a down payment and a monthly mortgage payment. At the closing table, there’s a second bucket of costs that often catches buyers off guard: closing costs.

These fees pay everyone involved in getting the transaction across the finish line—your lender, the appraiser, the title company, the county recorder, and a few others most buyers never meet. Some of these costs are negotiable. Some are not. And in Illinois specifically, transfer taxes can materially move the number.

Let’s break down what closing costs look like in Illinois, why they’re higher than in many states, and how buyers can plan intelligently so there are no surprises on closing day.

Whether you’re buying a condo in downtown Chicago, a starter home in Naperville or Oak Park, a new construction property in Plainfield, or a single‑family home in places like Evanston, Schaumburg, or Elmhurst, the mechanics of closing costs are the same—but the final number can vary meaningfully by location.

How Much Are Closing Costs in Illinois?

Closing costs vary by property, loan type, and location, but Illinois tends to run higher than the national average.

Based on recent statewide data, buyers in Illinois typically pay between $8,500 and $14,300 in total closing costs when purchasing a home. With the median single‑family home price hovering around $310,000, that puts closing costs in the range of roughly 2.75% to 4.6% of the purchase price.

That’s a wide range for a reason. Some costs scale with the loan amount. Others scale with the purchase price. And Illinois adds an extra layer of taxes that many buyers from other states don’t expect.

Why Closing Costs Vary So Much Across Illinois

There’s no such thing as a universal closing cost number—even within the same state.

Many fees are calculated as a percentage of either the loan amount or the home’s value.

For example, a buyer purchasing a condo in River North or the West Loop may face higher total closing costs simply because purchase prices are higher and municipal transfer taxes may apply. Meanwhile, a first‑time buyer purchasing a modest single‑family home in Joliet, Rockford, or Peoria may see materially lower totals—even with the same loan program. So a condo in downstate Illinois and a single‑family home in a Chicago suburb can have dramatically different closing totals.

In higher‑priced markets—particularly around Chicago and its suburbs—closing costs tend to land toward the top of the range. In more rural or agricultural areas, they’re often meaningfully lower.

Every transaction is unique, which is why early estimates matter.

We regularly see this play out with buyers comparing properties across suburbs. A couple buying a townhome in Downers Grove may have similar lender fees to a buyer in Arlington Heights, but differences in local recording fees, HOA transfer costs, and municipal taxes can still shift the bottom‑line number by thousands of dollars.

Common Closing Costs for Illinois Homebuyers

Here’s what typically shows up on a buyer’s Closing Disclosure in Illinois, and why each item exists.

Lender fees. These cover underwriting, processing, and funding the loan. Some lenders bundle these together. Others itemize aggressively. This is one of the most important areas to compare when shopping lenders, because pricing varies widely and some fees are negotiable.

Appraisal. Your lender orders an appraisal to confirm the home’s value supports the loan. The cost usually falls in the low‑to‑mid hundreds, but can increase for larger or more complex properties.

Credit report fees. Lenders pass through the cost of pulling your credit. It’s not a large number, but it’s standard on nearly every loan.

Home inspection. While technically optional, skipping a home inspection is rarely wise. Most buyers hire an inspector themselves, and costs vary based on size, age, and condition of the home.

Title insurance. Illinois uses both lender and owner title policies. The lender’s policy protects the bank. The owner’s policy protects you. This is a one‑time cost, not an ongoing insurance premium.

Recording fees. Counties charge fees to officially record the deed and mortgage.

Prepaid costs. These aren’t fees so much as setup costs. Buyers typically prepay a portion of property taxes, homeowners insurance, and daily mortgage interest so everything is current after closing.

HOA transfer fees. If the property is in a homeowners association, there may be a one‑time transfer or move‑in fee, plus prorated dues.

Real Estate Commissions: What Changed

Historically, sellers in Illinois paid both the listing agent and the buyer’s agent, typically totaling five to six percent of the purchase price.

That structure has changed. Following recent legal settlements, buyer‑agent compensation is no longer automatically paid by the seller. Commissions are now fully negotiable and must be disclosed transparently.

In practice, commissions still exist—they’re just handled more intentionally. Buyers should understand how their agent is compensated before going under contract.

A Simple Closing Cost Example

Consider two common Illinois scenarios.

Let’s put numbers to it.

A buyer purchasing a $325,000 condo in Lakeview with an HOA may see closing costs around $9,000–$10,500 once lender fees, title insurance, recording costs, prepaid taxes, and HOA transfer fees are accounted for. Even though the loan amount may be modest, HOA‑related costs and city‑level fees add up quickly.

Now compare that to a buyer purchasing a $325,000 single‑family home in Aurora or Elgin. With no HOA and fewer municipal add‑ons, that buyer might land closer to the lower end of the range—often saving several thousand dollars despite the same purchase price.

On a home purchase around $320,000, a typical Illinois buyer might see closing costs near $8,500 on the low end, assuming minimal lender fees and standard taxes.

Higher‑priced homes, layered transfer taxes, or premium lender pricing can easily push that number north of $12,000–$14,000.

This is why early, accurate estimates matter.

Are Closing Costs Higher in Illinois Than Other States?

Yes—and transfer taxes are the reason.

This difference is especially noticeable in cities like Chicago, Evanston, and Oak Park, where layered local taxes and higher home values combine to push closing costs above what buyers might expect coming from other states or more rural Illinois markets.

Illinois imposes a state transfer tax when real estate changes hands. Counties can add their own transfer taxes. Some cities and municipalities add another layer on top of that.

The state transfer tax alone is calculated at $0.50 per $500 of the purchase price, paid at closing. Depending on location, county and municipal taxes may also apply.

In some areas, portions of these taxes are split between buyer and seller. In others, the responsibility falls entirely on one party. Local rules matter.

Who Pays Closing Costs in Illinois?

Both buyers and sellers pay closing costs in Illinois, but they pay for different things.

Sellers typically cover:

• Real estate agent commissions
• State transfer tax
• County transfer tax
• Outstanding liens or mortgage payoffs
• Deed preparation and recording related to the transfer

Buyers typically cover:

• Loan origination and lender fees
• Appraisal and credit report fees
• Home inspection
• Lender’s title insurance
• Recording fees for the mortgage
• Prepaid taxes, insurance, and interest
• Any buyer‑side portion of municipal transfer taxes
• HOA transfer fees, if applicable

The exact split depends on the city, county, and what’s negotiated in the contract.

Can You Save Money on Closing Costs?

Sometimes—yes. And in Illinois, the most practical way buyers do this is by negotiating closing cost credits from the seller.

Closing cost credits (often called seller concessions) are credits applied directly toward your closing costs. Instead of lowering the purchase price, the seller agrees to cover a portion of your lender fees, title costs, prepaid taxes, or other hard expenses that would otherwise need to be paid out of pocket.

This strategy is especially effective for buyers who are comfortable with the monthly payment but want to preserve cash. For example, a buyer purchasing a $450,000 home in Naperville might negotiate $10,000 in closing cost credits. The price stays the same, but that credit can substantially reduce the amount of cash due at closing.

Credits can be particularly helpful for condo buyers in places like Chicago, Evanston, and Oak Park, where HOA transfer fees, prepaid assessments, and municipal taxes can quietly add thousands to the final number. In those cases, credits often do more to solve the real problem—cash to close—than a small price reduction ever would.

Price reductions still have their place, but they primarily impact long-term affordability rather than upfront costs. Many buyers find that a modest credit provides more immediate flexibility, especially when closing costs are the main constraint.

The key is timing. These conversations need to happen when the offer is being structured—not days before closing. Early planning gives you leverage, clarity, and options.

Understanding Illinois Transfer Taxes

Illinois can impose up to three different transfer taxes, and this is where many buyers underestimate how much location impacts their total closing costs.

State transfer tax. This tax is mandatory statewide and is typically paid by the seller. It’s calculated at $0.50 per $500 of the purchase price (or fraction thereof), which means it scales directly with how much you’re paying for the home. On higher-priced homes, this alone can add up quickly.

County transfer tax. Certain counties layer an additional transfer tax on top of the state requirement. These are also tied to the purchase price and may be paid by the seller, the buyer, or split between the two depending on local custom and what’s negotiated in the contract.

Municipal transfer tax. Some cities and towns impose their own transfer taxes, which can meaningfully increase closing costs in specific markets. This is most common in and around Chicago and its inner-ring suburbs, where city-level fees are more prevalent. Responsibility for these taxes varies by municipality and is often negotiated as part of the offer.

Each of these taxes is calculated separately, and they stack. A buyer purchasing a home in a suburb with no municipal tax may only feel the impact indirectly, while a buyer purchasing in a city with layered county and municipal taxes may see several thousand dollars added to the transaction.

That’s why location matters just as much as price. Two homes with the same purchase price can produce very different closing cost totals simply based on where they’re located—and why understanding transfer taxes early is critical when budgeting for a home purchase in Illinois. That’s why location matters just as much as price.

The Bottom Line

Closing costs in Illinois are higher than average, and they deserve real planning—not guesswork.

The biggest driver is the purchase price, followed closely by transfer taxes and lender fees. Buyers who understand those variables early tend to have smoother closings, fewer surprises, and more leverage when comparing loan options.

Once you’ve selected a lender, you’re entitled to a detailed breakdown of every mortgage‑specific charge. Pair that with guidance from a knowledgeable agent, and you’ll walk into closing knowing exactly where every dollar is going.

That’s how confident buyers close in Illinois. Schedule a call with me today or get in touch with me by completing this quick form to discuss how you can buy a home in Illinois.