Selling a House in Chicago, IL: A Guide For Sellers

Illinois home values increased by 13.0% between Q1 2021 – Q1 2022. But, due to rising mortgage rates, real estate prices in the Midwest may decline in 2022 and 2023. If you are planning on selling a house in Chicago, IL, it is best to do it now. The Chicago real estate housing market saw a formidable growth in home prices from Q1 2021 – Q1 2022.

1. When is the Best Time to Sell a House in Chicago, IL?

The home-buying season in Chicago, IL starts in late spring and runs throughout the summer, peaking in March and April. It is the best month to sell a house in Chicago, IL. To make the best of this magic window, list your home in February. This way, you can get more than $3,000 than the average value.

21% of the homes are listed on a Thursday as they sell quickly and are more likely to sell above the list price.

So the best time of year to sell a home in Chicago, IL is March and April on a Thursday. Other factors like holidays, the start of school, etc. should also be considered.

Is it a Good Time to Sell a House in Chicago, IL?

Yes. Never try to time the market – in the long term, that’s a difficult strategy.

Mortgage rates are on the rise and home prices are expected to cool down in 2022 & 2023. Real estate commissions are declining. So, if you’re ready to sell your Chicago, IL home, list now.

» Best Time to Sell a House in Chicago, IL: An Insight on the Best Time to Sell a House in Chicago, IL.

2. How Do I Price My Home Competitively?

Pricing your home competitively is critical to a successful sale. The good part is it is simple to arrive at a list price. An analysis of the currently active and recently sold similar Illinois real estate listings in your neighborhood will get you close. And you can refine the price further to nail down the exact list price.

In a hot sellers’ market like Chicago, IL you can price your home up to 10% more than the neighborhood prices because of limited inventory and competing buyers.

In a buyer’s market, you need to set your list price slightly lower than the competition as there will be more homes for sale and lesser buyers.

REMEMBER! The purpose of the LIST PRICE is to ATTRACT BUYERS to your listing. It’s not your SALE PRICE!!!

What happens if you under-price or over-price your listing?

If you price it too low	You will get multiple offers. You’ll likely call for “Highest & Best Offer” or counter the best offers. And you will sell at market price.
If you price it too high	You will get little traffic. It’ll make you drop the price, and you will sell at the market price.

Real estate agents create a Comparative Market Analysis (CMA) to determine an ideal listing price. If you are opting to sell your house on your own then you can easily create your CMA and understand how to sell a house by owner in Chicago, IL works.

» How to Price Your Home For Sale: Learn to Price Effectively in 6 Steps

3. How to Sell a House in Chicago, IL?

You have several options to sell your house in Chicago, IL. For most sellers, we’ve compiled the best ones below:

3.1. Sell Your Chicago, IL Home For Sale By Owner

For Sale By Owner (FSBO) is a DIY method of selling property without any third-party help. This means that there is no seller agent involved in the process.

By selling FSBO in Chicago, IL though you save up on the listing agent commission, you have to handle everything – from listing to closing – on your own.

✍️ Note: Though the seller will save on listing agent commission, buyer agent commission will still have to be taken care of unless you find an unrepresented buyer.

» Best FSBO Sites: Check out the best For Sale By Owner websites in 2022!

🚩 Key Downsides of Selling Your Home in Chicago, IL For Sale By Owner:

• No MLS Exposure: MLS is the most important tool an agent has. Selling FSBO means limited exposure, so there will be less competition for your property. That will likely reduce the selling price. One study found that homes on the MLS sold for 17% more than homes, not on the MLS.
• No Help If You Need It: If you need help with paperwork, inspections, negotiations, or closing, you’re on your own as a For Sale By Owner.

3.2. List With a Traditional Full-Service Agent

A full-service Realtor will handle everything for you – right from listing to closing. But you’ll be paying a full 2.5% to 3% listing agent commission.

In the traditional sense, a seller has to pay 3% of the sale price to the listing agent and 3% to the buyer agent. And even if you find an unrepresented buyer, you’re still on the hook for the full listing agent commission.

🚩 Key Downsides of Listing With a Traditional Full-Service Agent:

• Hefty Commissions Will Cost You Thousands: Average real estate agent commission in Chicago, IL is 2.56% to 6%. That’s thousands of dollars of fees in commissions.
• Limited Control Over Your Sale: Everything will go through an agent. That reduces the risk that you will do something wrong, but will also limit the control you have over your transaction. For almost everything, including if a counteroffer was submitted, the status of your closing, and how many showings you’ve had, you’ll have to reach out to your agent.
• Slow & Manual Process: Most real estate agents in Illinois do things manually. A simple price change is several steps – the agent has to talk to you over the phone, create a price amendment, get you to sign it, then sign it, and only then can they update the price on the MLS.

3.3. Best Option: FSBO with a Flat Fee MLS Listing

The average Realtor commission in Chicago, IL is around $14,011 (based on the median home value in Chicago, IL). Listing with a high-tech website like Houzeo.com saves you the listing agent commission. In addition, it gets you maximum exposure to the MLS and provides help whenever you need it.

✅ A Flat Fee MLS Listing Service Combines the Best of Both Worlds:

• Save Thousands in Commission: Instead of paying a 5% to 6% listing agent commission, you just pay a $340 listing fee.
• Maximum Exposure: You get full exposure to the MLS, Zillow, Realtor.com, Redfin, and hundreds of other websites.
• Help When You Need it: Services like Houzeo.com offer the “Contract to Close Coaching Package”. So if you need help during the transaction at any time, a licensed broker is there to help you sell!
• Full Control Over Your Sale: You retain full control over when to sell and who to sell. Houzeo captures all leads and displays them on your dashboard. All offers and showings are summarized online, along with the buyer’s or their agent’s contact info. It doesn’t get easier.
• Fast Listing & Changes: Houzeo is 100% online, and allows you to request changes instantly. Contracts are auto-generated, and turn-around times are fast!
• A-la-carte Options: Need a yard sign, ShowingTime, lockbox? You can purchase them easily from your Houzeo dashboard!

Best Flat Fee MLS Listing Company In Chicago, IL

» Flat Fee MLS Chicago, IL: Research The Best Flat Fee MLS Companies In Chicago, IL.

How do I Sell My House Fast in Chicago, IL?

Here are three options to sell your house fast in Chicago, IL:

1.	Selling Home As Is in Chicago, IL	Selling a house “as is” means that you sell without any upgrades or repairs. An example could be wholesaling real estate. This technique can help homeowners save some money. » Selling a House As Is in Chicago, IL: A Comprehensive Guide for The People of Chicago, IL.
2.	Selling Your House for Cash	Sellers who are in desperate need of money usually prefer cash companies to sell their houses. Though the process is quick, a home seller might end up having less money than the market price of the property. » Companies that Buy Houses for Cash in Illinois: Discover Best Cash Home Buyers in Illinois.
3.	Offering Your House to a Flipper	Home flippers in real estate are buyers that buy a property in its existing condition, repair it, and sell it at a higher price. Selling your house to a flipper will help you save both time and dollars. » How to Flip a House: An Introductory Guide for Beginners

» How to Sell My House Fast Chicago, IL: Know How to Sell Your House Fast in Chicago, IL and for the Most Cash!

✍️ Pro Tip: Consider selling your Chicago, IL home to an iBuyer

iBuyers are companies that will buy your home for cash outright and close quickly.

» iBuyers Reviews: Selling Your House for Cash in 2022

4. How to Prepare and Market Your Home for Sale?

A clean and well-prepared home combined with the correct marketing strategy can help you attract a large number of buyers.

4.1. Getting Chicago, IL Homes Ready to Sell

Preparing your house for showings is the best way to increase the chances of selling it fast. Some standard preparation pointers can be taken care of while selling your home in Chicago, IL. These are:

• Declutter & Depersonalize: Tidy up your place and remove the element of personalization. This means removing personalized items such as photos. It will allow potential buyers to visualize their future in the house.
• Make Repairs: If there’s anything glaringly wrong, take care of it early. For instance, a squeaky doorknob will not be overlooked by potential buyers. It is best to get such defects fixed.
• Repaint Neutral: Paint your house in neutral colors, as it appeals to a larger pool of people. This will help in attracting more buyers.
• Improve Curb Appeal: Go for clear landscapes, fresh flowers, or exquisite paintings because the first impression is everything!
• Implement Staging: The best way to sell a property is by hiring a staging professional. They would be able to utilize the spaces and furniture cleanly and attractively. Staging costs in Chicago, IL vary across cities and counties.

4.2. Powerful Ways to Market Your Home in Chicago, IL

Almost 95% of home buyers search and review homes online. So, being online is the #1 priority for the sellers. A good online marketing strategy combined with other marketing tactics can make a difference in getting your house sold.

Here are some powerful ways of marketing your home when for sale in Chicago, IL:

#	Marketing Tactics	Description
1.	List on the MLS	Homes listed on the MLS sell faster and for 17% more. This doesn’t mean you need to hire a listing agent and pay that extra commission on selling a house in Chicago, IL. You can work with discount real estate brokers in Chicago to get MLS access. A Flat Fee MLS Company like Houzeo can be a very good option to list your home in Chicago, IL. Houzeo will help you save the hefty Realtor commission and get your property maximum exposure. All of this, just for a small flat fee! ✍️ Pro Tip: Research the best For Sale By Owner websites to sell your house FSBO
2.	Get a Yard Sign	Opting for a yard sign can be a good investment when selling real estate in Chicago, IL. It can help in attracting buyers from the neighborhood. On a crowded street, an attractive yard sign can drive the attention of potential buyers. Houzeo’s yard sign can help you with this. Houzeo custom yard sign comes FREE with a selfie and it is available for $49 only! ✍️ Pro Tip: If you secure a buyer from a yard sign, chances are you’ll save on the buyer agent commission as well. In a nutshell, it is worth the $49 investment. » For Sale By Owner Yard Signs: Check out the 7 best FSBO Yard Signs!
3.	Share Your Listing on Social Media	Share your property listing on social media. This will include your contact info apart from the listing details. If you share your listing on Zillow or Redfin, all the leads your listing generates will be sold to buyer agents who’ll demand a competitive buyer agent commission. Houzeo, on the other hand, doesn’t sell your information or leads. All buyer leads see your contact info, so you might save on the buyer agent commission. ✍️ Pro Tip: If you secure a buyer from social sharing, chances are you’ll save on the buyer agent commission as well.
4.	Hire a Professional Photographer	As a seller, you can hire a professional photographer to create a portfolio of your house. Professional pictures can greatly impact the selling process by attracting more buyers. In Chicago, the charges for a real estate photo shoot start at $266 for a one hour photo shoot. ✍️ Pro Tip: A professional photographer can collate a portfolio that otherwise may not be possible if you take up the job. » Real Estate Photography: Create Your Best Listing Photos
5.	List on Craigslist	Craigslist is still the biggest classified ad platform. And it’s still effective today. Here’s how to sell a house on Craigslist.

» Creative Ways To Market Your House For Sale: Discover Unique Tactics of Marketing Your House

5. Manage Showings and Offer Negotiations

Once you have prepared your house for sale in Chicago, IL, showing it to buyers is the next step.

5.1. How to Manage Showings When Selling a House in Chicago, IL?

Once your property is ready for showings, it is critical to manage the showings effectively. You can either opt for online showing tools or host an open house.

Online Showing Tools

Online showing tools provide home buyers and buyer agents with a frictionless way to request and schedule showings.

Houzeo Showings, a cutting-edge solution by Houzeo, helps buyers and buyer agents choose a particular showing slot as stated by the seller. The tool also provides features like rescheduling, updating, canceling, requesting, and more.

Houzeo Showings: How it Works

#	Feature	Description
1.	Set Your Showing Calendar	Buyers and buyer agents should only be shown times when the property is available for showing. This saves time for all the concerned parties.
2.	Buyers can Request & Reschedule Showings	Make sure that buyers and buyer agents can request showings at available times. In addition, they should be able to reschedule and cancel on an ad-hoc basis.
3.	Receive Feedback	Feedback from buyers and buyer agents is critical for home sellers because it allows them to assess their property (priced too high, the backyard needs fencing, rooms need whitewashing, and more). Where the feedback is actionable, small remedies can go a long way in improving showings and attracting top dollar for your property.

🗓️ Houzeo Showings: See how the most powerful showing app works on mobile and web

Hosting Open Houses

92% of home buyers find open houses useful. If your house is located in a hot seller’s market like Chicago then more buyers would be interested in buying them. In such cases hosting an open house would be more feasible.

Here are a few things to keep in mind when hosting an open house in Chicago, IL:

1.	Ensure Your House is Ready	Buyers would not want to see a house with a leaky roof or broken doorknobs. Thus make sure you have fixed all the defects and made all the necessary repairs beforehand.
2.	Choose a Correct Time	People are busy on weekdays. Thus hosting an open house on weekends, preferably a Sunday, would be best. Also, you need to take care of the time of day. Usually, afternoons are the ideal choice.
3.	Post Open House Online	93% of buyers rely on the internet for their home searches. Thus, posting online will make potential buyers aware of the open house. You can also list your open house on the local MLS, and real estate websites like Zillow & Trulia, Facebook, etc.
4.	Give Visitors Their Space	During the open house, you might want to stay away from the property. This would give them the desired space to explore at their convenience. Also, it will help them in visualizing their future in the house.
5.	Get Your Neighbors Involved	You can invite your neighbors to the open house. Even if they may not be interested in purchasing your Chicago home, they would spread the word.

✍️ Pro Tip: You might attract unrepresented buyers, saving you the entire buyer agent commission.

5.2. How do I Negotiate Offers When Selling a House in Chicago, IL?

A counteroffer and requesting the best and highest offers are the two crucial negotiation methods. Negotiating offers also means focusing on other factors like contingencies, concessions, responsibility, and more.

#	Advanced Tactic	When to Use	How to Use
1.	Counter an Offer	Single or Multiple Offer Situation	Your best offer is not just the highest one but is also competitive across several parameters: deposit, financing, inspection contingency, closing timeline, etc. When you want to counter an offer, you can request any of the mentioned parameters updated as per your preferences. ▶️ Learn more: How to counter an offer on Houzeo
2.	Request Highest & Best Offers	Multiple Offer Situation	If you have multiple offers and a timeline by which you’d like to pick an offer, you can call for Highest & Best offer from all the interested parties. ▶️ Learn more: How to request Highest & Best Offer on Houzeo

Most of the best Illinois real estate brokers or brokerages will give you complex forms to counter an offer, or to request the highest & best one. Houzeo has digitized these, so, you can counter or ask for the highest & best with just a few clicks!

6. What Chicago, IL Real Estate Documents do I Need?

A lot of paperwork is needed to sell a home in Chicago, IL. Though your Realtor takes care of all the paperwork on your behalf, you need to be aware of them.

6.1. Chicago, IL Home Seller Disclosure Requirements

Chicago real estate disclosure law is governed by the Illinois Division of Real Estate. It mandates all home sellers to complete certain documents and submit a copy to any prospective buyer before execution of the sale deed. The first and main document involved is the Chicago, IL Residential Real Property Disclosure Report. Another fairly important document that is advised is the Chicago Residential Real Estate Purchase and Sale Contract.

Here is a list of Chicago, IL real estate disclosures you need:

• Chicago Residential Real Property Disclosure Report: It is the document that is used in Chicago, IL to disclose all the details about the property. This could incorporate the structural information, appliances, any defects, deaths (in the last 3 years) on the property, and more.
• Chicago Residential Real Estate Purchase and Sale Contract: The Secondary document for all the standard real estate transactions stating the conditions of the purchase and the property.
• Natural Hazard Disclosure Statement: The document should be filled out and submitted before the sale. The document is a questionnaire on that is the property located in a flood hazard area. or earthquake fault zone? and any other hazardous area.
• Carbon Monoxide Detector Disclosure: Paragraph 7B(1) of the RPA states that the seller will install carbon monoxide detectors if “required by law.” However, sellers need to provide this only if they are providing TDS as well.
• Additional Requirements: Fill out the Chicago, IL seller’s disclosure notice before listing your property. The disclosure document walks through various sections, asking you questions about various features of your house. Disclose all the known problems in your house upfront. You have to fill out designated sections on smoke detectors, the flooding history of the property, and termite inspections. Apart from the Chicago, IL sellers disclosure notice, fill out the federal lead-based paint disclosure if your house was built before 1978.

» Illinois Seller’s Disclosure: A Guide to Know the Seller Disclosure Requirements in Illinois.

6.2. Mandatory Documents for Chicago, IL Real Estate Transactions

Review these documents at length and understand their provisions. Here are some key documents you’ll likely need in the process of selling a house in Chicago, IL:

• The HUD-1 or Closing Disclosure: When homes are purchased with a mortgage, you’ll summarize the detailed costs in the Closing Disclosure. If your sale is all cash, you may get the HUD-1, which is less common. These documents detail the amounts you’re charged for, your loan payoffs if any, and the net proceeds you will take to the bank.
• Real Estate Purchase Agreement: It is a standard form of real estate contract that details the terms of transactions. It contains aspects such as sale price, financing contingencies, property description, etc.
• The Deed: This document enables the legal transfer of title from the seller to the buyer. Read this document carefully, verifying all details including the legal description of the property, the deed book, the deed book page, and the Property Identification Number (PIN), if any.
• Bill of Sale: Information about the seller and the buyer with the selling price. This is important as part of the process of selling real estate in Chicago, IL because it contains all the base information about the property.
• Statement of Closing Costs: This statement summarizes all the expenses involved in the transaction. The document is not complicated and can easily be taken care of.
• Certificate of Title: It allows you to state that you have the right to sell the property.

6.3. Possible Additional Documents for Chicago, IL Real Estate Transactions

Some additional documents that may require during the closing process in Chicago, IL are:

• Loan Payoff: You need to provide proper documentation if the disbursement of the loan amount has been completed. Else, you need to provide how much you still owe.
• HOA Forms: If the house is part of an HOA, the seller needs to give the buyer all the documentation on restrictions, fees, financials, and more.
• Survey Papers: The documentation defines the location and the dimensions of the property. This is important while selling your own home.
• Repairing Proof: While selling a property in Chicago, IL, if the seller has made repairs to the property before the sale, they need to furnish the relevant documentation.
• Power of Attorney: If the property is inherited, then the seller needs to furnish the details of the history and how the property was passed onto him/her.
• Home Inspection Report: This contains all the details about the inspection of the property.
• Home Warranty Papers: It contains all the coverage of the property, period, and cost of insurance
• Correction Agreement: In case there are any errors in the documentation, you may be required to correct those errors.
• Title Affidavits: It is a notarized document that verifies that a seller is the owner of the house, there are no liens, and there is no simultaneous purchase deal.

Bring TWO Forms of Official ID

There will likely be a licensed notary involved in the closing process who’ll require you to swear on your identity. You would be required to furnish identity proof (like a passport, driving license, or any other authorized document) during the process. However, the closing process might also require you to produce secondary identity proof.

7. How to Close Your Chicago, IL Home?

The closing process in Chicago, IL is handled by Title Companies, Escrow companies or, Individual Closing Agents. Your Realtor and settlement agents usually handle the legalities. But you still need to be prepared for a few things while closing on a house in Chicago, IL.

7.1. Title, Appraisal, and Inspection

• Title: A clear title and a meticulous transfer are key to a real estate transaction. The title insurance protects you if there is any problem related to the prior ownership of the property. It makes you whole in case of a legal dispute related to the title.
• Appraisal: An appraiser does market research and evaluates the price of a specific property. The appraiser ensures that a correct price is offered by the seller and as per the market value.
• Inspection: An inspector inspects the property before the home-buying process is completed. They check for any defects/repairs in the property and raise concerns accordingly. This ensures that the buyers don’t have to shell out money in case there are defects in the property which the seller did not highlight.

» Title Insurance in Chicago: Know More About The Title Insurance in Chicago, IL.

7.2. Overall Cost of Selling a House in Chicago, IL

It should be noted that Realtor commission and sale price are not the only two things that are involved. There are multiple costs to selling a house in Chicago, IL that should be known to a seller and is crucial for a sale.

Here’s a list to get you started:

• Agent Commission: While selling a house in Chicago, IL, you will interact with represented buyers. Buyer agent commission in Chicago is approximately 2.56% on average.
• Title Insurance: It helps sellers/buyers from any legalities if there is a flaw in the ownership of the property. Either seller or buyer can pay the title insurance fee based on the negotiations.
• Title Fee: In Chicago, IL, the seller needs to pay the title fee to prove rightful ownership of the property. Title fees in Chicago, IL costs approximately 0.15% of your home’s sale price.
• Transfer Tax: It is charged based on the property’s sale price. In Chicago, IL, transfer tax is at the rate of $5.25 per $500 of property value.
• Transfer Fee: If the seller relocates, there may be a transfer fee involved. The amount depends on the city or county.
• Escrow Fee: An escrow agent/company handles the closing process in Chicago, IL. Escrow agents generally hold the concerned property in trust till all the negotiations, inspections, legal work, and closing processes are not completed. The escrow fee is thus to compensate the escrow agent for the services provided.
• Notary fee: It is mandatory to pay the notary for completing important paperwork related to the transaction.
• Closing Cost concession: The buyers may ask the seller to pay for their closing costs as well. It depends upon the seller to accept/reject the offer. If the seller accepts it, the closing concession ranges between 2%-3% of the property value.
• Natural Hazard Disclosure Report: Making reports for disclosing natural hazards can cost between $50-$150.
• Capital Gains Tax: This tax is a difference amount between the price for which a property was bought and the current sale price.
• Home Inspection fee: The fee costs around $375-$550. Though paying for a home inspection is not necessary but it is very common in IL. Bad inspection results may lead to extra charges for the seller.
• Lien release fee: A lien release document proves that all of your property debts are clear. The seller needs to pay for making a lien release document.
• HOA Fee: Seller has to pay for HOA documentation and registration of the buyer. It applies only if the property has an HOA. If it does, the fee is under $1000.
• Home Warranty: It can cost between $30-$60 per month in Chicago. The seller has to pay for a home warranty only if any home appliances (water heater, air conditioner, fans, etc.) require attention. This amount will benefit buyers if any of these appliances break down later.

» Closing Costs in Illinois: Know the Exact Estimates.

7.3. Who Pays Closing Costs in Chicago, IL?

Various closing costs are involved when selling a house in Chicago, IL. Most of them are customarily paid by sellers whereas a few of them can be negotiated.

Closing Costs	Seller Responsibility
Realtor Commission	Realtor fees for the seller in Chicago, IL is around 2.5% to 6%
Escrow Fees	Buyer and Seller pay their own
Title Insurance	Negotiable between buyer and the seller
Survey Fees	Usually, the home sellers pay
Home Warranty Fee	Sellers pay the home warranty fee
Home Inspection Fee	Home Buyers pay usually
Appraisal Fee	Buyers pay for a home appraisal

7.4. How Much are Closing Costs in Chicago, IL?

The amount of money you will spend on closings while selling a property in Chicago, IL depends on a lot of factors such as Realtors commissions, fees & taxes, mortgage payoff, etc.

You can calculate seller closing costs in Chicago, IL with Houzeo’s Advanced Seller Closing Cost Calculator for Chicago, IL. The calculations are based on the latest prices and it gives you a very detailed estimate of all the costs involved in the transaction.

» Real Estate Commissions in Illinois: Everything You Want to Know About Commission Rates in Illinois.

Final Word: Selling a House in Chicago, IL

Selling a house in Chicago, IL is complex.

You have different processes like pricing, marketing, paperwork, and negotiations, to deal with. This combined with a hefty seller agent commission in Chicago makes the process expensive.

A good option for the sellers is opting for Flat Fee MLS or FSBO platforms like Houzeo. Houzeo makes the job of the sellers much easier. Not only putting the properties on the MLS, but these platforms also provide a la carte services that can help the sellers go the extra mile.

» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.

Frequently Asked Questions

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