Experts predict 2023 will be a strong buyer’s market. Home prices have declined by double-digit percentages in several metros. And interest rates are expected to continue rising before they stabilize. By the end of 2023, home sellers will likely have to settle for a much lower selling price.
If you are thinking about selling your house in Illinois, you should start preparing now.
📉 Illinois Home Selling Stats
- # of Homes Sold are Dropping in Illinois: The number of homes sold in Illinois has dropped 34.6% from 10,812 in Jan 2022 to 7,105 in Jan 2023.
- Mortgage Interest Rates are Still Rising: Interest rate for a 30 year fixed mortgage have more than doubled in 12 months. Currently, they are at 7.6% on March 2nd, per Rocket Mortgage.
- iBuyers are Not a Viable Option: iBuyers have either shut down or have suffered massive losses. Our analysis suggests that iBuyers will offer much less than Fair Market Value (FMV) for your home in 2023 and 2024.
- Bottom Line: In 2023, more sellers are opting to sell their homes by owner. By using best FSBO sites, you get full exposure via the MLS and save thousands in commission – negating the decline in home prices.
Sell Your House in Illinois in 7 Steps
Here are the 7 steps to selling real estate in Illinois in 2023’s slowing housing market.
Step 1: Hire a Listing Agent (or Don’t)
Gone are the days when selling your house meant interviewing several agents and finding the best one for your needs. Today, some of the best FSBO sites and tech brokerages will match you with top agents and get you listed on the MLS fast.
And they will assist you in every step of the transaction with a Realtor’s expertise paired with useful and efficient technology.
You have 4 options to sell your home in Illinois.
- List Your Home on a For Sale By Owner Website: Illinois For Sale By Owner websites allow you to leverage technology in your home sale and save thousands in agent commissions. FSBO sites will also get you listed fast, typically within 24 to 48 hours. You get to retain control of your transaction by being able to engage directly with the buyer and buyer’s agent.
- List with a Discount Real Estate Broker: The best discount real estate brokers in Illinois offer all the services that traditional Realtors do but at discounted rates. They usually charge 1.5% to 3% commissions to list your home.
- 1% Commission Realtors: Clients save thousands by working with discount brokers at 1% commission rates.
- 2% Commission Realtors: At a discount rate of 2%, they provide similar services to conventional Realtors.
- 4.5% Commission Realtors: You can get all real estate services from your agent for a low commission of 4.5%.
- List with a Full-Service Realtor: We do not recommend hiring a full-service agent. You will have to pay a hefty real estate commission of 5% to 6%, which will decrease your net proceeds significantly. However, if you need hand-holding at each step, opt for local real estate agents in your neighborhood.
- Sell Your Home to an iBuyer: An iBuyer can make a cash offer instantly and help you sell your house fast in Illinois. They make cash offers as high as 100% of the fair market value. However, iBuyers have strict purchase criteria.
✍️ Pro Tip: Sell Your Distressed Property to Cash Home Buyers
Illinois cash home buyers typically offer 50% to 70% of the property’s Fair Market Value. They majorly deal in distressed and rental properties.
» Companies That Buy Houses for Cash: Check out our rankings.
Step 2: Price Your Illinois Home for Sale
Pricing your home competitively is critical for a successful sale. It is simple to arrive at a list price. Analyze the currently active and recently sold similar listings in your neighborhood. Refine the price further to nail down the exact list price.
In a hot sellers’ market, you can price your home up to 10% more than the neighborhood prices. Whereas in a buyer’s market, set your asking price slightly lower to beat the competition.
» How to Price Your Home for Sale: See how to nail down your list price in 6 steps!
Step 3: Hire a Pro Photographer
Professional photos can greatly impact the selling process by attracting more buyers. According to VHT Studio’s Analysis, homes photographed professionally sell 32% faster.
Hire professional Illinois real estate photographers to create a portfolio of your house. A professional photographer can collate a portfolio that otherwise may not be possible if you take up the job.
Here are a few things you can do to ready your home for Illinois real estate photography:
- Declutter & Depersonalize: Tidy up your place and keep the surfaces clean – coffee tables, countertops, etc. Keep trash cans, dirty dishes, towels, etc. away. Also, remove personalized items such as photos, keepsakes, fridge magnets, etc.
- Repaint Neutral: Neutral colors appeal to a larger pool of people. This will help in attracting more buyers.
- Keep the Lights On: Use light bulbs wherever necessary. Natural light works best for photography. Ensure to keep the curtains and blinds open.
- Improve Curb Appeal: Go for clear landscapes, fresh flowers, or exquisite wall paints. Remove dead plants, trees, etc.
- Hire a Professional Home Stager: According to RESA, staged homes can sell for up to $40,000 over the list price. Also, staged homes sell 9 days faster. Professional home staging companies in Illinois will stage and prep your house for listing photographs and walkthroughs.
✍️ Pro Tip: Consider Virtual Home Staging
With virtual staging, you can get a realistically staged photograph or a video slideshow that can be uploaded with your MLS listing. And you can skip the hassle of actual home staging.
» Virtual Staging: Learn to stage your home digitally.
Step 4: List and Market Your Illinois Property
Homes listed on the Multiple Listing Service (MLS) sell faster and for 17% more. If you are working with an Illinois Realtor, they will do the MLS listing for you.
FSBO sellers can opt for a Flat Fee MLS service like Houzeo to list on the MLS. Houzeo will get you on the MLS for a small flat fee starting from $349. Your listing will be syndicated to 100+ real estate websites, giving your house the maximum exposure.
Apart from listing on the MLS, you may try some other unique ways to market your house. These may range from listing your house on Craigslist to sharing your Atlanta FSBO listings on social media.
» How to List on MLS in Illinois: Here’s how to get an MLS without a Realtor.
The listing paperwork would mainly consist of the listing agreement and the Illinois seller’s disclosure.
- Listing Agreement: A listing agreement will be signed between you and your local Illinois real estate broker. It will allow your broker to list your property on the local Illinois MLS and thereby find buyers for you as per your terms.
- Illinois Seller’s Disclosure: Illinois seller’s disclosure statement is a standard checklist form. It allows you to disclose material defects and features of the property. The seller’s disclosure provides information about the property that may negatively affect the value of the house.
Step 5: Manage Showings
Typically, Realtors host open houses or arrange private showings. If you are selling a house in Illinois by owner you can use online tools to manage showings.
- Open Houses: According to the NAR, 92% of home buyers find open houses useful. Hosting an open house is a good low-pressure way to show your home to potential buyers. You may even attract unrepresented buyers, saving the entire buyer agent commissions.
- In-person Showings: Realtors in Illinois usually bring buyers and show them the house in person. But, if you are selling a home without a Realtor, we recommend you opt for an online showings tool that will help you manage showings.
With an online showing tool, buyers, and buyer agents can request and schedule showings. For instance, with Houzeo Showings, buyers and buyer agents can choose a particular showing slot as stated by you. The tool also provides features like requesting, rescheduling, updating and canceling showings.
Step 6: Review, Compare, and Negotiate Offers
With the right marketing strategy, you should have offers coming your way for your Illinois home.
The next step would be to compare the offers. Most house sellers go with the highest bid. But here are additional factors you must weigh before settling on an offer:
- Is the buyer making a cash offer on your house?
- Has the buyer applied for a mortgage? Are they pre-approved or just pre-qualified?
- Is the buyer willing to waive off some contingencies like home appraisal?
- Are buyers offering to negotiate the closing costs?
Keep these questions in mind when comparing offers. Typically, real estate brokers do such negotiations for you. As a For Sale By Owner seller, you can use offer management tools like Houzeo Offers. With Houzeo Offers you can make counter offers, call for the best offer, and a lot more.
» Highest and Best Offer: Is it a smart move in multiple offer situations?
Step 7: Close the Sale
Designated settlement agents handle the closing process in different states. Usually, an escrow agent, a real estate attorney, or a title company acts as a closing agent.
The closing process mainly consists of you completing the documentation, and paying the home-selling taxes and closing costs in Illinois.
Documents Needed to Sell a House in Illinois
Some mandatory documents needed to make a successful real estate transaction in Illinois are as follows:
- The HUD-1 or Closing Disclosure: A closing disclosure contains a summary of all the detailed costs for homes purchased with a mortgage. If you accept an all-cash offer, you may get the HUD-1, which is less common. These documents detail the amounts you’re charged for, your loan payoffs, and the net proceeds you will take to the bank.
- The Deed: It enables the legal transfer of title from the seller to the buyer. Read this document carefully to verify the legal description of the property, the deed book, and the Property Identification Number, if any.
- Settlement Statement: This statement summarizes all the expenses involved in the transaction. These expenses are usually split into whether they have been paid before closing or are due at the time of closing.
- Certificate of Title: It allows you to state that you have the right to sell your property.
- Two Forms of Official ID: A licensed notary will likely be involved in the closing process and will require you to swear on your identity. During the process, you will be required to furnish identity proof (like a passport, driving license, etc.). The closing process might also require you to produce secondary identity proof.
» Paperwork for Selling a House: Everything you need to know.
Taxes on Selling a House in Illinois
You will very likely pay the following taxes while selling your house in Illinois:
- Capital Gains Tax: You become liable to pay the capital gain tax if you sell your home in Illinois for a profit. It is an expense you pay for an asset whose value has increased over time.
- Transfer Tax: Transfer tax is a one-time fee (generally costs less than 1%) that sellers pay at the time of transferring the ownership between the two parties. You need to pay this tax to the local government body in your area.
- Property Tax: Property tax varies by county, but you will pay approximately 1% of the total home sale value to the government as property tax. You can claim a rebate if you have paid your property tax a year in advance. If you have not paid the tax, then you need to pay the pending amount.
Closing Costs for Seller in Illinois
Seller and buyers both pay separate closing costs at closing. Seller closing costs in Illinois usually consist of HOA fees, escrow fees, real estate attorney fees, and home warranty fees.
Additionally, you need to pay the commissions for both the listing as well as the buyer agent, which is around 5% to 6%. If you offer seller concessions, then you might cover some buyer’s closing costs in Illinois as well.
» Illinois Seller Closing Costs Calculator: Estimate your closing cost of selling a house in Illinois.
Bonus Tip: Avoid Agent Matching Services
Agent-matching services, like Clever Real Estate and Ideal Agent, advertise themselves as “free”. In reality, they will charge you 33% to 40% of the commission. So if you pay your agent 1.5% commission, the agent only gets 1% and Clever Real Estate retains 0.5%.
The company disguises this fee as a “Referral Fee” or a “Service Fee”. Clever also ensures that this fee is not disclosed to you on your settlement statement.
» Clever Real Estate Reviews: Read our full review of Clever Real Estate and the legal perils of agent-matching services.
Selling a Home in Illinois FAQs
1. What are typical closing costs for sellers in Illinois?
Home sellers in Illinois typically pay closing costs like HOA fees, escrow fees, real estate attorney fees, and home warranty fees.
2. Do I have to pay taxes if I sell my house in Illinois?
Yes, you have to pay taxes like Capital Gains Tax, Transfer Tax, and Property Tax while selling your house in Illinois.
3. Is it the best time to sell a house in Illinois?
Mortgage rates are set to rise in 2023. As a result, home prices will decline and you may have to settle for less than the asking prices. So, if you are ready to sell your house in Illinois, now is the best time to start. We recommend you research the best time to sell a house in Illinois to maximize your net proceeds.
4. Can you sell a house while in probate in Illinois?
Yes, you can sell an inherited house in Illinois in probate. You must provide Petition for Order Authorizing the Sale of Real Property, a copy of the sales contract, a broker letter, etc. in front of the court. Upon approval of the documents, the court issues an order approving the sale.
5. How to sell a house by owner in Illinois?
You can sell a house by owner in Illinois by listing your house on FSBO sites like Zillow, and Craigslist. We recommend hiring an Illinois Flat Fee MLS service to list on the MLS. This ensures your house gets maximum exposure, and you attract more offers.
The Bottom Line
Selling a house in Illinois can be daunting if you do not find the right real estate agent. But, hiring a real estate agent will cost you a 3% commission.
If you are looking to save thousands in Illinois real estate commission, sell your house with Houzeo.com. Houzeo real estate is a tech-centric For Sale By Owner website and real estate platform that gives you access to tools only real estate agents have. Here’s how Houzeo works to maximize your savings and exposure.
Eager to Know More?
We’ve got you covered. Check out the following video to understand why Houzeo is one of the best for sale by owner websites in the U.S.
What is Houzeo?
An overview of what the platform is all about
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why it is one of the best FSBO sites in America.
Sell a Home in Illinois Near Me
Click on your respective county/city to understand the process of selling a house in your area:
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