There's a moment at the closing table when someone slides a sheet of paper across and you realize the price you fell in love with was never the whole number. Nobody hid anything. It's just that nobody walked you through it.
Here are the five line items that catch first-time buyers in Chicago and the suburbs off guard, and what to plan for with each one. Read this before you write your first offer.
1. Your attorney, not just your agent
In the Chicago area, almost every residential deal has a real estate attorney on each side. The standard Illinois purchase contract includes an attorney review period right after your offer is accepted, and your attorney handles title, the closing documents and the final numbers.
Most residential attorneys charge a flat fee. Line one up before you make an offer, so the review period doesn't start without anyone reading the contract for you. We're happy to share names our clients have used.
2. The inspection is on you, and it's paid up front
The general home inspection is paid by the buyer, usually on the day of the inspection, weeks before you own anything. Depending on the property, you may also want specialty follow-ups:
- Sewer scope: common for older Chicago homes and two-flats, where clay or cast-iron lines are typical.
- Radon test: worth doing in Illinois, especially for homes with basements or garden units.
- Chimney, roof or structural checks: if the general inspector flags something.
These are out-of-pocket costs that don't get rolled into your loan, so keep cash set aside for them.
3. Transfer taxes add up fast, especially in Chicago
When a property changes hands in Illinois, the state, the county and many municipalities each charge a transfer tax. Who pays what is set by local ordinance and custom:
- Illinois: $0.50 per $500 of the price, customarily paid by the seller.
- Cook County: $0.25 per $500, customarily paid by the seller.
- City of Chicago: $5.25 per $500 in total. The buyer pays $3.75 per $500 and the seller pays the $1.50 CTA portion.
That Chicago buyer share is the one people miss. On a $400,000 home it comes to $3,000, paid at closing. Many suburbs have their own transfer taxes and stamp rules too, and some put part of the cost on the buyer. Ask early, and have your attorney confirm the current rates for your town.
4. Property taxes are paid backwards
Illinois property taxes are billed a year in arrears. In Cook County, the taxes for 2025 are paid in two installments during 2026. So when you close, the seller still owes taxes for the time they've owned the home this year, and maybe last year too.
Those unpaid taxes are settled as a credit to the buyer at closing. Because the real bill doesn't exist yet, the credit is an estimate, often based on 100% to 105% of the most recent full-year bill. Then you pay the actual bill when it arrives. The credit often won't match what you were expecting, so look at the seller's last two tax bills before you write your offer. Also check that the Homeowner Exemption is applied to the property once you move in.
5. Escrow needs a cushion
If your lender escrows taxes and insurance, it will collect an initial escrow deposit at closing. That's usually several months of property taxes plus homeowners insurance, and federal rules let the lender hold up to a two-month cushion on top. Your first year of homeowners insurance is usually paid at or before closing as well.
This money lands on top of your down payment. It isn't a fee, because it's your money held for future bills, but it still has to be in your account on closing day.
The bottom line
None of these costs are scary once you see them coming. All of them are scary in week six. Before you make an offer, ask your lender for a Loan Estimate and ask your agent for a full net sheet that includes the attorney, inspections, your share of transfer tax and the escrow deposit.
Want your actual numbers for a specific home? Book a 15-minute call or call us at (773) 985-7153. We'll walk through every line from offer to keys before you spend a dollar. You can also read our Buyer's Guide, check prices in your neighborhood in the monthly market report, or register for off-market homes.
This article is general information, not legal or tax advice. Rates and customs change and vary by municipality. Your attorney and lender will give you the exact figures for your purchase.
