Selling a House in Chicago, IL? Here Are 7 Steps to Get Top Dollar in 2024

If you’re considering selling your house in Chicago, there’s no better time than now. Home prices have risen 6.5% Y-O-Y, bringing the average to $363,000. In July 2024 alone, 2,497 homes were sold — 6.1% more than the previous year.

But the benefits don’t stop at higher prices. The NAR Settlement has made the traditional 2.5% to 3% buyer agent fee negotiable. This will increase your net sale proceeds, keeping more equity in your pocket.

Selling a House in Chicago: 7 Easy Steps

From pricing to staging and negotiating, every step is crucial when selling a house. Here’s a 7-step guide you can follow:

Step 1: Assess Your Property’s Condition

Issues like dripping faucets or foundation cracks can be a major turn-off for potential buyers. Conduct a pre-listing inspection to identify areas for improvement. A home inspection in Illinoiswill cost you between $325 and $425.

Step 2: Price Your Home Competitively

18.3% of sellers dropped the asking price for their IL homes in August 2024. Inaccurate pricing led to increased days on market and potentially cost the sellers a few good offers.

Here’s how you should price your home based on market conditions when selling your Chicago house:

• Seller’s Market: Price your home up to 10% more than its market value to capitalize on the limited inventory.
• Buyer’s Market: Lower your asking price to beat the competition.

In the current buyer’s market, price your home slightly below Fair Market Value to attract more offers. You can also calculate your home’s worth using free online tools or get a CMA report.

Step 3: Choose How to Sell Your Home

There are 4 options you can consider when selling your house in Chicago:

• List With a Discount Real Estate Broker: They are real estate professionals who offer the same services as traditional agents but for a lower fee. Discount real estate brokers in Chicago charge between 0.5% to 2% as fees.
• List With a Full-Service Realtor: They are real estate agents or brokerages that offer comprehensive services, including marketing, negotiation, closing assistance, etc. However, they charge a 5% to 6% commission.
• Sell to Cash Buyer Companies: A cash buyer in Chicago is the best way to sell your Chicago home fast. But you may get only 30% to 70% of your home’s fair market value. iBuyers offer a fast-selling process and can make instant cash offers as high as 70% of your home’s FMV.
• List Your Home on the MLS: You can get your home on the market typically for $399. With Chicago Flat Fee MLS companies like Houzeo, your home will be on top real estate websites like Redfin and Trulia, giving it maximum exposure.

Step 4: Make Your Home Market-Ready

A visually appealing home increases buyer interest as it helps them imagine their future in that space. Here’s what you can do to create a market-ready home:

• Stage Your Home: Home staging can help you get up to $40,000 over the listing price when selling your Chicago home. That’s huge! Hire a home stager to create a great first impression.
• Invest in Professional Photography: Hire Chicago real estate photographers to showcase your home’s best features and attract potential buyers.
• Conduct Virtual Tours: You can provide virtual home tours to potential buyers. This will allow them to explore the property, generating more interest.
• Adjust Your Price: Analyze local market trends closely and modify your listing price accordingly. This will help you attract offers quickly.

Step 5: Market Your Property Effectively

Not marketing your home enough can lead to increased days on the market. Here are some strategies you should consider:

• Host Open Houses: 92% of home buyers find an open house useful. Hosting an open house is an effective way to show your home to potential buyers.
• Craft a Captivating Property Description: A catchy headline with an engaging statement can grab a buyer’s attention. Use popular adjectives like flawless, spacious, open-concept, etc.
• Add a Yard Sign: 20% of sellers use yard signs to advertise their property. In fact, 48% of buyers found their homes because of these signs. FSBO yard signs usually feature your name, contact details, and property description.

Step 6: Review and Negotiate Offers

The next step when selling a house would be to compare the various offers you get. Most home sellers go with the highest bid. But here are some factors you must consider before finalizing an offer:

• Is the buyer making a cash offer on your house?
• Has the buyer applied for a mortgage? Are they pre-approved or pre-qualified?
• Is the buyer willing to waive off some contingencies like home appraisal?

Step 7: Close the Deal

Real estate attorneys or Chicago title companies act as closing agents when selling a house in Chicago.

7.1: Pay Taxes and Closing Costs:

• Transfer Tax: You need to pay a one-time fee when transferring ownership. The transfer tax generally costs less than 1%.

• Property Tax: You are charged approximately 1% of the total home sale value. It can vary by county. You can also claim a rebate if you have paid your property tax a year in advance.

• Closing Costs: You and the buyer pay separate closing costs. Seller closing costs in Chicago include HOA, real estate attorney, and home warranty fees.

7.2: Sign the Documents Needed to Close a Sale in Chicago:

To transfer ownership to the buyer, you must sign the escrow paperwork, title deed, and other documents.

Once the formalities are complete, the buyer transfers all the funds to the escrow, and the escrow company transfers the funds to you. The process is officially concluded when the buyer’s name is registered in the public record.

What Will Be Your Net Proceeds?

Your net proceeds depend on factors like the final sale price, closing costs, agent commissions, and taxes. Knowing your expected profit is crucial for effective financial planning.

With a median home price of $363,000 and mortgage rates trending downward, many Chicago sellers are getting competitive offers, often above the listing price. If you opt for a Flat Fee MLS service like Houzeo, you can increase your profit even more by avoiding the 3% listing agent commission.

NAR Settlement Saves Sellers Thousands in Commission

The NAR Settlement went into effect on August 17, 2024. Buyer agent commissions can no longer be offered on the MLS. This means sellers will save thousands! But it also means there’s a lot more compliance and litigation risks.

Here’s what this means for you:

• Sellers Can Save Thousands in Commissions: You will likely pay much less than the traditional 3% buyer agent commission. That’s because buyer agent commissions will be negotiated twice: Once when buyers engage buyer agents, and again when sellers review offer contracts.
• Seller Priority #1 Will Be Paperwork (to Mitigate Compliance & Litigation Risks): Buyer agents mitigate all types of risks. From seller disclosures, offer contracts, contingencies, inspections, repair requests, appraisal, and closing – Buyer agents keep the paperwork tight. Their state licensing authorities, Realtor associations, and MLS’ audit paperwork compliance. Without buyer agents, sellers will have to learn and adapt. Or risk expensive litigation.
• Negotiations Can Now Feel Like Haggling: Buyer agent commissions will now be part of offer contracts and buyer agency agreements. Buyers may ask sellers to include commissions in the form of seller concessions. That means home buyers and sellers alike will be negotiating commissions. Sellers will need expert licensed brokers to help them with these negotiations.
• Buyer Agent Commissions Can Be Offered Offline: Buyer agent fees can still be offered outside of the MLS. They just cannot be advertised on the MLS.

5 Tips to Sell Your House Fast in Chicago

With the right strategy, you can sell your Chicago home quickly. Here’s what you can do:

1. Pick the Right Time to Sell: Monitor market conditions closely to decide when to sell your home. In a buyer’s market, homes typically take longer to sell. On the other hand, in a seller’s market, properties tend to sell faster and often at a higher price.
2. Improve Curb Appeal: 97% of real estate professionals believe that curb appeal can quicken the sale process. You can paint the exterior, clean the walkway, and mow the lawn to potentially increase buyer interest.
3. Use Advanced Tech Tools: Showings Management and Offer Management tools help you manage the sale of your property. If integrated with a mobile app, you can use these tools to track your listing on the go.
4. Provide Seller Concessions: High mortgage rates have significantly reduced the number of home purchases. As a seller, you can offer seller concessions such as HOA fees or title insurance.
5. Offer Flexible Move-in and Move-out Dates: If you or your tenant occupy the property, be ready to move out quickly. Offering buyers a flexible move-in date can help close the deal faster.

Should I Sell My Chicago Home Now?

Yes, since home prices are rising, now is the best time to sell a house in Chicago. Additionally, as of September 12, 2024, mortgage rates have dipped from 7.79% to 6.35%. Buyers are now more motivated to purchase properties, increasing your chances of a quick sale.

Don’t miss your chance to make the most of this hot market. List your home on your local MLS now!

Frequently Asked Questions About Selling a Home in Chicago

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