Thinking about buying in Wisconsin after selling in Chicago, or the other way around? You are smart to ask how closing costs change across the state line. Even when the price is similar, who pays for title insurance or transfer taxes can shift your out‑of‑pocket by thousands.
This guide explains the most common closing‑cost items, who typically pays in Chicago and across Wisconsin, and how timelines and disclosures work. You will get practical checklists and tips to plan your budget and avoid surprises. Let’s dive in.
Quick snapshot: totals and who pays
- Buyers: expect closing costs of about 2% to 5% of the purchase price on financed loans. This excludes your down payment.
- Sellers: the largest cost is usually the real estate commission, often around 5% to 6% of the sale price. Other seller costs like transfer taxes, prorations, and payoffs often add another 1% to 3% or more, depending on local fees and your payoff balances.
- Custom matters: contracts and local practice determine who pays many items. Always confirm your numbers on the final Closing Disclosure (buyer) or settlement statement (seller).
What shows up on your closing statement
Lender fees (buyer)
These include origination or processing fees, underwriting, credit report, appraisal, flood cert, discount points if chosen, and mortgage insurance if required. Buyers typically pay these in both Illinois and Wisconsin. Lenders must disclose fees on your Loan Estimate and again on your Closing Disclosure.
Title search, title insurance, and closing fees
- Title search and exam: Usually a buyer cost, though customs vary.
- Owner’s title insurance:
- Chicago and much of Cook County: It is common for the seller to pay the buyer’s owner’s title policy premium.
- Wisconsin: In many markets the buyer pays for the owner’s policy. Practices vary by county and can be negotiated.
- Lender’s title policy: Protects the lender. Typically a buyer cost when there is a loan.
- Closing or settlement fee: May be split or paid by either party based on local custom and contract.
Title premiums are based on price and filed with the state, so they follow a set schedule. Whether you pay or the other side pays can swing your bottom line by several hundred to a few thousand dollars.
Transfer taxes and documentary stamps
- Chicago and Cook County: Expect state and local transfer taxes in addition to recording fees. Local custom often places transfer taxes on the seller, but responsibility is contract dependent. Check the purchase agreement and your title estimate.
- Wisconsin: Transfer tax practices vary by county and municipality. Many areas impose a transfer fee. Who pays is typically negotiated in the contract.
Always confirm current rules with your title company and review your settlement statement to see who is paying what.
Recording fees
Recording the deed, mortgage, and releases generates county fees. Buyers typically pay for deed and mortgage recordings. Sellers usually pay for mortgage releases. Fee schedules vary by county, and some Cook County filings can cost more than in smaller Wisconsin counties. Ask your title or closing agent for a county‑specific estimate.
Prorations and prepaid items
- Property taxes: Prorated at closing so each party pays their share based on the closing date. Illinois and Wisconsin both prorate, but billing calendars and assessment timing differ by county. Your title company will calculate the proration.
- Homeowners insurance: Buyers usually pay the first year at or before closing if there is a loan.
- HOA dues and assessments: Prorated to the day. An HOA statement or estoppel fee may apply.
- Mortgage interest: Buyer prepays interest from closing day to month‑end.
Inspections, surveys, and condition costs
Buyers usually pay for the home inspection, radon, pest, well or septic checks, and surveys when required. Survey rules and lender requirements vary by county and loan type.
Commission and seller payoff items
The seller’s largest cost is the negotiated listing commission. Other seller charges include mortgage payoffs, unpaid taxes, judgments or liens, and any HOA delinquencies. These are cleared at closing from sale proceeds.
Local extras to expect
Depending on the property location, there can be municipal water or sewer payoff letters, compliance checks, or special assessments. Utility transfer fees can apply and are usually modest. Your agent and title team will confirm what is required for your specific city or village.
Timeline and process differences
How long closings take
Most financed purchases close in about 30 to 45 days in both Illinois and Wisconsin. The biggest drivers are loan underwriting, appraisal scheduling, title clearance, and seller move‑out timing. Government required inspections or local filings can add time in some municipalities.
When you see final numbers
- Buyers: Your lender provides a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing. Compare it to the settlement statement from the title company.
- Sellers: You will receive a preliminary settlement statement before closing that shows transfer taxes, commissions, payoffs, and your net.
Recording and funding
Some counties record the deed and mortgage the same day, others post next day or later. In parts of Chicago, additional municipal steps can be needed before recording. Funding and key release follow local practice and the title company’s process.
Cross‑border scheduling tips
If you are selling in one state and buying in the other, coordinate early to avoid a gap between closings.
- Simultaneous closings: same day, when logistics allow.
- Post‑closing occupancy or rent‑back: seller stays for a set time after closing by written agreement.
- Contract contingencies: tie your purchase to the successful closing of your sale.
- Wiring funds: verify wiring instructions by phone using a known number and never rely only on email. Use the secure portals your title company provides.
Budget examples to guide your plan
These are simple planning ranges. Your final amounts depend on price, loan type, local transfer taxes, and contract terms.
- Buyer on a 400,000 purchase with financing: Plan roughly 2% to 5%, or about 8,000 to 20,000, for closing costs. Where the owner’s title policy lands and negotiated credits can move you within this range.
- Seller on a 400,000 sale: Plan for the negotiated commission plus about 1% to 3% in other closing costs. Transfer taxes and payoffs are the big variables.
Always rely on your lender’s Closing Disclosure and your title estimate for the final numbers.
How PHG streamlines Illinois and Wisconsin closings
When you are moving across state lines, you want one team to align the details. Here is how we coordinate your transaction from list to close.
Pre‑contract and offer support
- Provide ballpark, itemized closing‑cost worksheets for your specific county and price range.
- Recommend lenders with bi‑state experience so disclosures and timelines are consistent.
Under contract coordination
- Act as your single point of contact with lender, title or escrow, and local counsel if used.
- Select title partners with track records in the exact county where you are closing.
- Verify transfer taxes, recording fees, and who customarily pays each item in your market.
Pre‑closing guidance
- Review your Closing Disclosure line by line and explain differences from the Loan Estimate.
- Confirm seller payoffs, HOA estoppels, and any special assessments.
- Schedule both closings, confirm wiring protocols, and set key‑exchange timing.
Closing day and after
- Confirm disbursements, deed recording, and key release.
- Provide a post‑closing checklist for utilities, change of address, and next tax steps.
Security and fraud prevention
- Teach wire‑fraud safeguards and require verbal confirmation of wiring instructions using known phone numbers.
Cross‑border prep checklist
Use this quick list to stay ahead of the details:
- Get a written cost estimate from your lender and title company early.
- Ask who customarily pays the owner’s title policy in your target county.
- Confirm transfer taxes and recording fees, and who is paying each.
- Align closing dates for your sale and purchase, and set a backup plan.
- Verify wire instructions by phone using a trusted number you source yourself.
- Review your Closing Disclosure at least three business days before closing.
- Bring a government ID and follow the title company’s instructions for funds.
Ready for a smooth close on either side of the border? Reach out to the Phair-Hinton Group to plan your move with a single, experienced team that manages both states.
FAQs
Who usually pays transfer taxes in Chicago and Wisconsin?
- Responsibility is often negotiated. In Chicago, city and other transfer taxes are common and local custom often places them on the seller. In Wisconsin, practices vary by county, so check your contract and title estimate.
In Chicago vs Wisconsin, who pays the owner’s title policy?
- In Chicago and many Illinois markets, sellers commonly pay the buyer’s owner’s policy. In many Wisconsin counties, buyers commonly pay it. Confirm with your title company and contract.
How much should a buyer budget for closing costs?
- Plan about 2% to 5% of the purchase price for buyer closing costs on financed purchases, excluding your down payment.
Will cross‑state moves take longer to close?
- Not usually. The main timeline drivers are loan underwriting, appraisal, and title clearance. Working with lenders and title companies experienced in both states helps avoid delays.
When will I see my final closing numbers?
- Buyers receive a Closing Disclosure at least three business days before closing. Sellers receive a settlement statement from the title company prior to closing showing payoffs and net proceeds.
Where can I verify recording fees or transfer taxes?
- Check with your title company for a county‑specific estimate and refer to county recorder or municipal finance offices for current schedules. Your agent can help you connect with the right office.
