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What Sellers Need to Know About Closing on a Home

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Selling your home is an exciting milestone, but once you accept an offer, there’s still important work to be done. The closing process is the final step before the sale becomes official, and understanding what to expect can help you move forward with confidence.

Whether you’re selling your first home or your fifth, here’s a guide to what sellers need to know about closings — and how working with a REALTOR® helps protect your interests every step of the way.

1. What Is “Closing,” and Why Does It Matter?

Closing is the finish line of your home sale. It’s the moment when:

  • Ownership officially transfers to the buyer

  • You receive the proceeds from the sale

  • All documents and payments are finalized

While the process is structured and routine, it includes several deadlines, negotiations and legal requirements. Your REALTOR® will be there to help you stay on track, avoid delays and protect your private property rights throughout the transaction.

2. What Happens After You Accept an Offer?

Once you and the buyer sign the purchase agreement, the clock starts ticking on several key steps:

Home Inspection

Most buyers schedule an inspection. The results may lead to repair requests or credits. Your REALTOR® can help you navigate these conversations and advocate for fair, reasonable solutions.

Appraisal

If the buyer is using a mortgage, their lender will order an appraisal to confirm the home’s value. If the appraisal comes in low, your REALTOR® can help you negotiate next steps to keep the deal moving forward.

Attorney Review

In Illinois, attorneys commonly review the contract to ensure everything is accurate and protects both parties. This is a key safeguard for your rights as a seller.

3. Preparing for Closing Day

Before the big day arrives, you’ll need to complete a few final tasks:

Gather Your Documents

Commonly required documents include:

  • Utility information

  • Repair receipts

  • Appliance warranties

  • Government-required disclosures

  • HOA documents (if applicable)

Your REALTOR® will be able to tell you exactly what’s needed.

Prepare the Property

Make sure the home is in the agreed-upon condition in the contract. Buyers typically have a final walkthrough within 24 hours of closing to confirm everything is as expected.

Coordinate Your Move-Out

Plan your timeline carefully, especially if you’re buying and selling at the same time. A REALTOR® can help coordinate logistics, so your move goes smoothly.

4. Seller Closing Costs: What You’ll Pay

Just like buyers, sellers have closing costs. These may include:

  • Transfer taxes

  • Title insurance for the buyer (common in Chicago)

  • Attorney fees

  • Remaining mortgage balance

  • Prorated property taxes

  • Agreed-upon repairs or credits

Your REALTOR® can help you understand what to expect and estimate your net proceeds early in the process, so there are no surprises.

5. What Happens on Closing Day?

On closing day, you and your attorney will sign final documents, confirm the numbers on the closing statement and officially transfer the property to the buyer. Once everything is completed, the sale is recorded and funds are disbursed to you.

Most Chicago closings take place at a title company, but virtual options may be available.

6. How a REALTOR® Helps Protect Your Sale

Closing a home sale involves dozens of important details, sometimes-difficult decisions and multiple professionals. Your REALTOR® helps you:

  • Navigate inspections, appraisals and negotiations

  • Understand a complex legal timeline

  • Avoid delays and costly mistakes

  • Stay informed about neighborhood trends and market shifts

  • Protect your financial and property rights

Final Thoughts

Closing on a home is both a legal process and a major milestone. With the right preparation — and the guidance of a knowledgeable Chicago REALTOR® — you can move through your closing smoothly and confidently.

If you’re thinking about selling, connect with a local REALTOR® who understands Chicago’s neighborhoods, market conditions and the steps needed to make your sale a success.

Understanding Closing Costs: A Buyer’s Checklist

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You’ve found the right home, negotiated an offer and are ready to close. Before you get the keys, there’s one more important piece to plan for: closing costs.

Closing costs are the fees and expenses you pay to finalize your mortgage and officially transfer ownership of the property. They typically range from 2% to 5% of your home’s purchase price, and they cover a mix of lender, legal and administrative services that make your home purchase possible.

Understanding what to expect can help you budget confidently and avoid surprises at the closing table. Here’s a checklist to guide you:

Lender-Related Costs

These fees come directly from your mortgage lender. They include:

  • Loan origination fee: Covers the lender’s processing and administrative work for creating your mortgage.

  • Credit report fee: The cost to pull your credit report and evaluate your financial history.

  • Underwriting fee: Charged for verifying your income, assets and risk as a borrower.

Tip: Ask your lender for a loan estimate early in the process. This document breaks down each expected charge so you can compare lenders and avoid hidden fees.

Title & Legal Fees

These costs ensure the property’s ownership is clear and legally transferred to you. You can expect to pay:

  • Title search & title insurance: Verifies that the seller legally owns the home and protects you (and your lender) from future claims against the property.

  • Attorney fees: In Illinois, closings typically involve an attorney who reviews documents, ensures legal compliance and guides you through the process.

  • Recording fees: Paid to the county to officially record your new deed and mortgage.

Prepaid & Escrow Items

You’ll likely prepay certain ongoing costs at closing, like:

  • Property taxes: Usually prorated between the buyer and seller, depending on when the property changes hands.

  • Homeowner’s insurance: Lenders often require the first year’s premium to be paid at closing.

  • Prepaid interest: Covers interest that accrues from your closing date until your first mortgage payment.

  • Escrow deposits: Funds held by your lender to cover future property tax and insurance payments.

Other Possible Expenses

  • Appraisal fee: Pays for an independent assessment of your home’s value to confirm it meets the lender’s standards.

  • Home inspection: Though not always required by the lender, it’s a smart step to identify potential repairs or safety issues.

  • Transfer taxes: In Chicago, both buyers and sellers may pay a real estate transfer tax when the property changes hands.

Preparing for the Final Step

Before closing day, review your closing disclosure, a detailed summary of all final costs, at least three business days in advance. Compare it with your loan estimate and ask your lender or attorney to explain any differences.

If funds are due, your lender or attorney will let you know how much to bring to the closing table (usually by wire transfer or cashier’s check).

Buying a home is one of the biggest investments you’ll ever make — and knowing what to expect at closing helps you start your homeownership journey on the right foot.

What Happens Between Contract Signing and Closing?

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You found the perfect home, your offer was accepted and the contract is signed—congratulations! But before you pop the champagne, there’s still a critical stretch of the homebuying journey ahead: the closing process. 

Between contract signing and getting the keys, several important steps must be completed to ensure the deal moves forward smoothly. Here are the key milestones every buyer should expect during this phase, plus helpful tips to keep things on track.

Entering Escrow

Once your offer is accepted and the contract is signed, both parties typically enter escrow. Escrow is a neutral holding arrangement where a third party manages funds and documents until the transaction is finalized. 

During this time, you’ll deposit earnest money—a good-faith payment showing you’re serious about the purchase. This money is usually credited toward your down payment at closing. 

✅ TIP: Confirm the escrow instructions and timeline with your REALTOR® so you don’t miss any deadlines.

The Appraisal

If you’re financing the purchase, your lender will require a home appraisal to determine the property’s market value. A licensed appraiser will assess the home based on factors such as: 

  • Condition and age 
  • Location 
  • Renovations 
  • Sales of similar nearby properties 

If the appraisal matches or exceeds the agreed-upon price, you’re one step closer to closing. If the home appraises for less, you may need to renegotiate or cover the difference. 

📖 What to expect during an appraisal 

✅ TIP: Ask your agent to run recent comps before the appraisal so you have a sense of what to expect and can be prepared to negotiate if needed.

Securing Insurance

Before your lender gives final approval, you’ll likely need to secure homeowners insurance. Depending on the property’s location, other types of coverage—like flood, earthquake or liability insurance—may also be required. 

Even if it’s not mandated, insurance is critical to protecting your investment and peace of mind. 

✅ TIP: Start gathering insurance quotes early so you can compare coverage and rates before your lender’s deadline.

Getting a Home Inspection

A home inspection isn’t always required, but it’s highly recommended—and often included as a contingency in your contract. A qualified inspector will evaluate the home’s structure, systems and safety. 

If the inspection uncovers major issues, you’ll have options: negotiate repairs, request a credit or, if needed, walk away without penalty. 

📖 What to expect during a home inspection 

✅ TIP: Attend the inspection if possible. It’s a great opportunity to ask questions and learn more about the home’s maintenance needs.

The Final Steps

Once the appraisal, inspection and insurance are squared away, your lender will issue final approval, and you’ll schedule your closing day. On that day, you’ll review and sign documents, pay your remaining costs and—finally—get the keys. 

📖 Steps between signing and closing 

✅ TIP: Do a final walkthrough the day before closing to confirm the home’s condition matches what was agreed upon—and that any requested repairs were completed. 

The Bottom Line

Signing the contract is a big milestone, but it’s just the beginning of the final leg of your homebuying journey. Knowing what to expect—and working closely with your REALTOR®—can help ensure a smoother, more confident path to homeownership. 

A Closer Look At Closing Costs

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Closing costs are a one time payment that is made on your home on the day the sale closes. However, not all closing costs are created equal. Some are negotiable, while others are set in stone. Here is what you need to know about them.

Overview of Closing Costs

Closing costs, in short, is the money you must pay when you buy a house. These fees for a home can vary depending on the price and type of home you are purchasing. They cover every expense associated with buying a house — from legal fees to property taxes to an inspection.  

There are several costs that you should budget for if you’re planning on buying a home.

Common Closing Costs

  • Loan Application Fee
  • Appraisal Costs
  • Attorney Fee
  • Closing Fee
  • Credit Reporting Fee
  • Escrow Funds
  • Homeowner’s Insurance
  • Loan Origination Fee
  • Title Insurance
  • Property Taxes
  • Transfer Tax
  • Underwriting Fee

Depending on how much money you’re putting toward a down payment, the type of mortgage, the type of home, the location of the home and other considerations, you may end up having to other additional fees.

Budgeting for Closing Costs

In general, closing costs are typically between 2% and 5% of the property’s purchase price. For example, if you are purchasing a home for $300,000, your costs could range from $6,000 to $15,000.  However, it is important to keep in mind that this is just a rough estimate, and the actual amount you pay could be higher or lower depending on a variety of factors.   

To determine how much you will have to pay, you should work closely with your lender and REALTOR®. They can help you understand the various fees associated with purchasing a home and provide you with a detailed list of anticipated costs. You can ask your lender for a loan estimate, which provides a similar breakdown of costs but also includes information about the terms of the mortgage.  

Budgeting for closing costs is an important part of the homebuying process. To prepare for these costs, you may want to set aside a specific amount of money in a savings account. You may also be able to negotiate with the seller or lender to reduce the closing costs, although this may not be possible in all cases.  

Ensure that you review all costs before signing the final purchase agreement to understand all the fees involved. By being prepared and budgeting for these fees, you can make the homebuying process as smooth and stress-free as possible.

three people looking at documents

What to Expect During A Closing: Buyers

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A closing is when you, the buyer, sign the final ownership paperwork and officially, legally become the owner of your home! You will leave your closing with the home’s keys.

Your closing date will likely be listed on the purchase and sale agreement you will sign after your offer is accepted. On average, closings are scheduled within a month or two of signing this document.

LEADING UP TO THE CLOSING

As the buyer, the days leading up to the closing will include reviewing lots and lots of paperwork. Try not to stress! Your REALTOR®, your lender and your attorney are there to assist you.

One of these documents is the Closing Disclosure (also called the CD) which lays out your final loan terms and closing costs. You will get your CD from your lender at least three days before closing for you to review.

The CD will ensure there are no surprise costs for you at the closing table. Compare this with your initial Loan Estimate when you applied for the loan, and if you see significant discrepancies, contact your lender at once.

What is the difference between closing costs and your down payment? While your down payment goes towards your home loan, closing costs are typically one-time fees that go towards all the other services that take place during the transaction such as:

  • Loan application fees
  • Appraisal fees
  • Title search fees
  • Your attorney’s fees
  • Recording fees
  • Lender costs such as underwriting, credit report and origination fees
  • Commission for both the buyer’s and the seller’s agent
  • Property taxes

If you’re nervous about how to accurately anticipate the closing costs, consult your loan estimate. It includes estimates for each of these line items. Also, Nerdwallet has a free, online calculator.

couple signing documents

WHAT TO EXPECT DAY-OF

You will attend the final walkthrough of your home within 24 hours or the day-of your closing. Typically, you, your REALTOR® and the seller’s agent will attend as you make sure any and all request repair work was completed.

What are you looking for? You’re ensuring everything is functioning properly and that nothing has broken or been damaged since the inspection. Ask your REALTOR® for a list of what to look for during the final walkthrough. If everything is as it should be, you’re ready to close! If you see anything amiss, you and your REALTOR® will contact your attorney and the seller’s agent to negotiate potential compensation for the problems at the closing table.

What should you bring to the closing table? A pen, a government-issued photo ID and a cashier’s check or proof of wire transfer to cover the closing costs and any remainders of the down payment. Ask your attorney how much you should pad for potential closing costs increases such as prepaid interest.

Note: bringing “cash to close” does not mean you should bring cash!

Depending on your state or personal circumstances, ask your attorney if you need to bring any other documentation such as proof of homeowner’s insurance.

AT THE CLOSING TABLE

Prepare yourself to sign a large stack of paperwork! Your attorney will go through each one of these documents, although you will also receive them the night before to review them in greater detail.

Depending on a number of factors, closings can last between an hour to several. You as the buyer can help prevent unnecessary delays by avoiding changes to your financial situation such as large purchases on your credit card, applying for credit or changing employers.

Who is there? At minimum, you can expect it to be you, your attorney and the lender. Depending on the circumstance, the seller may attend if they haven’t already signed their necessary documents. No matter what, you are not alone. Your attorney and your REALTOR® are available to answer questions or address concerns.

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WHAT’S NEXT?

You have your keys! You have officially purchased your home! Here are a few best practices to kick off your first hours/days as a homeowner on a strong note:

  • Take your copies of the closing documents you signed and save them in a secure place.
  • If you negotiated a same-day move with the seller, keep track of each key! Confirm you’re receiving one for any and all doors, mailboxes or entries.
  • Prepare a list of authorities or organizations (like the U.S. Postal Service) you need to notify of your change of address, as it applies.

With constant communication and intentional preparation, your closing can feel like an exciting culmination of all your hard work, research and exploration. Utilize the team of professionals at your back so you can save on stress and celebrate this exciting milestone.