Hidden Costs of Buying a Home in Chicago (That Might Surprise You)

When you're buying a home in Chicago, it's easy to focus only on the down payment and monthly mortgage. But there are a few sneaky expenses that can surprise even seasoned buyers. If you’re planning your move, it’s smart to prepare for these hidden costs upfront so you’re not blindsided at closing—or worse, after move-in.

1. Closing Costs Add Up

Aside from your down payment, you’ll also be responsible for closing costs, which usually range from 2% to 5% of the home’s price. In Chicago, this can include lender fees, title insurance, attorney fees (yes, Illinois requires a real estate attorney), and a property transfer tax. The City of Chicago also charges its own transfer tax, which is an additional expense to keep in mind.

2. Home Inspection and Appraisal

These are non-negotiables. A home inspection helps identify issues before you buy, while a home appraisal is required by your lender to verify the property’s value. Together, they can cost between $700 to $1,000. It's money well spent, but definitely an expense worth budgeting for.

If you're searching homes for sale in Chicago, these should be part of your plan from day one.

3. Property Taxes and HOA Fees

Cook County taxes can be high, and payments are typically due in two installments. It's also important to note that property taxes are reassessed every three years, which could raise your monthly escrow unexpectedly. And if you’re buying a condo, be prepared for monthly HOA fees, which vary widely depending on the building amenities and location.

The Illinois Department of Revenue provides a breakdown of how property taxes work in the state.

4. Moving, Maintenance & Utilities

From moving costs to utility deposits, lawn equipment, or minor repairs, post-purchase expenses pile up quickly. Older homes in Chicago, especially in historic neighborhoods, might need upgrades or maintenance sooner than expected. It's always a good idea to set aside a little cushion for the unexpected.

Want a more detailed plan for your purchase? Feel free to connect with our team—we’re happy to walk you through it and answer any questions.

We also recommend checking our real estate blog for buyer tips, Chicago market updates, and advice on how to avoid common pitfalls.

And if you’ve got friends who might benefit from this info, send them our way through our referral program—we always appreciate a good word!

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