What Does It Really Cost to Buy or Sell a Home?
When it comes to buying or selling a home, most people focus only on the big numbers—purchase price or sale price. But as a real estate team working throughout Greater Peoria, Central Illinois, and Oak Run, we know the real question on everyone’s mind:
👉 What does it really cost?
Today we’re breaking down every common expense for both buyers and sellers, so you can make confident, well-planned decisions.
Costs for Home Sellers in Central Illinois
1. Real Estate Commission
As of the 2024 industry changes, sellers in Central Illinois are no longer automatically responsible for paying the buyer’s agent commission. Instead, sellers decide whether they want to offer compensation to a buyer’s agent as part of the terms of the transaction.
While co-op compensation can no longer be advertised on the MLS, many sellers still choose to offer some form of compensation because:
It may help make their home more appealing to buyers who prefer or need representation.
It can be used as a negotiation tool to strengthen an offer or help a deal come together.
Ultimately, the amount you offer — if any — is entirely your choice, and we walk you through the pros and cons based on your price point, location, and market conditions.
2. Pre-Listing Expenses
These optional expenses often boost sale price and speed:
Pre-sale cleaning: $150–$400
Staging: $300–$1,500
Minor repairs/updates: $200–$2,000+
In Oak Run, where outdoor living is a major draw, exterior improvements such as power washing, deck touch-ups, and landscaping can have an especially strong impact.
3. Closing Costs for Sellers
Expect to pay:
Title company fees
Transfer taxes (state + county/municipal)
Attorney fees: typically $500–$1,000 in Central Illinois, if applicable
Prorated property taxes
➡ Estimated Total: Typically 1–3% of the sale price, excluding any agent compensation the seller chooses to offer.
4. Buyer Credits or Repairs
Depending on inspection findings and negotiations, sellers may offer:
Closing cost credits
Repairs or replacements
A home warranty
These are case-specific but should be considered when budgeting.
Check out more seller resources here.
Costs for Home Buyers in Central Illinois
1. Buyer Agent Compensation
Due to the 2024 commission rule changes, buyers are now responsible for compensating their own agent, unless they negotiate for the seller to contribute.
Here’s what this means for you as a buyer:
You will review and sign a written buyer representation agreement outlining your agent’s compensation.
You may request that the seller pay all or part of this amount as part of your offer, similar to asking for seller-paid closing costs.
The seller’s willingness depends on offer strength, competition, and overall market conditions.
Our team helps you structure your offer strategically so you’re comfortable with how your representation is funded.
2. Earnest Money Deposit
A good-faith deposit held until closing.
Typical Range: 1–3% of the purchase price
This is credited back to you at closing.
3. Down Payment
Common options in our area include:
FHA: 3.5%
Conventional: 3–20%
VA/USDA: 0% (often available in rural areas, including parts of Central Illinois)
4. Closing Costs for Buyers
Typical buyer closing costs include:
Lender fees
Appraisal ($450–$650)
Title fees
Credit report & underwriting fees
Prepaid taxes and insurance
Escrow setup
➡ Estimated Total: 2–5% of the purchase price
5. Inspections
Common inspection costs in the region:
Home inspection: $350–$550+
Pest inspection: $75–$100
Radon test: $150+
Well/septic inspection: $300–$700 (common in rural areas and Oak Run)
These protect your investment and can influence negotiations.
6. Optional Costs
Survey: $350–$800
Moving expenses: $300–$2,000+
HOA fees: Certain communities, including Oak Run, may require them.
Check out more buyer resources here.
How We Help Buyers & Sellers Save Money
As a real estate team, our goal is to ensure you keep more money in your pocket. Here’s how we do that:
We recommend which updates or repairs will have the best return.
We negotiate aggressively to protect your financial interests.
We connect you with trusted local lenders, inspectors, and service pros.
We explain every cost upfront so there are no surprises at closing.
Buying or selling a home is one of the biggest financial decisions you’ll ever make — and we’re here to make the numbers clear and manageable.
Final Thoughts
Whether you’re entering the market in Greater Peoria, planning a move within Central Illinois, or dreaming of a lake home in Oak Run, knowing the true costs helps you make smarter real estate decisions.
If you’re thinking about buying or selling, let’s talk.
👉 We’d love to give you a personalized cost breakdown based on your goals.