Wondering what costs you’ll face as a home seller in CT? You won’t walk away from closing with a check for the full purchase price! Read this quick guide to help you understand all your closing costs, and most importantly how much of your hard earned equity you get to keep!
Seller’s closing costs in a Connecticut home sale:
There are many costs involved in selling your CT home, which will all be deducted out of the proceeds of the sale. I usually advise my clients that they can expect to pay about 7 – 8 % of the purchase price for the cost of the sale:
CONNECTICUT SELLER SIDE CLOSING COSTS:
While real estate commissions are always negotiable, for these purposes I will use an example of 6% commissions that most traditional real estate agents charge. That includes compensation to the listing agent, and the listing agent pays a portion of this to the cooperating broker (the buyer’s agent). However, with Venture One Realty’s full service 1% listing program you would save thousands in real estate commissions.
In any real estate sale in CT (excluding some short sales and foreclosure sales) the state charges a fee for conveying property. This fee is .75% (3/4 of 1%) of any sale up to $800,000 after which the fee jumps to 1.25%. The town you live in will also charge their own conveyance tax of .25% (for most towns – a few charge more – 1.25%). Conveyance taxes usually total is 1-1.25%.
Your closing attorney will also charge a fee. This is usually $500-$1,000 or more depending on the complexity of the transaction.
OTHER POSSIBLE SELLER COSTS:
Often, buyers will ask for sellers to pay for some of their closing costs or there will be repair credits issued after negotiation. Based on your home inspection these can vary but in general the better shape your house is in then the lower the likelihood of having to issue a credit.
Sellers will usually either be credited for real estate taxes paid, or at times they may be debited for real estate taxes not yet paid but due at the time of closing. Usually some adjustments will be made for heating fuel left behind or prepaid expenses such as trash disposal services or leased equipment.
There may also some other smaller administrative fees involved which can vary slightly. You can estimate about $350 -$500 for courier, wire, and recording fees.
Joe and Sue sell their South Windsor, CT home for $250,000. Joe and Sue have a $150,000 mortgage to pay off. There are no seller concessions and the sale closes on June 31, so no real estate taxes need to be accounted for.
Purchase Price: $250,000
- 6% Realtor Commissions: – $15,000
- Seller Conveyance taxes to town and state: – $2,500
- Legal fees: – $1,000
- Wire, Courier and Misc – $500
Total Expenses = $19,000
Mortgage Payoff = $150,000
Total Closing Expenses = $19,000 or 7.6% of the Sales Price
Net proceeds to Joe and Sue: $81,000
Joe and Sue walk away from closing with a check for $81,000.
If Joe and Sue had used Venture One Realty, they would have reduced their closing costs by almost 50% and saved thousands of dollars, putting more money in their pocket.
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About Venture One Realty, llc.
Venture One Realty has recognized that Connecticut Homeowners need and want a way to keep more of their hard earned equity when selling their home. Our Clients save Thousands of Dollars without sacrificing the services that are critical to maximizing the sale price of their home. We offer all the same MLS exposure, marketing tools, technology, quality of service, expertise, and personal attention as the Other Realty Companies but without the costly Real Estate Commission. You pay only 1%.
We are a full service Real Estate Agency that will manage the entire home selling process from listing to closing. You get everything you would expect from a traditional Real Estate Agent but with the added benefit of working with a technology enabled and customer focused team of Agents. Our results speak for themselves.
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