Wondering what the cost of selling a house in CT might be?
When selling your house in Connecticut, it is important to understand all of the costs that are involved in the process; from the realtor commissions to the conveyancing taxes. They can add up quite quickly, so if you are not fully prepared for them, you may find yourself in some difficulty. Many individuals think that the price they are selling their property for is what they are going to get, forgetting to consider the additional costs that are involved, especially if you are buying a house at the same time.
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:
The cost of selling your house in Connecticut is going to vary.
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. This is one of the most important costs of selling your house that you need to consider.
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. This is a great way to reduce the high costs of selling your home in Connecticut, as well as the burden. Realtor fees are often one of the most expensive costs involved with selling your property, so it is always a good idea to shop around for the best prices.
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 when dealing with the sale of your property.. This is usually $500-$1,000 or more depending on the complexity of the transaction.
OTHER POSSIBLE SELLER COSTS
A common cost to selling your house which is typically forgotten about, is seller concessions. 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.
Depending on the state of your home, and the result of your home inspection, you may choose to make repairs to your home. While these aren’t a direct closing cost, they do form part of the expenses that you would invest in selling your home. Some people may also choose to spend money on cleaning and other tasks to prepare the property for sale.
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. This is an important cost of selling your house that you will need to consider.
When selling your house, one of the costs that you may have to endure is the cost to move your belongings. This might be in the form of a moving van, or paying a moving company to do it all for you. There may also be a period of overlap, whereby you have a gap between moving out of your property, and moving into your new one. These are important costs that you will need to consider when selling your home, in addition to the professional fees.
There may also some other smaller administrative fees involved in selling your property which can vary slightly. You can estimate about $350 -$500 for courier, wire, and recording fees. You may also come across some hidden fees that you are subject to, such as paying off insurance and fees that you owe your lender.
The average cost of selling a house in Connecticut
Here is an example of the cost of selling your house in Connecticut
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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Top tips for maximizing your money when considering the costs of selling your home
Choose a Real Estate Agent with a 1% listing fee
The cost of selling your house in Connecticut can be expensive. It is therefore important that you are aware of all the costs that are involved, especially if you are buying a property at the same time, as you might not have all the available funds that you thought you had. With this awareness, you can also take steps to see where you can save money down the line, like working with a real estate agent who offers a 1% listing fee. Real estate agent fees make up a large proportion of the costs of selling your house. Working with the right agency will enable you to maximize your money.
Negotiate a good deal
It is important when selling your property, that you negotiate a good deal with the buyers. A real estate agent that you trust will be able to help you negotiate the right price for your property. You need to come to a fair agreement, where you can walk away with a good deal, while keeping potential buyers happy.
Sell in the right market
Selling your property at the right time can have a huge impact on the money that you spend. Make sure you do your research, looking specifically at whether it is a buyers or sellers market, and seek the support of a trusted real estate agent to help you.
Cost To Sell A Home In Connecticut, Our full service 1% listing plan includes all the services you expect with the most expensive real estate companies and agents. This means a full MLS listing with 40 professional MLS photos, Zillow, Realtor.com, post yard sign, electronic lock box, open house scheduling and signage, all forms and disclosures, and a customized printable brochure of your home. Full broker support with pricing, showings, offers, contracts, inspections, negotiations, and financing issues.