One of the first questions home-sellers often ask me during our listing appointment is about closing costs; the costs associated with a sale. They ask me this that they can have a better understanding of how much they will net after the sale and can begin to plan their next move.
In Connecticut closing costs can vary depending upon the sales price of a property and the town in which the property is in. You might want to consider consulting with a tax attorney, financial planner or real estate attorney if you have special tax circumstances, a portfolio of properties, an LLC, are selling due to probate, are planning on selling an investment property or a property you’ve “flipped”, selling due to divorce or have a unique circumstance of ownership. The right professional may help you better understand your options and can work with me to craft a strategy that might help you save money.
Below is an overview to help you estimate the costs associated with a standard residential property sale. (Please note some of these numbers are subject to change, some can vary by service provider and some may not pertain to all transactions)
Estimated Seller Closing Cost for Property Sale in Connecticut
– State Conveyance Tax 0.75% of Sales Price up to $800K / 1.25% of Sales Price above $800K
– Local Conveyance Tax .25% of Sales Price (see below for more details on this tax)
– Realtor Fees (Varies)
– Attorney’s Fee (Varies)
– Staging Fee (Varies)
– Outstanding Real Estate Taxes
– Mortgage Payoff
– Line of Credit Payoff
– Outstanding HOA Fees / Cost of Ordering Resale Package
– Outstanding Liens
Some real estate transaction are exempt from conveyance tax. These include:
– transactions between spouses
– foreclosure by sale
– some non-profit transactions
More on the Municipal Conveyance Tax
For most towns the municipal conveyance tax is 0.0025 (.25%). However, there are currently 18 eligible municipalities that are permitted to impose a tax of up to 0.005 (.5%). These towns include:
– Bloomfield
– Bridgeport
– Bristol
– East Hartford
– Groton
– New London
– Hamden
– Hartford
– Meriden
– Middletown
– New Britain
– New Haven
– Norwalk
– Norwich
– Southington
– Stamford
– Waterbury
– Windham
To learn your town’s tax rate, call your local assessor’s office. Since taxes, fees and rates are always changing, please do your due diligence and be sure to check your local area for any additional property transfer fees.