Connecticut Home Sellers Can Expect to Pay These Closing Costs
If you’re selling a home in Connecticut, you should familiarize yourself with closing costs that sellers pay to finalize the transaction.
The average closing costs for home sellers fall between 6% to 10% of the home’s sale price. For example, a seller’s closing costs for a median sale price of $430,000 would range between $25,800 and $43,000, depending on various sale factors.
For an accurate projection of what you’ll pay for closing costs in Connecticut, it’s necessary to dig a little deeper into the details. To help you estimate your closing costs in the Constitution State, we created this comprehensive guide with help from a top Connecticut real estate agent.
Connecticut sellers can count on these costs
Some closing costs apply to nearly every home sale. Here’s what home sellers in Connecticut customarily pay:
1. Mortgage payoff
About 66% of the 1.4 million households in Connecticut are owner-occupied, and 61.5% of those homes have outstanding mortgage debt. This means that most Connecticut home sellers need to pay their remaining mortgage balance before transferring the property title to a buyer.
Typically, sellers use their home sale proceeds to cover their mortgage payoff as well as other closing costs. If you have substantial equity, you can even walk away from your sale with a significant profit.
2. Loan reconveyance fee
When you pay off your mortgage, the lender will usually charge an administrative fee to handle documents reflecting that they no longer have a claim on your property. In other words, a loan reconveyance fee is what you pay to have the mortgage company remove their lien on your home. Typically, this fee will run you about $50 – $65.
3. Recording fees
You also need to pay your county to record the reconveyance that you are now the outright owner of your property. In Bridgeport, Hartford, and Greenwich, for example, reconveyance recording costs $60 for the first page of the document, plus $5 for every additional page.
4. Property taxes
At closing, you’ll settle any outstanding property taxes, paying a prorated amount that reflects only the days of the year that you owned the property.
Kelley Colino, a Danbury, Connecticut, real estate agent with 21 years of experience and over 435 transactions under her belt, tells us that property tax due dates depend on your local government:
“Sometimes, a particular township might charge property taxes quarterly, sometimes twice a year. If you’ve made payments for the rest of the year, the buyer will reimburse you for everything you’ve already paid.”
On average, property taxes in Connecticut cost 1.96% of a property’s estimated value per year. However, the price is dependent on the mill rate of your local government. For a list of Connecticut mill rates, see here.
