How much are closing costs for the seller? What are the costs the seller is responsible for in the transfer of their property?
Local customs will dictate which side of the deal will be paying for particular costs to transfer ownership of a home. Most homeowners are going to want to have a rough idea of how much it will cost to sell their home and what their net proceeds will be. You don’t want to be surprised at the closing table to find out about fees required to sell.
There are 5 main items that are typical costs for the seller.
1. Paying Off Your Mortgage
You can call your mortgage company ahead of time to find out what your payout number would be.
2. Conveyance Tax
In the State of Connecticut, seller’s are responsible for paying a conveyance tax when the transfer of title on the real property occurs. There is conveyance tax for the State and for the Local government.
State Conveyance tax
.75% of the price of the home if valued under $800,000 1.25% if the home is between $800,000 – $2.5M
2.25% if the home is over $2.5M
Local Conveyance tax
In Fairfield County it is .25% of the price of the home for all towns except for Bridgeport (.50%), Norwalk (.50%) and Stamford (.35%)
3. Broker Commission
This is traditionally a percentage of the sale paid to the broker for their services in marketing, negotiating, and all aspects of selling your home.
4. Attorney (between $875-1,200)
Legal services to transfer ownership of your home.
5. Miscellaneous items: property tax, water bill, miscellaneous fees.
These items may be prorated at the time of close.
Talk to your agent to help guide you through this process to determine an estimate in closing costs before you list your home for sale.