Connecticut Seller Closing Costs in 2021: How Much Will You Pay?

Clever Real Estate


Clever Real Estate

March 3rd, 2021
Updated March 3rd, 2021


Home sellers can forget about closing costs because they are focused on profit margins. Before thinking about buying a snazzy new car with your home sale proceeds, you’ll need to have money set aside for closing costs. Here’s an in-depth guide about closing costs for Connecticut home sellers.

How Much Are Closing Costs for Sellers in Connecticut?

Closing costs are the fees and expenses that arise during the final step of a successful home sale. They typically consist of expenses that range from escrow fees to title insurance and can total as much as 7% of a home’s final sale price.

Sellers are normally responsible for closing costs that amount to 1%-3% of the sale price. However, this doesn’t include realtor commission fees which are also paid at closing and can be up to 6% of a home’s final sale price in Connecticut.

Saving money while selling your home can help to maximize the net profits that you walk away with at the end of your sale. Closing costs may be an unavoidable expense, but sellers can avoid paying exorbitant realtor commission fees. Flat-fee real estate agents work for a fraction of the cost, — over 50% in savings for you, while still providing the top-notch service that sellers deserve.

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If you’ve still got questions about closing costs and just how much you can expect to pay in during your sale, don’t worry. We’ve got you covered with everything you need to know about closing costs in Connecticut and how to save big when selling your home.

What are closing costs?

Closing is the last stage of a home sale in which the final details of the purchase are ironed out and the sale comes to a, well, close. All of the contingencies detailed in the purchase contract are fulfilled. During this stage, documents are prepared on both sides to complete the transfer of property.

All the expenses accrued during the home sale will be paid at this time, these costs are collectively referred to as closing costs.

The buyer’s mortgage lender will transfer the amount of the loan to an escrow company to cover the cost of the purchase. Once the documents have been signed and the agreements upheld, the escrow company will release the funds to the seller and the purchase will be complete.

How much are closing costs in Connecticut?

Generally, closing costs total 1%-7% of a home’s sale price. Sellers will typically cover up to 3% of the sale price with buyers covering about 4% according to data from

Local laws, home value, and whether the home is in an HOA can have a major effect on closing costs.

The majority of the buyer’s closing costs come from mortgage loan requirements and fees.

Sellers are responsible for paying their percentage of closing costs plus both the buyer’s agent and listing agent’s commission fees at closing. This amount is typically reflected on the seller's net sheet and deducted from the profits made on the home sale.

How to Calculate Your Closing Costs in Connecticut

It’s possible for sellers to calculate their closing costs to get a rough estimate of what they can expect to pay. One of the easiest ways to calculate closing costs is to utilize the following equation:

(Home Sale Price) x (Closing Cost Percentage) = Closing Costs

Using September 2019 data from Zillow on the median home sales price in Connecticut, this calculation might look like this:

$241,200 x .03 = $7,236

Sellers can expect to pay around $7,200 or less in closing costs in Connecticut. Once you have a listing or sale price on your home, you can plug in the numbers to get a more accurate number.

Selling in Connecticut? Don’t forget about closing costs!

Explore closing costs and determine how much you’ll pay.

What’s included in Connecticut closing costs?

Connecticut closing costs are accrued during the home sale and paid out during the final stage when the property is transferred from seller to buyer. Total closing costs can range from 1%-7% of a home’s sale price, with both parties contributing their share.

Title Search: $300 to $600

The title search retrieves a history of any transactions or major changes to the property. It proves that you are the owner and reveals any judgments or claims about the property.

Title Insurance: $1,000

Title insurance is usually required by the lender and ensures that the lender and owner are financially protected from any previous issues on the title such as recording error.

Home Inspection: $300 to $500

The home inspection gives prospective buyers a detailed analysis of the condition of the home and reports on any repairs that need to be made.

Appraisal: $450 to $650

An appraisal gives an estimate of the home’s value and works to validate the amount that the buyers are borrowing from their lenders.

Survey: $350 to $500

Surveys simply designate a property’s boundary lines and also serves as verification to the lender.

Credit Report: $20 to $50

The credit report is pulled by the lender to estimate their rates and ensure that the borrowers have a favorable credit history.

Loan Payoff Costs: 1.5% of the Sale Price

These are a combination of fees related to loans that include application fees, loan origination fees, and prepaid interest.

Mortgage Payoff/Prepayment Penalty: Varies

You’ll need to check in with your lender to determine whether you’ll have to pay any mortgage prepayment penalties prior to paying off the remainder of your mortgage loan.

Outstanding Amounts Owed on the Property: Varies

Any amounts that are owed on the property will need to be paid at closing. These can include HOA fees, homeowners insurance, property taxes, and utility bills.

Transfer Taxes: Varies

Transfer taxes are the taxes paid on the transfer of property.

Recording Fees: Varies

A third party will file the property transfer deeds at the local county office.

Settlement or Attorney Fee: $500 to $1,250

Connecticut requires an attorney to be present at closing.

Other Home Selling Costs in Connecticut

It’s important for sellers to account for all home sale costs, as unexpected costs can cause major headaches for sellers who haven’t budgeted properly. In a worst-case scenario, these costs can cause the sale to fall through if they can’t be paid.

On the seller’s side, home improvements and repairs can cost big bucks, but they can also significantly boost your home’s value. You can have an estimator come out and give you an accurate estimate of your home’s value, they can suggest any improvements or repairs that will increase your home’s value.

Sellers must also be prepared to cover the real estate agent commission. The average real estate agent commission rate in Connecticut currently sits at 6% of a home’s sale price. While this is split between the buyer’s and listing agent, the seller pays the total commission.

Using the median sale price of homes in Connecticut, $241,200, sellers should expect to pay around $14,472 in realtor commission fees.

> Learn more about how much it costs to sell a house in Connecticut.

Who pays closing costs in Connecticut?

Both sellers and buyers are responsible for paying closing costs in Connecticut. While buyers and sellers are free to negotiate who pays what closing costs, sellers typically pay around 1%-3% of the home’s sale price while buyers cover around 5%-6%.

Typical Seller Closing Costs

Typical seller closing costs are less than the closing costs that buyers pay, however, sellers must cover realtor commission fees in addition to closing costs. Here are the closing costs that sellers typically pay:

  • Outstanding Amounts Owed on the Property
  • Fees for buyer’s title insurance policy
  • Recording Fees
  • Transfer taxes
  • Mortgage payoff and prepayment penalty*
  • Seller’s attorney fees*

*Not applicable to all home sales.

Typical Buyer Closing Costs

Buyer closing costs are typically higher than sellers, with the bulk of the costs being related to their mortgage loans. Here’s a quick breakdown of what to expect:

  • Loan Fees
  • Title Search Fees
  • Lender’s Title Insurance
  • Credit Report Fees
  • Home Inspection Fee
  • Appraisal Fee
  • Settlement Fees*
  • Survey Fees*
  • Buyer’s Attorney Fees*

*Not applicable to all home sales.

Should you pay the buyer’s closing costs?

In a cool buyer’s market, homeowners can offer seller’s concession such as paying buyer’s closing costs as a way to interest more buyers.

Sellers may also agree to pay the buyer’s closing costs during the negotiation phase, especially when there are issues that come up during the inspection process. An experienced real estate agent can help you to negotiate who pays closing costs.

Key Takeaways for Connecticut Home Sellers

Closing costs for Connecticut home sellers can be up to 3% of the home’s sale price and are a combination of a variety of costs that have accrued during the home sale. Sellers are responsible for paying realtor commission fees on top of closing costs.

Homeowners will sometimes offer concessions and agree to pay the buyer’s closing costs, typically to entice buyers in a cool market.

Sellers should consult an experienced real estate agent, tax advisor, or attorney when selling to get a clear idea of what they can expect to pay in closing costs. Realtors will draw up net sheets that detail every expense of the home sale and give an estimation of what sellers will pocket at the end of the sale.

Clever Real Estate can match you with a top agent who saves you money on your home sale. Clever Partner Agents are experienced local agents with extensive knowledge of their real estate market.

Sellers who want to save big on realtor commission fees will be thrilled to hear Clever Partner Agents are full-service, flat-fee agents who can save sellers over 50% in commission fees.

> Discuss your options and save with a top agent today!

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