Selling a home seems like a straightforward, if not simple, process. Most people believe you list the property for sale, agree on a price and then sign a few papers before walking away.
Unfortunately, there is more to the process of selling a home in Connecticut. Many first-time sellers are unaware of the many costs associated with residential real estate closings in our state. Both the seller and the buyer will face several expenses before the deal concludes.
Examples of closing costs for home sellers
If this is your first time selling a home, it is wise to become familiar with the costs you may incur. Doing so ensures that you have the funds necessary to close the sale and don’t encounter any unexpected fees.
- Mortgage payoff: In most cases, sellers must pay the remainder of the mortgage before the title can be transferred to the buyer. In most cases, this expense comes out of the proceeds from the sale.
- Recording fee: Selling a home means the county of purchase must record the sale officially. In Hartford and other regions, it typically costs $159 to record the transaction.
- Tax obligations: Sellers can expect to pay property taxes as well as local and state transfer taxes. Since most property taxes arise once a year, the home buyer will reimburse you for taxes already paid for the year you sell the home.
- Liens: Buyers must pay for a title search on the home before purchase. If this search uncovers any liens against the property, sellers must pay the lien off.
Once you understand how the closing process addresses financial matters like taxes and fees, you can feel more confident about selling your home. Learning more about residential real estate closings in Connecticut can also ensure the success of your sale. An experienced legal representative can offer much guidance and insight into the sale of your property.