September 5, 2017

There are several costs involved in any property transaction in Connecticut, several of which fall on the home buyer. Besides the actual purchase price and down payment, other costs of sale for the buyer include:

Mortgage related costs: Upfront costs of funding your loan generally run 3-5% of the purchase price. These costs include origination fees, appraisal, upfront mortgage insurance, escrowed taxes and home-owners insurance, lenders title insurance etc. Your lender will be able to provide with an estimated CD – an estimate of all your closing costs related to the loan. It is possible and common as a condition of purchase to ask the seller to contribute to these on your behalf.

Inspection costs: You will most likely want to inspect the home you are purchasing, as well as the septic and well system if applicable. Full professional inspections for a home generally run between $400 and $800, depending on which inspections you choose to have.

Legal fees: You will want to have your own attorney represent you for any property purchase. Buyer’s attorney fees generally run $750-$1200. You will also want an owners title policy – typically $450-600.

Real estate commissions: While it is generally customary that the seller’s commission agreement with their Realtor also covers the buyer’s agents fee, there are instances in which there is a discrepancy between your contracted commission rate with your buyer’s agent and what they are being paid from the listing agent. This is rare, however in this instance you may be responsible for the difference. Your contract with your agent will spell this out.

Prorations: Depending on the date you close , there will usually be some real estate taxes that have been paid by the seller in advance, for which you will need to credit them. Also adjustments are usually made for heating fuels or other prepaid services ( ie trash collection ) These can vary widely.

An example: John and Mary buy a Southington, CT home for $200,000.

There are no seller concessions and the sale closes on June 31, so no real estate taxes need to be accounted for, and their real estate agents fee is covered by the co-broke offered in the mls.

Gross Sales Price: $200,000

Down Payment: $10,000 Inspections: $700 Upfront mortgage related closing costs: $7,200 Legal fees: $1,350 Prorations (sellers left half a tank of oil in the house): $350

John and Mary spend a total of $19,600  in upfront costs to close on their new home.  

Last Updated on June 17, 2018 by Minna Reid

About the author 

Minna Reid

Minna Reid is The Broker - Owner of Reid Real Estate Group. Reid Real Estate Group is a full-service Connecticut residential real estate brokerage, specializing in helping homeowners with legal and financial challenges including short sales, probate sales and tax lien complications.

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