Selling a Home

 




Transaction Costs

There are costs associated . . . with the sale of your home and you should be fully aware of them.

A seller's first concern in this area . . . is typically the fee we charge for our services.

In most instances . . . Realtors derive their income from a commission on the sale price of the property and are not compensated unless a sale occurs. Listing brokers collect the commission from the seller at closing and then divide it with the broker who represents the buyer.

Under Connecticut law . . . commissions are not fixed and may be negotiated between the seller and the seller's broker or agent.

The Pearce Company . . . has a standard commission of 6%.

Given the investments . . . of time, money and expertise that my firm and I will make on your behalf, particularly in the current difficult market environment, we consider that commission to be justified.
Real Estate Conveyance Tax

The State of Connecticut and its municipalities . . . impose a tax, paid by the seller, on the transfer of real property.

The state tax is . . . .one half of 1% of the price paid for properties selling for up to $800,000 and 1 % of any amount above $ 800,000.

The municipal tax is . . . one quarter of 1% of the sale price in towns in my market area except for Hamden and New Haven which collect a .5% tax.

Thus, you can expect to pay . . . between .75% and 1% of your gross proceeds, depending on where your property is located.
Attorney's Fee

The seller's attorney fee should be quite modest . . . since it's the buyer's attorney who does the lion's share of the work on most transactions.

Your Attorney will . . . prepare a deed for transfer of the property to the buyer . . . arrange for the payoff of your existing mortgage . . . distribute commission checks to both Realtors . . . and deliver a check for the net proceeds of the sale to you.

Ask your attorney what the standard fee is for a closing.