Connecticut closing costs

Plan to spend 2% to 5% of the home’s price if you’re buying in the Constitution State

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You’ve found the home of your dreams in Connecticut and you’re excited to make an offer. But before you dive in, understand how to handle and possibly cut down on closing costs to make buying your dream home more affordable. So, how much are closing costs in Connecticut?

The average home price in the Constitution State is $419,149, and Connecticut buyers pay an average of 2.10% of a home’s value in closing costs. That means buyers pay about $8,821 in closing costs (including taxes). Here’s how to save on closing costs in Connecticut before you get the keys.


Key insights

The average closing costs in Connecticut are 2% to 5% of the home’s purchase price.

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Buyer closing costs in Connecticut usually consist of one-time fees like loan origination fees, appraisal costs, title insurance and escrow fees.

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Sellers can contribute to some closing costs in Connecticut, which can help reduce your overall homebuying costs.

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What are closing costs in Connecticut?

While the seller might cover some closing costs, it is wise to budget 2% to 5% of your home’s purchase price for closing costs.

When you buy a home, the listing price is not your final bill. Closing costs are the often-overlooked expenses that accompany the purchase of a new home. Closing costs are fees and expenses, beyond the actual price of the home, that buyers and sellers pay during a real estate transaction.

It is important to budget for them as they can add up to thousands of dollars. These costs cover services rendered, such as appraisal fees, title insurance, attorney fees, property taxes and more.

What closing costs are Connecticut buyers responsible for?

Buyers in Connecticut are typically responsible for loan origination fees, appraisal costs, title insurance, escrow fees, property taxes and more. These costs can vary depending on the specific circumstances of the transaction, but here’s what you can expect to see in your Loan Estimate.

If the home is $300,000, your closing costs could range from $6,000 to $15,000.
  • Loan origination fees: These fees cover the cost of processing the loan application and are usually calculated as a percentage of the total loan amount.
  • Appraisal costs: Lenders require an appraisal to assess the value of the property, and buyers are typically responsible for this expense.
  • Title insurance: Both lender's title insurance (to protect the lender) and owner's title insurance (to protect the buyer) may be required and are typically paid by the buyer.
  • Escrow fees: Escrow services, which facilitate the transfer of funds and documents between the buyer, seller and other parties, often come with associated fees.
  • Property taxes: Buyers may need to pay a portion of the property taxes at closing, depending on the time of year and the terms of the sale.
  • Home inspection fees: While optional, a home inspection is highly recommended and comes with a cost that buyers generally pay out of pocket.
  • Recording fees: These fees cover the cost of officially recording the sale with the local government.
  • Prepaid expenses: Buyers may need to prepay certain expenses such as homeowners insurance, mortgage interest and property taxes, at closing.

It's essential for buyers in Connecticut to carefully review and understand all potential closing costs associated with their home purchase. Working closely with a real estate agent and lender can help clarify these expenses and ensure a smooth closing process.

Who pays closing costs in Connecticut, buyer or seller?

In Connecticut, the allocation of closing costs between the buyer and seller is typically negotiable and can vary based on local customs, market conditions and the terms of the purchase agreement.

Sellers in Connecticut commonly bear expenses such as real estate agent commissions, title transfer fees, home warranty costs and any outstanding liens or judgments on the property.

Due to a recent court settlement, traditional fixed-rate real estate commissions are changing. Starting in August 2024, real estate commissions may be more negotiable, potentially reducing costs for both buyers and sellers.

» COMPARE: Mortgage lenders

How much are closing costs in Connecticut?

While closing costs in Connecticut average 2.10% of the home’s price, it is a good idea to know how these fees are broken down. You will receive an itemized list of closing costs during the closing process, which occurs shortly before the completion of the real estate transaction. Here’s what to expect for your state:

*According to a 2023 survey by the National Association of Realtors

» LEARN: Mortgage closing costs vs. prepaids: what’s the difference?

How to save on closing costs in Connecticut

When you are already spending thousands of dollars on a down payment and other upfront expenses, saving money on closing costs can significantly lighten the financial burden associated with buying a home. Here are a few ways to save on closing costs in Connecticut:

  • Negotiate with the seller: Especially in a buyer’s market, when buyers have more negotiating room, sellers may be willing to contribute towards the buyer's closing costs.
  • Review the Loan Estimate carefully: Thoroughly review the Loan Estimate provided by your lender, which outlines all the costs associated with the loan. Look for any fees that seem excessive or unnecessary and inquire about them.
  • Opt for a no-closing-cost mortgage: Some lenders offer "no-closing-cost" or "zero-closing-cost" mortgages, where the closing costs are rolled into the loan or the lender covers them in exchange for a slightly higher interest rate. This option can help reduce upfront expenses.

Don’t miss our full guide on which closing costs can be negotiated and learn how to negotiate them.

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    FAQ

    How much are closing costs in Connecticut?

    Closing costs in Connecticut are 2.10% of the home purchase price on average. Buyers pay an average of $8,821 in closing costs (including taxes).

    Are closing costs in Connecticut high?

    Yes, closing costs in Connecticut are higher than the national average of 1.81%.

    What is the average seller’s closing cost in Connecticut?

    On average, sellers in Connecticut pay 3.91%. This percentage can vary depending on if you are in a buyer’s or seller’s market.

    When are closing costs paid in Connecticut?

    In Connecticut, closing costs are typically paid on the day of the property closing, also known as the settlement day. During the closing process, the buyer is expected to provide the necessary funds to cover their portion of the closing costs, which may include fees for various services and expenses related to the real estate transaction.

    Bottom line

    Yes, closing costs in Connecticut can feel expensive, but planning for them upfront can help you reduce the financial headache as you close on your new home. By understanding when these costs are due and being financially prepared, you can navigate the closing process with confidence and ease.


    Article sources
    ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
    1. CoreLogic, “Average Closing Costs for Purchase Mortgages Increased 13.4% in 2021, CoreLogic’s ClosingCorp Reports.” Accessed June 24, 2024.
    2. National Association of Realtors, “Appraisal Survey.” Accessed June 24, 2024.
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