You know what your house might sell for. The number you actually need is different: what lands in your account after everyone else at the closing table gets paid.
In Connecticut that gap is bigger than most sellers expect. The state and your town both take a conveyance tax, your attorney and agent get paid, your mortgage is paid off to the day, and a handful of small credits get settled. Here is how each piece works and how to estimate your own number before you list.
The short version: Your net proceeds are the sale price minus your selling costs and minus everything you owe on the house. In Connecticut the seller pays the conveyance tax, which on most homes is 0.75% to the state plus 0.25% to the town, or about 1% of the price. All in, Connecticut sellers often land around 6 to 7 percent of the sale price in selling costs, depending on the deal.
Every seller's closing statement comes down to one line of math:
Sale price − selling costs − mortgage and lien payoffs ± closing adjustments = what you walk away with.
If you are planning to buy your next home before this one sells, this is the same number a lender works from. We walk through that side in how much equity you need for a bridge loan in Connecticut.
Connecticut charges a tax when real estate changes hands, and the seller pays it at closing. Your attorney collects it from your proceeds and files the return with the town clerk when the deed is recorded. It has two layers that add together.
The tiers work like tax brackets. A higher price only pays the higher rate on the dollars above each line, not on the whole sale.
Every town charges a base rate of 0.25% of the price. Some towns, mostly ones the state designates as targeted investment communities, add up to another 0.25%, so up to 0.5% total. Your attorney or the town clerk can confirm your town's rate in one phone call.
The Connecticut legislature's research office puts the combined range at 1% to 2.75% of the price, depending on the town and the property (OLR report 2020-R-0020).
That second example is why Fairfield County sellers should run the math early. Crossing $800,000 doesn't just raise the tax; it raises the rate on every dollar above that line.
Some transfers are exempt under state law. If you think one applies to you, ask your attorney before you plan around it.
Usually the biggest line. Commission is negotiable, and how the buyer's agent gets paid is now negotiated separately from your listing agreement. Read your listing agreement for the exact number rather than guessing.
Connecticut closings are run by attorneys, and most sellers hire their own. Your attorney prepares the deed, orders your mortgage payoff, handles the conveyance tax return, and makes sure the old mortgage is released from the land records after closing.
Your payoff is not the balance on last month's statement. Interest runs until the day the payoff arrives, so the payoff letter shows a daily figure. If you have a HELOC, it gets paid off and closed too, even with a zero balance, because the line is still recorded against the house.
Here is a simple illustration. It is not a quote, and your agent and attorney will give you your real number.
Three things move this number most: the commission, because it is the biggest percentage; your sale price relative to the $800,000 line, because of how the state tax steps up; and any credit you give the buyer after the inspection.
At closing, the buyer's funds go to the closing attorney. Your mortgage and any other liens are paid first, and your share goes out from the attorney's trust account.
Ask your attorney ahead of time when to expect the wire and confirm the wire instructions by phone, never by email alone. Wire fraud aimed at closing proceeds is real.
If your next purchase depends on this money, the timing matters. Closing on both homes the same day is possible but tight, and one delay on either side can push both.
Most move-up sellers in Connecticut have their next down payment sitting inside the house they are selling. That is the problem a bridge loan solves. A Connecticut bridge loan lets you use that equity now, and the net proceeds from your sale pay it off later.
The lender sizes a bridge from the same math above. Combined loans are typically capped at 70% of your current home's value, and up to 80% case by case.
If you would rather make a true all-cash offer, our Cash Offer program buys the home first and you sell second. For the full menu of options, see buy before you sell in Connecticut.
If you're buying your next home too, start with a quote. It takes about 2 minutes, with no Social Security number and no hard credit pull. See your options here, or run your own numbers in the bridge loan calculator.
We're a family-owned Connecticut lender, based in Monroe since 1998, with a 4.9-star rating across 450+ Google reviews. We lend in Connecticut, Massachusetts, and Rhode Island.
The seller. The state and town conveyance taxes come out of the seller's proceeds at closing, and the seller's attorney files the return when the deed is recorded.
In a town with the usual 0.25% local rate, about $6,000: $4,500 to the state (0.75%) and $1,500 to the town. Towns with a higher local rate pay more.
All in, Connecticut sellers often land around 6 to 7 percent of the sale price, including agent commission, the seller's attorney, the state and town conveyance tax, and prorations and credits. It is a general estimate; your agent and attorney give you your actual number.
Yes. The state rate is 0.75% on the first $800,000 of the price and 1.25% on the portion above that, up to $2.5 million. Only the dollars above $800,000 pay the higher rate.
Yes. That is how a bridge loan is designed to work. You buy first using your current home's equity, and the net proceeds from the sale pay the bridge off at closing.
Written by Gaetano Ciambriello, CEO of AFC Mortgage Group (NMLS #1783508).
AFC Mortgage Group LLC | NMLS #2801 | Monroe, CT | Equal Housing Lender.
This article is for educational purposes only and is not a commitment to lend. It does not quote or guarantee any rate, term, or approval, and it does not constitute financial, tax, or legal advice. Program guidelines, terms, and availability vary and are subject to change. All loans are subject to credit approval, property approval, and Approval Team review.
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