Closing costs can sneak up on you, especially in a high‑value Greenwich sale. If you are buying or selling here, you want a clear picture of who pays what, how much to budget, and where you can negotiate. This guide breaks down the typical line items for Connecticut, highlights Greenwich customs, and gives you a simple way to estimate totals. You will also get a practical timeline and a checklist to keep your closing smooth. Let’s dive in.

Closing costs at a glance

Closing costs are the fees and prepaid items required to transfer ownership and fund a loan. Some are fixed amounts, others scale with price. In Connecticut, several items are customary, but many can be negotiated in your contract.

Buyer costs

• Earnest money deposit credited at closing.
• Down payment due at closing, separate from closing costs.
• Loan fees if financing, such as application, underwriting, credit report, origination, and any discount points.
• Appraisal and inspections, including general, wood‑destroying insect, radon, or specialty inspections.
• Title and settlement items, including lender’s title policy and closing or escrow fees.
• Title search and endorsements as required.
• Recording fees for the mortgage and related documents.
• Prepaid items and escrows, such as homeowner’s insurance and prorated property taxes.
• HOA or condo transfer fees and any required reserves, depending on association rules.
• Survey if required by your lender.

Seller costs

• Real estate broker commission, typically the largest expense and commonly 5 to 6 percent, negotiated in the listing agreement.
• Owner’s title insurance premium in many Connecticut transactions, subject to contract.
• State conveyance or transfer taxes if applicable by law and custom.
• Attorney fees for the seller’s counsel.
• Payoffs for any mortgages or liens, plus required lien releases.
• Prorations for property taxes and HOA dues through the closing date.
• Repairs or credits negotiated after inspections.
• Miscellaneous items such as courier or wire fees and document preparation.

Who pays what in Connecticut

Customs vary by deal, but here is what you will often see in Connecticut and Greenwich:

• Owner’s title insurance is commonly paid by the seller, while the buyer pays the lender’s policy. This is negotiable and should be confirmed in your contract.
• The buyer typically pays mortgage recording fees. Deed recording fees and any transfer taxes are subject to state rules and local practice. Confirm current rules with the Connecticut Department of Revenue Services and the Greenwich Town Clerk.
• Property taxes are prorated to the day of closing based on the town’s billing cycle and mill rate. The Greenwich Assessor and Tax Collector publish current rates and due dates.

Estimate your total

You can build a reliable early estimate in five steps:

1. List buyer or seller line items. Separate fixed fees from percentage‑based items.
2. Get quotes for attorney, title, and lender fees, especially for jumbo financing.
3. Apply percentage ranges where needed. Buyers often plan 2 to 4 percent of price for closing costs when financing, excluding down payment. Sellers often plan 6 to 8 percent including commission.
4. Add prorations and escrows for taxes and insurance.
5. Ask your title company for a preliminary Closing Disclosure for both sides.

If you are paying cash, your buyer total is usually lower because you avoid lender fees. If you are using a jumbo loan, underwriting and appraisal costs can be higher.

Greenwich high‑value examples

Use these planning examples as a starting point, then replace with quotes from your lender, attorney, and title company.

• $2,000,000 sale

  • Seller commission at 5.5 percent: $110,000
  • Seller other closing costs at 1.5 percent: $30,000
  • Estimated seller total: $140,000, about 7.0 percent
  • Buyer closing costs at 2.5 percent: $50,000

• $5,000,000 sale

  • Seller commission at 5.5 percent: $275,000
  • Seller other closing costs at 1.5 percent: $75,000
  • Estimated seller total: $350,000, about 7.0 percent
  • Buyer closing costs at 2.5 percent: $125,000

• $10,000,000 sale

  • Seller commission at 5.5 percent: $550,000
  • Seller other closing costs at 1.5 percent: $150,000
  • Estimated seller total: $700,000, about 7.0 percent
  • Buyer closing costs at 2.5 percent: $250,000

These examples show how percentage items scale with price. Commission dominates seller totals, while lender fees and title items matter more for financed buyers.

Costs that can run higher

Luxury sales in Greenwich can require extra diligence. Build room for:

• Higher attorney fees for complex negotiations and escrow management.
• Premium title endorsements or additional coverage for large estates.
• Full boundary surveys, engineering, or environmental reports.
• Specialist inspections, such as pool, chimney, or advanced systems.
• Larger dollar escrows for property taxes and insurance because the underlying bills are higher.
• State conveyance or transfer taxes if applicable under current law.

Timeline to closing

A smooth Greenwich closing follows a consistent rhythm:

• Pre‑contract. Secure a strong pre‑approval if financing. Price inspections and appraisal.
• Contract signed. Deposit earnest money. Apply for your loan. Sellers order payoff statements. Your agents coordinate required documents.
• Due diligence. Complete inspections, negotiate repairs or credits, and review disclosures.
• Two to three weeks before closing. Title search and survey finalized, title exceptions cleared, lender conditions satisfied, and any HOA requirements met.
• Closing day. Wire funds, sign documents, record the deed, and disburse proceeds.

Negotiation levers

Several line items are flexible. Consider these tools:

• Seller credits toward buyer closing costs in exchange for price or timing.
• Which party pays the owner’s title policy, a common bargaining chip in Connecticut.
• Commission structure, negotiated in the listing agreement.
• Repair requests, which can be handled as a credit rather than a contractor rush.
• Closing date selection, which affects tax prorations and escrow amounts.
• Financing terms, such as points, to strengthen an offer.

Documents to gather

Staying organized saves time and money. Start this checklist early:

• Fully executed purchase agreement and all addenda.
• Payoff statements for all mortgages and liens.
• HOA or condo documents, bylaws, financials, and transfer fee schedule.
• Recent property tax bills and any municipal assessments.
• Title commitment, survey, and any prior reports if available.
• Required Connecticut seller disclosures.
• Loan Estimate and draft Closing Disclosure from your lender.

Wire safety

• Only use wiring instructions you verify by calling the title or settlement agent directly at a known phone number.
• Be alert to email changes or last‑minute requests. When in doubt, stop and confirm by phone.
• Expect added verification steps for large transfers that are common in Greenwich.

Condo and HOA notes

Condo associations in Greenwich may charge a transfer fee and can require a capital contribution or reserve. Buyers should review the association’s rules, budgets, and recent meeting notes. Sellers should order documents early so there are no surprises. Align on who pays which association fees in your contract.

Taxes and prorations

Property taxes in Greenwich are prorated to the closing date based on the town’s schedule. The buyer usually takes over taxes that accrue after closing. The exact mill rate and due dates are published by the Greenwich Assessor and Tax Collector. For sellers, capital gains are a tax matter handled after closing, not a closing fee. Speak with a CPA about potential federal capital gains, the Net Investment Income Tax if applicable, and Connecticut state income tax.

Get precise numbers

Rules and fees can change. The most accurate path is to get written estimates.

• Ask your lender for a detailed Loan Estimate and an updated fee breakdown for jumbo financing if needed.
• Request an itemized title quote that includes both the lender’s and owner’s policies, endorsements, and settlement fees.
• Get attorney fee quotes from local real estate counsel experienced in Greenwich closings.
• Ask for a preliminary Closing Disclosure estimating both buyer and seller sides so you can see the whole picture.

A clear plan helps you budget, negotiate with confidence, and avoid last‑minute surprises. If you want a precise estimate and a strategy that fits your goals, our principal‑led team will guide you through each line item and timeline, keep documents organized, and coordinate every detail. Connect with GEN Next Real Estate to get started.

FAQs

What are typical buyer closing costs in Greenwich?

• Buyers using conventional financing often plan 2 to 4 percent of the purchase price for closing costs, excluding the down payment, then replace estimates with lender and title quotes.

Who pays the owner’s title insurance in Connecticut?

• It is commonly paid by the seller, while the buyer pays the lender’s policy, but your contract can reassign this. Confirm with your title company and attorney.

Are Connecticut transfer taxes part of seller costs?

• Connecticut administers conveyance or transfer taxes. Responsibility can be negotiated, but sellers often pay statutory transfer taxes. Confirm current rules before you sign.

How are Greenwich property taxes handled at closing?

• Property taxes are prorated to the closing date. The buyer typically covers taxes accruing after closing. Check the Greenwich Assessor for current mill rates and billing cycles.

How can a seller estimate net proceeds on a luxury sale?

• Start with price, subtract commission, seller closing costs, and mortgage payoffs. Then plan for potential tax liabilities with your CPA. Ask your title company for a seller net sheet.

Do luxury sales trigger special Connecticut taxes?

• Connecticut does not have a separate statewide mansion tax apart from conveyance taxes. Check with state guidance and your attorney for any updates or local assessments.

How can I avoid wire fraud during closing?

• Call your title or settlement agent to verify instructions, never rely on emailed changes, and use secure channels. Pause and confirm by phone before sending any funds.