Located between New York City and Boston, Connecticut is the perfect destination for those looking for a quieter, more laid-back lifestyle away from the hustle and bustle of the cities. It’s also popular for quick getaways among outdoor lovers and weekend vacationers from the cities. Ranked as the 16th best state in terms of quality of life by U.S. News, Connecticut offers residents a vibrant arts and culture scene, prestigious educational institutions, and top industries in the finance, manufacturing, healthcare, and insurance sectors.
While other areas have experienced a slowdown, the Connecticut real estate market remains in high demand. This is driven by a low housing inventory and shorter times a home is listed for sale on the market. A recent Connecticut Insider article reports that 48.6% of homes in Connecticut were sold over the asking price last year. Average home prices have increased from $319,000 in January 2022 to $351,000 in January of this year. With the housing supply still low, the current state of the seller’s market doesn’t show any sign of waning. And the higher selling prices benefit the real estate industry, and agents are seeing their commissions grow. So how much commission does a realtor make in CT?
How do real estate agent commissions work?
A buyer’s agent represents the buyer, puts in offers, and negotiates on behalf of the buyer. At the closing of the real estate transaction, all the necessary legal documents are processed, funds from the sale of the property are transferred, and ownership of the property is transferred from the seller to the buyer. Also, the agreed-upon commission is deducted from the seller's proceeds at the time of closing. That commission is further divided between the seller’s agent and the buyer’s agent.
What is the average realtor commission in Connecticut?
The exact percentages vary, but it’s common for the commissions to range anywhere from 5% to 6% of the selling price. But keep in mind that commission fees and rates are 100% negotiable. The commission is paid out when the deal is done or at the closing of the real estate transaction. The seller’s agent and the buyer’s agent share the commission. More often, it’s split evenly between the two agents. However, agreements may vary, and it’s common practice for newer agents to get a lesser percentage.
What services does the realtor commission cover?
If you’re the buyer, your agent is responsible for finding homes that meet your criteria. They may attend open houses and showings with you. They also handle all the paperwork, put in offers, and negotiate the terms and prices on your behalf.
Who pays the commission on the sale of a home?
Why is the commission-based model used in real estate?
What is the difference between an agent and a broker?
A real estate broker has to complete additional training and licensing requirements. They do the same job as agents but can work independently without higher supervision. Brokers can employ different agents to work for them. In addition to fulfilling the same responsibilities as an agent, brokers can provide services such as real estate development, investment, property management, and other specialized areas of the industry.