The Cost to Sell Your Home in CT Just Went UP!

A DAY LATE AND SEVERAL DOLLARS SHORT(ER)… the cost of selling your home in Connecticut just got more expensive (and I do mean just). When I started this post at the beginning of last week what I understood to be the most likely tax increases affecting home sellers (many of whom are selling to leave CT due to over-taxation) dawned differently Wednesday morning.  Tuesday  sometime before midnight SB 1239 made its final decent through the House passed as amended (one last time) by Senate and was put on a fast track for “Immediate Transmittal to the Governor”.

See: http://www.homesellingteam.com/conveyancetax.php

At some point over the last couple of weeks and possibly while we were all sleeping, an expert job of repackaging was accomplished by the powers that be and most components of SB 1007 were rolled into this package. That repackaging cost Connecticut home seller’s closing after July 1st 2011 an additional 0.25% of their hard earned equity rerouted to the “Municipal Revenue Sharing Account”. This is an ADDED $625.00 tax on top of existing state and town conveyance taxes on a $250,000 home. This bill also guarantees that the promised sunset of the 2003 “temporary” doubling of the town conveyance tax would in fact never set.

Like a thief becoming accustomed to a new standard of living or an addict after his first taste, there is no such thing as temporary. The municipalities taste of these extra dollars, like an addict’s  thought of as an easy fix , proved to be addictive… increasing and now becoming PERMANENT! The Realtors in Connecticut in conjunction with the Realtors Political Action Committee (RPAC) have been fighting fast and furious and have just suffered one defeat. You, the consumer reading this post, have suffered this defeat as well. Continuing with more great news this bill goes on… the $500.00 property tax credit towards the personal income tax for many filers including a good portion of the elderly on fixed (and now declining) incomes has been reduced to $300.00.

It is NEVER too late to get involved. I would ask you to call your representative (call me if you need their number at home) and ask them what their position was on SB 1007 and what their position is NOW on SB 866. Be sure when you speak with them about SB 866 (also recently very nicely repackaged) that they know it is more than its title reflects - “An Act Considering Connecticut Wine Festivals” and will very likely affect the cost of BUYING a home in Connecticut. If you don’t already see a pattern here the cost of that purchase won’t cost LESS. I am not a political person by nature or politically interested as a general rule. I write this because I am passionate about homeownership. Real estate has always led the recovery in challenging times and I am confident will do so again.

The National Association of Realtors (NAR) estimates that every real estate transaction generates $48,494 in collateral economic activity. Sales equal other sales which create or at a minimum maintain the local work force. With housing prices down and interest rates low affordability is the best it’s been in the past 40 years. Before you decide renting just might be a better option contact your local Realtor and ask about the benefits of homeownership and the wealth building opportunities that come along with owning your own home. In closing… Sandy Schede put it best at the Realtors Day at the Capitol when she stated “Homes are where jobs go at night” so help keep Connecticut employed.