In this episode, John and Jonathan discuss everything to do with closing costs in NYC for both buyers and sellers.
What Are The Closing Costs In NYC? How Much Are They?
- Closing costs in NYC are additional fees and taxes that are required to be paid at the time of closing.
- Closing costs in NYC range between $5,000 on a co-op to over 10% for buyers, and between 7% – 10% for sellers.
- Buyer closing costs in NYC are higher if you are purchasing new construction or you are financing your purchase with a mortgage, and are lower if you purchase a resale or co-op residential property.
- Seller closing costs are higher if you’re selling a co-op, mostly due to the flip tax that many co-ops charge.
Buyer Closing Costs
- Buyer closing costs generally fall between 1.5% – 10% of the purchase price, and may include:
- Mansion Tax: A one-time tax of between 1% – 3.9% for all sales of $1M+, paid by buyers.
- Mortgage Recording Tax: Around 2% of the total loan amount, excluding co-ops.
- Title Insurance: A one-time fee of between 0.6% and up of the total purchase price paid at closing, excluding co-ops.
- Buyer’s Attorney ($2500-$4000)
- Additional Fees Relating To A New Development
- NYC NYS Transfer Taxes
- Developer’s Attorney’s Fee
- Contribution to the reserve fund (1-3 months of common charges)
- Other Costs
- Seller’s Attorney Fee
- UCC-1 Filing Fee
- Bank Attorney Fee
- Bank Loan Origination Fee
- Mortgage Application & Processing Fee
- Credit Report & Employment Verification
- Title Search & Recording Fees
Seller Closing Costs
- Seller closing costs generally fall between 7% – 10% of the sale price, and may include:
- Real Estate Commission: Generally 5-6% of the total sale price.
- NYC and NY State Transfer Taxes: Around 2% of the sale price.
- NYC Real Property Transfer Tax rates are 1% for sales of $500k or less and 1.425% for sales above $500k.
- The NYC Transfer Tax is usually paid by the seller, accompanied by a filing fee of $100.
- New York State charges sellers a transfer tax of 0.4% of the sale price for sales of below $3M, and 0.65% of the sale price for sales above $3M.
- Flip Taxes: Levied by some, but not all, co-ops, generally anywhere from 1% – 2% of the sale price.
- Seller’s Attorney
- Move Out and Deposit Fees
- Additional Fees
- Managing Agent Fee (for the closing itself)
- Payoff Bank Attorney / Payoff Bank Fees / Loan Satisfaction Fee
- Common Charge & Real Estate Tax Adjustment
- UCC-3 Filing Fee ($50-$75)
Why We Host This Podcast:
We have been in this business long enough to know that knowledge is power. That’s why we conduct an in-depth analysis of the Manhattan real estate market every month, quarter, and year and provide an easy-to-understand synopsis of the full report in several different formats – all so you can stay informed.
Our team of experienced real estate professionals closely monitors market trends and provides our clients with the latest and most relevant information available. With this information, our clients are able to make informed decisions about buying and selling properties in Manhattan, which helps them stay ahead of the curve and make the most of their real estate investments.
Understanding the trends and changes in the market can help you make informed decisions. You gain insights into supply and demand, pricing, and market conditions that can influence the value of your property. Just by being aware of market trends and conditions, you’re better off than most other buyers and sellers, and you can make strategic moves that can lead to a successful real estate transaction.
If you’re considering buying or selling a Manhattan property, now is the time to take action. Our team of expert real estate agents and brokers can help guide you through this market, leveraging our extensive knowledge and experience to help you make informed decisions.
So, why wait? Reach out to us today and let us help you achieve your real estate goals!
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