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
- Appraisal
- 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)
Resources
- Our collection of resources for buyers and sellers
- John’s Page
- Jonathan’s Page
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