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  • Writer's pictureTaleen Krug

What Are The Closing Costs in NYC?

Purchasing your first home in New York City? Lucky you.

However, buying a home in NYC can be a complex but rewarding process depending on the type of property from condo purchases to condo buildings and single-family homes.

Whether you're a first-time buyer or seller, or need a refresher on buying or selling real property, this guide provides tips and strategies to help you navigate the home-buying process.

Navigating the intricate world of buying or selling a home in the dazzling concrete jungle of New York City can be a wild adventure, filled with a multitude of fees, agent fees, homeowners insurance, inspection fees, hiring a real estate agent, paying a real estate commission, hiring a title company, contracts, escrow agent, move-in and move-out fees, possible real estate attorneys, negotiations and other additional closing costs to conquer. Yes, these are just some of the typical buyer closing costs.

And let's not forget about all those other sneaky closing costs that can catch you off guard in a real estate closing. So buckle up and get ready to dive into the exciting realm of real estate in the Big Apple, but do get ready for expensive closing costs.

Explanation of Closing Costs

Don't get caught off guard when it comes to the closing process and all that goes with it. Closing costs can be trickier than you think. The expenses include the necessary evils of transfer taxes, title insurance, and more as well as the NYC mansion tax.

When it comes to buying or selling, both parties have to dig deep into their pockets in the sale process and cough up closing costs, which can gobble up to a whopping 10% of the purchase price.

In other words, you're going to be spending large amounts of money to get the property you want!

Who Pays Closing Costs?

In a home sale transaction, both the buyer and seller are responsible for paying closing costs, which can include attorney fees that are typically separate for each party, as well as other costs that are divided between all parties involved.

Buyer Closing Costs

When you're ready to purchase your dream condo or townhouse in New York, don't forget about the mortgage recording tax! This is the fee that you'll need to pay to register your mortgage with the state.

Discover the ever-changing rates of mortgage recording tax, tailored to suit your loan amount. From mortgages under $500,000 to those above, including taxes for the vibrant NYC and the whole of NY State. Dive into the world of tax rates on the captivating New York State Department of Taxation and Finance website.

In the process of buying a condo or townhouse, the buyer usually covers the cost of title insurance, which is intended to safeguard against any potential problems related to debt, liens, or claims from previous property owners. The cost of title insurance may vary depending on the number of previous owners of the unit.

The buyer must pay a mansion tax on properties valued over $1 million, with the tax rate increasing as the sale price goes up.

When you decide to purchase a property in a brand new development, not only will you have the joy of becoming a proud homeowner, but you may also find yourself responsible for the transfer tax. This little gem of a fee ensures that the title of the property is transferred into your name, making you the official ruler of your kingdom.

However, fear not! If you choose to buy a property in any other scenario, this delightful cost is happily shouldered by the seller. So, go ahead and embark on your homeownership journey with confidence, knowing that the transfer tax may just be your ticket to becoming the ultimate ruler of your new abode! According to Brian Babst, a licensed associate real estate broker with Compass, it is an extremely rare occurrence, practically unheard of in his 18 years of experience, for a seller to pass the transfer tax to the buyer, with the exception being new development.

Buyers may also be responsible for additional expenses such as home appraisal fees, application and credit check fees, and move-in fees.

Seller Closing Costs

Not only does the seller have to foot the bill for their own listing agent's commission and the buyer's agent's commission, but they also have to handle the transfer tax, regardless of whether they're selling a trendy condo, cozy co-op, or charming townhouse. Don't forget, they'll have to shell out some serious cash for their attorney's fees!

Can You Avoid Closing Costs?

Closing costs: the unavoidable price tag on your dream home. Don't sweat it! Score a home under $1 million and kiss those pesky mansion tax closing costs goodbye. Plus, there's a genius hack: opt for a charming co-op instead of a flashy condo or townhouse and watch those extra expenses for title insurance and mortgage recording tax disappear. Get ready for some genius moves, my savvy buyer!

But know up front there's no way around certain closing costs. Attorney fees, for example, are necessary for NYC, where only attorneys write contracts, not brokers. Brokers prepare transaction sheets, which are handed off to attorneys, and the attorneys convert those business terms into legalize.

When it comes to buying in a new development, watch out for sneaky transfer taxes that may come your way. Do negotiate with the developer to take on this pesky cost. You see, in the past, sellers would normally foot the bill, but in recent years, developers have been digesting this expense themselves. Talk about a great deal.

Closing Costs in New York

The Empire State has various peculiarities, including a lengthy list of expenses to finalize the agreement.

Closing costs can be complex when purchasing a home, as they are influenced by factors such as state, city, and property type.

Did you know that New York State takes second place when it comes to pricey closing costs? It's no wonder, with its extravagant real estate market. Homebuyers in the Empire State are expected to shell out between 2.65% and 3.32% of their property's purchase price for those pesky closing expenses.

New York is known for its taxes, including property taxes and the New York City mortgage tax, which can range from 1.80% to 2.80% of the purchase price. This can result in approximately $13,261.67 in closing costs after taxes.

New York City's Mansion Tax

Buying a lavish home in the Big Apple for $1 million or more? Brace yourself for the New York City mansion tax, a mere 1% of your purchase price that surprisingly packs a punch. You'll have your bill settled in a mere 15 days after the final curtain drops.

Sellers are also responsible for paying fees and a New York State or New York City transfer tax.

Buyers Costs

For condos, townhouses, and single-family homes:

Attorney: Varies

Bank attorney: $650–$750

Bank fees: $350–$750

Application fee: $350

Processing fee: $330

Appraisal fee: $300–$1,500, depending on sale price

Recording fees: $250–$750

Fee title insurance: Varies

Mortgage title insurance: Varies

Municipal search: $350–$500

Credit report fee: $10.10 for a single report or $15.20 for a joint report

New York City mansion tax: 1% of purchase when sale price is $1 million or more

Mortgage of up to $500,000: 1.80%

Mortgage of $500,000 or more on one- to three-family residential building: 1.925%

Mortgage on other properties of $500,000 or more: 2.80%

Miscellaneous condominium fees: Varies

Potential fees for co-ops

Lien search: $250–$350

UCC-1 filing fee: $100

Recognition agreement fee: $200 or more

Miscellaneous co-op charges: Varies


For condos, townhouses, and single-family homes:

Broker: Usually 6%

Attorney: Varies

Processing fee: $450 or more

Properties of up to $500,000: 1%

Properties of $500,000 or more: 1.425%

Properties of up to $500,000: 1.425%

Properties of $500,000 or more: 2.625%

Residential deed transfers: $75

Commercial deed transfers: $165

The New York State transfer tax rate is $4 per $1,000.

New York State equalization fee: $75

Pickup or payoff fee: $250–$500

UCC-3 filing fee: $100

Miscellaneous condominium fees: Varies

Potential fees for co-ops

Co-op attorney: Varies

The administrative fee for Indeed transfers: is $50

Flip tax: 1% to 3% of purchase price, if applicable

Stock transfer tax: $0.05 per share

Move-out fee: Varies

Miscellaneous co-op fees: Varies

Comparison of Closing Costs in New York to National Average

New York, the city that never sleeps, boasts the second-highest closing costs in the entire country, with only Washington, DC surpassing it. And when it comes to the closing cost-to-sale price before taxes, New York proudly claims the fourth-highest spot among all 50 states.

Closing costs for condos and homes are a piece of cake, but when it comes to co-ops, it's a whole different ballgame. Co-ops make up a whopping 75% of housing in the Big Apple!

Cooperatives, or co-ops, are a type of housing where ownership is held by a corporation. When you purchase an apartment in a co-op building, you are acquiring shares of the corporation rather than owning the property directly. In essence, you become an investor rather than an owner.

Sellers pay multiple fees, including a flip tax, stock transfer tax, move-out fee, co-op fees, and city/state fees.


Prepare to dig deep into your pockets if you're buying or selling property in the concrete jungle of New York. With closing costs that rank second highest in the entire country, you'll be shelling out an average of over $10,000 in tax costs alone. By comparing mortgage lenders in New York, you can potentially save money on closing costs.

If you're looking for property in Long Island be sure to hire professional Realtors like Taleene and Ritchie Krug Jr. who can find you exactly what you're looking for in terms of the best home, house, condo, or townhome. Lifelong residents of Long Island, are part of a team with more than 40 years of combined real estate experience. They have a deep understanding of how real estate has evolved through the years which results in a team with unique dynamics and expert negotiating skills being put to work on your behalf. With 20 offices spanning Brooklyn Queens & Long Island, nobody is better equipped to handle your real estate needs.

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