Closing Costs for Buyers and Sellers in New York City, NY

What are Closing Costs?

Once a property purchase in New York City has been finalized, both the buyer and seller must compensate the parties involved in funding, approving, and insuring the sale. These charges and fees are what we call closing costs.

Typically, the buyer’s closing costs include the following:

Mortgage Insurance

Homeowner’s Insurance

Appraisal Fees

Property Taxes

These costs can be added to the buyer’s mortgage amount and paid in installments. The seller’s closing costs, on the other hand, cover ownership transfer fees and commission to their real estate agent. In some cases, buyers are able to negotiate with their new home’s seller to cover some of their closing costs.

Average Closing Costs for Buyers and Sellers in New York City, NY

Buyer closing costs in New York City range from 1.5% to 5% of the purchase price, while seller closing costs can be anywhere between 8% to 10% of the sale price. These costs will also vary depending on whether you are selling a condo or a co-op apartment.

A typical New York City apartment sells at $1.87 million. Given this figure, an NYC buyer can expect to pay around $68,748 (3.7% of sale price) closing costs for a condo, while a co-op apartment buyer would be paying roughly $25,550 (1.4% of sale price). A seller, on the other hand, would have to shoulder closing costs estimated at $153,178 (8.19% of sale price) for a condo and $181,728 (9.72% of sale price) for a co-op apartment.

To have a better idea of how these costs were estimated, below are the average closing costs for both buyers and sellers of condo and co-op apartments in New York City, NY:

AVERAGE CLOSING COSTS FOR BUYERS IN NEW YORK CITY, NY

(Based on $1.87 Million Purchase Price) TOTAL CLOSING COSTS FOR NYC BUYER $68,748 $25,550 Standard Closing Costs NYC For Condo Buyers For Co-Op Buyers NYS/NYC Mansion Tax (1%) $18,700 $18,700 Title Insurance $7,500 NA Buyer’s Attorney $2,500 $2,500 Move-In Deposit $500 $500 UCC-1 Filing Fee NA $100 For NYC Buyers Seeking Financing NYC/NYS Mortgage Tax – (2.05-2.80%) $35,998 NA Bank Attorney Fee $750 $750 Bank Loan Origination Fee $750 $750 Appraisal $450 $450 Mortgage Application & Processing Fee $500 $500 Credit Report & Employment Verification $100 $100 Title Search & Recording Fees $1,000 $1,000 Financing/Recognition Agreement Fee NA $200 Additional Costs for Buying of New Construction in New York City, NY NYC Real Property Transfer Tax (RPTT) & Filing Fee (1-1.425%) $26,748 $26,748 NY State Transfer Tax (0.4%) $7,480 $7,480 Seller’s Attorney Fee $2,500 $2,500

Breakdown of New York City Closing Costs

New York City closing costs for buyers and sellers of condo and co-op apartments differ from one another, and so we have compiled a comprehensive guide that lists all of the standard closing costs for every scenario to help you come up with a more accurate estimate of how much you would need to pay for, whether you are in the market to buy or sell.

Closing Costs for Buyers in New York City, NY