Closing Privileges In New York City


New York State is home to some of the most expensive Real Estate. With respect to closing costs, it comes in second which is not surprising to many. In the Empire State, homebuyers can reasonably expect to spend between 3.81% to 5.08% of their property's purchase price to cover closing costs.

New York Average Closing Costs 


In New York you can expect to pay from $200,000 to upwards of $1,000,000 for Real Estate properties. Within an investment of approximately $350,000, you might expect to pay approximately $4,900 before taxes.

In the city, you would invest in property taxes and New York City's mortgage tax which can be anywhere within the realm of 1.80% to 2.80% of your investment — approximately $15,000 in closing costs after taxes.

New York City Mansion Tax


For buyers

If you're investing in a home for $1,000,000 or more in New York City, your investment is subject to a mansion tax; it is just 1% of your purchase price and will need to be paid within 15 days of closing.

For sellers

You will expect to have the luxury of paying the New York State and New York City transfer tax.

Who Pays?

In New York closing costs are mutual between buyer and seller.

Buyers 

Condos, Townhouses, & Single-Family Homes

  • Attorney: Variable
  • 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: Variable
  • Mortgage Title Insurance: Variable
  • Municipal Search: $350 - $500
  • Credit Report Fee: $10.10 for a single report; $15.20 for a joint report
  • New York City mansion tax: 1% of purchase on sale price in and over $1,000,000 
  • New York City mortgage tax — Payable by borrower 
    • Mortgage of up to $500,000: 1.80% 
    • Mortgage of $500,000+ on 1 to 3 family residential properties: 1.925%
    • Mortgage on other properties of $500,000+: 2.80%
  • Miscellaneous Condominium Fees: Variable

Co-op Fees:

  • Lien search: $250 - $350 
  • UCC-1 Filing Fee: $100
  • Recognition Agreement fee: $200+
  • Miscellaneous Co-op fees: Variable  

Sellers 

For Condos, Townhouses, & Single-Family Homes

  • Broker: Usually 6%
  • Attorney: Variable
  • Processing Fee: $450+
  • New York City transfer tax: 
    • Residential:
      • Properties of up to $500,000: 1%
      • Properties of $500,000+: 1.425%
    • Commercial:
      • Properties of up to $500,000: 1.425%
      • Properties of $500,000+: 2.625%
  • Administrative Fee
    • Residential deed transfers: $75
    • Commercial deed transfers: $165
  • New York State transfer tax: $4 per $1,000
  • New York State equalization fee: $75
  • Pickup or payoff fee: $250 - $500
  • UCC-3 Filing Fee: $100
  • Miscellaneous Condominium fees: Variable 

Co-op Fees

  • Co-op Attorney: Variable
  • Administrative Fee for non-deed transfers: $50 
  • Flip tax: 1% to 3% of purchase price; if applicable
  • Stock transfer tax: $0.05 per share
  • Move-out fee: Variable
  • Miscellaneous co-op fees: Varies 

Condos vs Co-ops

Co-ops make up 75% of housing in New York City. So when you're buying a co-op apartment unit, you're an investor—not an owner. This is because condos and houses provide deeds, whereas with a co-op you're buying shares (making you an investor). Co-ops are owned by corporations so for each unit, shares are given.

Seller

These will intimate closing costs for buyer and seller. As a seller, you will expect to pay a flip-tax, stock transfer tax, move-out fee, and miscellaneous co-op fees along with the traditional city and state fees.

Buyer

If buying, you will need to provide proof of funds which will cover up to 2 years of fees and mortgage payments after closing costs.
Closing Privileges In New York City Closing Privileges In New York City Reviewed by Alex Sung on May 09, 2020 Rating: 5

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