NYC Closing Costs Explained: What Buyers & Sellers Pay

Closing costs in New York City are among the highest in the country, and they catch many buyers and sellers off guard. Whether you are purchasing a co-op in Jackson Heights, a condo in Astoria, or selling a multi-family in Jamaica, understanding every fee before you sign a contract is essential. I'm Nitin Gadura of Gadura Real Estate, and here is a complete breakdown of what buyers and sellers pay at closing in NYC.

Buyer Closing Costs in NYC

Buyer closing costs in New York City typically range from 2-5% of the purchase price for condos and houses, and 1-3% for co-ops. Here is every major cost:

Mortgage Recording Tax

This is the largest buyer closing cost in NYC and one that often surprises first-time buyers. The mortgage recording tax applies to condos and houses (not co-ops) and is calculated on the loan amount:

• Loans under $500,000: 1.8% of the mortgage amount
• Loans of $500,000 or more: 1.925% of the mortgage amount

Example: On a $600,000 mortgage, the mortgage recording tax would be $11,550. This tax does not apply to co-op purchases, which is one reason co-op closing costs are significantly lower.

Title Insurance

Title insurance protects against defects in the property's title history. It is required for condos and houses but not applicable to co-ops (since you are buying shares, not real property). Expect to pay approximately $4,000-$7,000 depending on the purchase price.

Attorney Fees

Real estate attorneys are customary in NYC transactions. Buyer attorney fees typically range from $2,000 to $3,500 for a standard residential purchase. More complex transactions may cost more.

Mansion Tax

For purchases of $1 million or more, buyers pay a progressive mansion tax:

• $1,000,000 - $1,999,999: 1.0%
• $2,000,000 - $2,999,999: 1.25%
• $3,000,000 - $4,999,999: 1.5%
• $5,000,000 - $9,999,999: 2.25%
• $10,000,000 - $14,999,999: 3.25%
• $15,000,000 - $19,999,999: 3.5%
• $20,000,000 - $24,999,999: 3.75%
• $25,000,000+: 3.9%

Other Buyer Costs

• Appraisal fee: $500-$1,500
• Home inspection: $400-$800 (houses and condos)
• Lender origination fees: 0-1% of loan amount
• Credit report and application fees: $100-$300
• Co-op application fees: $500-$1,000 (co-ops only)
• Move-in deposit: $500-$1,500 (co-ops and condos, usually refundable)

Seller Closing Costs in NYC

Sellers in New York City pay significantly more in closing costs than in most other markets. Total seller costs typically run 8-10% of the sale price. Here is the breakdown:

Real Estate Commission

The largest seller expense is the real estate commission, which is negotiable but typically ranges from 5-6% of the sale price. This commission is split between the listing agent and the buyer's agent.

NYC Transfer Tax

The New York City real property transfer tax is paid by the seller:

• Sales under $500,000: 1.0% of the sale price
• Sales of $500,000 or more: 1.425% of the sale price

New York State Transfer Tax

In addition to the NYC transfer tax, sellers pay the NYS transfer tax of $2 per $500 of the sale price, which works out to 0.4%. For residential sales of $3 million or more, there is an additional 0.65% supplemental tax.

Other Seller Costs

• Attorney fees: $2,000-$3,500
• Co-op flip tax: If applicable, typically 1-3% of the sale price (varies by building)
• Mortgage payoff and satisfaction: Varies based on outstanding balance
• Outstanding liens or violations: Must be cleared before closing
• Move-out deposit: $500-$1,000 (co-ops and condos)

Co-op vs. Condo vs. House: Closing Cost Comparison

Closing costs vary significantly depending on the property type:

• Co-op buyers: Lowest closing costs (1-3%) because there is no mortgage recording tax, no title insurance, and no deed recording. This is a major advantage of co-op ownership.
• Condo buyers: Highest closing costs (3-5%) due to mortgage recording tax and title insurance requirements.
• House buyers: Similar to condo costs (3-5%) with the same taxes and insurance requirements.

For a detailed comparison of co-ops and condos, see our Co-op vs Condo FAQ page.

How to Reduce Your Closing Costs

• Buy a co-op: The savings from no mortgage recording tax alone can be $5,000-$15,000
• Negotiate seller concessions: In a buyer's market, sellers may agree to pay a portion of your closing costs
• Shop for title insurance: Rates can vary between providers
• Compare lender fees: Origination fees and points vary significantly between lenders
• Ask about CEMA (Consolidation, Extension, and Modification Agreement): If the property has an existing mortgage, a CEMA can significantly reduce the mortgage recording tax

Get a Personalized Closing Cost Estimate

Every transaction is different, and closing costs depend on the purchase price, property type, financing, and building-specific fees. Nitin Gadura at Gadura Real Estate provides detailed closing cost estimates for every property his clients consider, so there are never any surprises at the closing table.