Closing Costs in NYC: What Buyers and Sellers Actually Pay
What are typical NYC closing costs? NYC closing costs run higher than most US markets — typically 4–6% buyer-side and 8–10% seller-side on a residential purchase. Buyer pays mortgage recording tax (1.8% on loans under $500K, 1.925% above), mansion tax on $1M+ homes (1–3.9% tiered, paid at closing in cash), title insurance (~0.5–0.8% of purchase), attorney ($1,500–$3,500), lender fees (0.5–1.5% of loan), inspection ($500–$1K), and 2–6 months of property tax + insurance escrows. Seller pays NYC Real Property Transfer Tax (1% under $500K / 1.425% above), NY State transfer tax (0.4%), commission, attorney, and any co-op flip tax. Use the calculator at /calculators/closing-costs.html for a deal-specific estimate.
Closing costs in New York City and Queens are among the highest in the country. Here is an honest, plain-English breakdown so you can plan ahead. Dollar amounts shown are typical ranges; your own attorney will give you exact numbers for your specific transaction.
Buyer Closing Costs (Typical)
| Item | Typical Amount |
|---|---|
| Mortgage Recording Tax (on loan amount) | ~1.8% under $500k, ~1.925% over — NYC |
| Title Insurance (owner's + lender's) | 0.4% – 0.5% of purchase price |
| Mansion Tax (purchases $1M+) | 1% – 3.9% tiered |
| Attorney Fee | $1,500 – $3,500 flat |
| Lender Fees / Appraisal / Credit | $1,000 – $2,500 |
| Home Inspection | $450 – $800 |
| Recording / Misc. | $300 – $600 |
Seller Closing Costs (Typical)
| Item | Typical Amount |
|---|---|
| NYS Transfer Tax | 0.4% (under $3M) / 0.65% ($3M+) |
| NYC Transfer Tax | 1% (under $500k) / 1.425% ($500k+) |
| Broker Commission (negotiable) | Typically 4% – 6% total, split between brokers |
| Attorney Fee | $1,500 – $3,500 flat |
| Payoff / Satisfaction / Misc. | $500 – $1,500 |
Commission is always negotiable. New York State law does not set commission rates. We discuss ours openly and put it in writing.
Queens vs. Long Island
Long Island closings do not have NYC transfer tax or NYC mortgage recording tax, which meaningfully lowers closing costs. Mansion tax still applies on purchases $1M+ statewide.
How a Broker Helps With Closing Costs
- Structuring offers with seller concessions where appropriate
- Comparing CD (Closing Disclosure) to loan estimate line-by-line before closing
- Referring attorneys, lenders, and title companies with competitive fee structures
- Catching junk fees early
Please consult your New York–licensed real estate attorney for exact closing numbers on your transaction. Your broker coordinates the deal; your attorney computes and certifies the final closing figures.
Informational only; not legal or tax advice. Consult a licensed NY attorney and CPA for your specific transaction. Equal Housing Opportunity. Nitin Gadura, Gadura Real Estate, LLC. (917) 705-0132.