What closing costs should I expect?

June 21, 2018

 

UPDATE: NYS 2020 budget has updated the mansion tax rate. Take a look here to see how it has increased. 

 

As a first time buyer or seller in NYC, the idea of closing costs, and what you can expect to pay for specific types of real estate transactions (coop vs condo vs single/multi family) can be confusing.

 

Buyer Closing Costs

 

 

Coop closing costs are relatively straight forward and always lower than for condos. For properties under $1 million, closing costs will be roughly around $8500; over $1M, it is this amount plus 1% of the purchase price. This is because aside from the mansion tax, coop closing costs are mostly flat fees not tied to value,  such as loan origination fees which vary by bank, attorney's fees, certain recording fees, and board application fees.

 

Condo and townhouse closing costs are higher because in addition to these flat fees (and mansion tax, if applicable), condo buyers must purchase title insurance which is usually 0.5-0.8% of the purchase price. For condo purchasers who are financing, the costs are even greater as there are significant mortgage recording taxes (1.8 or 1.925% fo the financed amount) which also gets tacked on. 

 

The following chart outlines most of the costs and compares the two types of properties. Please also refer to our detailed breakdown of closing costs for coop, condo, and townhouses.

 

 

 

Seller Closing Costs

 

Sell-side closing costs will be significantly higher than buy-side, largely due to broker fees. Since sellers pay for broker fees on both sides of the service, they are on the hook for a full 6% commission, in addition to other closing costs. The difference in condo and coop closing costs is only significant if the coop has a flip tax, which would make that more expensive. 

 

 

 

 

 

 

 

Please reload

November 8, 2019

September 20, 2019

Please reload

Explore Other Recent Posts
1/7

Isil Yildiz Team

 

Compass 

110 5th Avenue

New York, NY 10011

(P) 985-714-4470

isil@compass.com

  • Facebook Classic
  • LinkedIn Classic
  • Instagram Social Icon
  • YouTube Social  Icon

Contact Us

Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdraw without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. Exact dimensions can be obtained by retaining the services of an architect or engineer. This is not intended to solicit property already listed.