NYC Buyer Closing Costs, Explained

In New York City, buyers should budget for closing costs on top of their down payment. The total depends on whether you're buying a co-op or a condo, the purchase price and whether you're financing.

Costs most buyers pay

• Real estate attorney fees — in New York, both buyer and seller are typically represented by an attorney.
• Mansion tax — a New York State tax paid by buyers on residential purchases of $1 million or more, starting at 1% and rising in tiers for higher prices in New York City.
• Lender fees, appraisal and bank attorney fees if you are financing.
• Prepaid items such as common charges, maintenance or real estate taxes, depending on the closing date.

Condo and townhouse buyers

• Mortgage recording tax if you finance — roughly 1.8% to 1.925% of the loan amount in New York City, depending on loan size.
• Title insurance and recording fees.
• For new development, buyers are often asked to pay the sponsor's transfer taxes and attorney fees — these are frequently negotiable.

Co-op buyers

• No mortgage recording tax and no title insurance.
• Board application and processing fees, lien search and move-in deposits.
• Some buildings charge a flip tax, which is usually paid by the seller but can be negotiated.

Tax rates and thresholds change, so confirm current numbers with your attorney and lender. Lexington Residential provides every buyer with an estimate of closing costs for a specific home before an offer goes in.

This article is general information, not legal, tax or financial advice. Questions about your situation? Contact Lexington Residential.