Closing Costs in New York City Unpacked
Buying or selling property in New York City comes with many moving parts—but one of the most critical, often overlooked, elements is closing costs. Whether you’re purchasing a co-op on the Upper East Side, a new development condo in Hudson Yards, or a townhouse in Brooklyn, understanding what goes into closing costs—and how they differ for buyers and sellers—is essential.
This guide breaks down the general closing costs by property type, provides commentary on what each fee represents, and explains why consulting your real estate attorney and lender is vital to get precise numbers.
What Are Closing Costs and Why Do They Matter
Closing costs are additional expenses beyond the purchase price, covering services such as title insurance, appraisals, inspections, attorney fees, and lender-related costs. These fees protect both buyers and sellers, ensuring a smooth and legal transfer of ownership.
In NYC, these costs also include state and city transfer taxes, mansion taxes, mortgage taxes, and HOA/co-op fees. Each property type—co-op, condo, townhouse, or new development—carries unique obligations. Buyers who overlook these costs risk overextending their budgets or encountering unexpected hurdles at closing.
Closing costs go beyond the purchase price and can include:
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Transfer taxes (NYC and NYS)
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Mansion tax (if applicable)
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Mortgage recording tax
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Attorney and bank fees
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Title and insurance fees
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Building-specific fees (for co-ops or condos)
Nationally, closing costs typically range from 2% to 5% of a property’s price. In NYC, however, the costs can vary widely depending on property type, purchase price, and whether it’s a resale or new development.
NYC vs. National: Why Local Knowledge Matters
National averages suggest closing costs range from 2% to 5% of a home’s purchase price, but NYC is rarely average. Local laws, municipal taxes, and professional fees create higher and more complex closing obligations than in most states.
For sellers, especially in luxury markets, knowing these costs allows strategic pricing. For buyers, early awareness helps negotiate credits and avoid surprises.
Why You Need Professional Modeling
While this guide provides general estimates, the exact closing costs for any transaction depend on:
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The type of property: co-op, condo, townhouse, or new development
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The purchase price
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Building rules or sponsor obligations
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Financing structure
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Whether you are a buyer or seller
Your attorney and lender will run the numbers to model the costs precisely for your situation. This ensures no surprises at closing and allows you to budget confidently.
NYC Closing Costs by Property Type
The table below provides general estimates for both buyers and sellers. All figures are illustrative and should be confirmed with your attorney/lender.
| Property Type | Buyer Costs (Approx.) | Seller Costs (Approx.) | Commentary |
|---|---|---|---|
| Condominium (Resale) | – NYC Transfer Tax: 1%–1.425% – NYS Transfer Tax: 0.4%–0.65% – Mansion Tax (≥ $1M): 1%–3.9% – NYC Mortgage Tax: 1.8%–2.8% – Purchaser Attorney: $2,500–$3,500 – Bank Attorney: $850–$1,500 – Title & Mortgage Insurance – HO6 Insurance |
– Broker Commission: ~6% – Seller Attorney: $2,500–$3,500 – Condo Move-Out/Application Fees: $400–$1,000 – Payoff/Title Fees: $250–$500 |
Buyers pay standard taxes and insurance; sellers cover broker commission and legal fees. Condo move-out fees vary by building. |
| New Development Condo | – NYC Transfer Tax: 1%–1.425% – NYS Transfer Tax: 0.4%–0.65% – Mansion Tax: 1%–3.9% – NYC Mortgage Tax: 1.8%–2.8% – Purchaser Attorney: $2,500–$3,500 – Bank Attorney: $850–$1,500 – Sponsor Attorney Fees: $2,500–$3,500 – Working Capital Fund: 1–2 months common charges – Super Unit Contribution: % of common interest – Title & Mortgage Insurance |
– Broker Commission: ~6% – Developer/Builder Fees (if any) – Seller Attorney: $2,500–$3,500 – Payoff/Title Fees: ~$250–$500 |
Buyers assume many fees typically paid by sellers in resale. Sponsor fees and working capital increase total costs. |
| Co-op | – Purchaser Attorney: $2,500–$3,500 – Bank Attorney: $850–$1,500 – Lien Search & UCC Filing:$350-$100 – Move-In Deposits: $500–$1,000 refundable, $250–$750 non-refundable – Recognition Agreement Review: $150–$300 |
– Broker Commission: ~6% – Seller Attorney: $2,500–$3,500 – Flip Tax (if applicable): 1%–3% – Co-op Move-Out Fees: $500–$1,000 refundable, $250–$1,000 non-refundable – Transfer Agent Fees: $450–$850 |
Co-ops have unique fees like flip taxes and move deposits. Costs are highly board-dependent. |
| Townhouse / Single-Family Home | – NYC Transfer Tax: 1%–1.425% – NYS Transfer Tax: 0.4%–0.65% – Mansion Tax (≥ $1M): 1%–3.9% – NYC Mortgage Tax: 1.8%–2.8% – Purchaser Attorney: $2,500-$3,500 – Bank Attorney: $850–$1,500 – Title & Mortgage Insurance – Home Inspection & Survey |
– Broker Commission: ~6% – Seller Attorney: $2,500–$3,500 – Payoff/Title Fees: $250–$500 |
Buyers pay standard taxes and insurance; inspection and survey costs are more common. Sellers cover broker commission and legal fees. |
⚠️ Note: These are estimates. Exact costs depend on purchase price, financing, building rules, and transaction specifics. Always consult your real estate attorney and lender.
Key Takeaways for Buyers & Sellers
Navigating closing costs in New York City requires a clear understanding of the variables that differ by property type, transaction role, and location. While your attorney and lender must model exact figures, the following points provide a high-level framework for what buyers and sellers can anticipate. Keeping these considerations in mind will help you plan strategically and avoid surprises during your transaction.
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Know your property type: Co-ops, condos, townhouses, and new developments have different closing costs.
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Budget for taxes: NYC and NYS transfer taxes, mansion taxes, and mortgage recording taxes can be substantial.
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Factor in legal and insurance fees: Attorneys, bank fees, and title/HO6 insurance are standard.
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New developments often shift costs to buyers: Unlike resale condos, many fees traditionally paid by sellers (transfer taxes, attorney fees) are passed to buyers.
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Co-op boards add complexity: Move deposits, flip taxes, and recognition fees are unique to co-ops.
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Always consult professionals: Attorneys and lenders provide exact modeling for your transaction.
Why This Matters in NYC
Closing costs can be tens or even hundreds of thousands of dollars, especially for high-end properties. Understanding them upfront protects both buyers and sellers from unexpected expenses and ensures a smooth transaction.
Additional Resources
