When you close your real estate transaction, you will have to pay some money to signify the close. These costs include taxes, commissions, mortgage points, escrow, et cetera, and you will pay this money depending on the sale contract you have with the buyer.
In many cases, the buyer pays the closing cost; however, there are cases when you pay a substantial part of the money.
If you are selling your home, you must understand that you will also have to spend at least 10% of whatever amount your home costs. And this is why you need to weigh your options well and count the cost before you put up your house for sale. These costs can also depend on where you live and your mortgage. You may also pay them once or recurrently for a set period.
Now, if you are new to the real estate market, this might sound strange and confusing to you. However, there is no need to panic, as it is a straightforward process. With Leave The Key Homebuyers, one of the companies that buy houses in Brooklyn, you can ease in and out of the process with no trouble, especially if you stay in New York.
This guide will help you understand closing costs, how they work in New York, and the benefits and demerits of paying them. It will help you clear things up while encouraging you to plan for them. At the end of the article, you should understand closing costs and feel very confident about gliding through the process.
Key Takeaways: What Are Closing Costs in New York & Who Pays What?
- What Are Closing Costs in New York? Closing costs are fees paid by buyers and sellers to finalize a real estate transaction, separate from the home’s purchase price.
- Seller Closing Costs in New York: Sellers typically pay 8%–10% of the sale price, covering real estate commissions (6%), transfer taxes ($2 per $500, plus NYC extras), attorney fees ($1,500–$4,000), and prorated taxes/HOA fees.
- Buyer Closing Costs in New York: Buyers pay 1.5%–6%, including loan origination fees (1% of loan), appraisal fees ($500), title insurance ($1,500–$2,500), attorney fees ($1,500–$4,000), and optional mortgage points.
- How Much Are Closing Costs in New York and Long Island? For a $650,000 Long Island home, sellers might pay ~$37,850 (5.8%), while buyers could face $9,500–$13,500 (1.5%–2.1%), varying by financing and location.
- Key Insight: Sellers often bear higher costs due to commissions and taxes; NYC’s mansion tax can push seller costs above 10% for homes over $1 million.
- Alternative Option: Cash homebuyers may cover all seller closing costs, offering savings but often at a lower sale price.

What Are Closing Costs?
Closing costs are the fees and expenses you pay when finalizing the sale of your home. For sellers in New York, these costs typically range from 8% to 10% of the home’s sale price, though this figure often includes the standard 6% real estate agent commission. Other potential costs may include attorney fees, transfer taxes, mortgage payoff fees (if applicable), and escrow charges. Unlike in some states where costs are more evenly split, sellers in New York generally face higher closing costs than buyers, who typically cover their own set of fees like lender charges and title insurance.
The idea that you “cannot get the total net value of your home” simply means that these closing costs reduce the amount of money you ultimately pocket from the sale. For example, if you sell your home for $500,000, you might pay $40,000 to $50,000 in closing costs (8% to 10%), leaving you with less than the full sale price.
In New York, the state transfer tax alone is $4 per $1,000 of the sale price, and New York City properties may incur an extra 1% to 2.625% “mansion tax” if the price exceeds $1 million, depending on the specifics of the deal. These factors can further increase the seller’s expenses.
What Are The Closing Costs in New York?
The real estate commission, transfer taxes, and flip taxes form most of the closing costs you will pay as a seller. Others include the attorney fees, move-out deposit, agent fee, bank loan fee, common charge adjustment, NYS equalization fee, residential deed transfer fee, UCC-3 filing fee.
If the property is a co-op, then you will need to pay a flip tax, co-op attorney fee, and co-op stock transfer tax in addition to the above-stated fees. If the property price is $1 million, you will get about $800,000 since 10% of the net price has gone into paying the closing costs.
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New York Closing Cost Inclusions
As stated above, you will pay a higher percentage of the closing costs than the person purchasing your home. From the beginning of this article, we have mentioned these costs and their rates. But, what are they? Let’s find out.
Real Estate Commission
Real estate commission is the money that listing and broker agents use to advertise the sale of your home to intending buyers. This closing cost takes up the highest percentage of your entire expenses at the end of your home sale. It takes up a whopping 6% of the entire net value of your home.
However, since the advent of technology, no one can justify this high rate. And this is because advertising has become easier and cheaper than in the old days. As a New Yorker, you can save up on this 6% by refusing to hire a commission listing agent. Instead, you can list and advertise your home yourself.
How do you do this? First, submit the house details online on the listing site, select an NYC listing package, allow buyers to view the home and negotiate, and close your sale after accepting an offer. For example, you can put up a buy my house New York sign online if you stay in Texas and allow buyers to come to view it.
Transfer Taxes
There are two transfer taxes for which you must pay: the real property transfer tax and the New York State transfer tax. The real property transfer tax is a tax on the grants, transfers, and sales of a property in New York City.
This tax ranges from about 1% to 1.5% of the net value of the home. You will also have to pay a filing fee of $100 alongside this tax. On the other hand, the New York State transfer tax costs about 0.4% to 0.7% of the net value of your home.
Escrow Fees
While the seller is not responsible for all escrow fees, they do have to cover some of what is put in this particular kind of savings account. Escrow refers to when a third party, such as an escrow company, oversees the money and keeps it secure until a home sale has become completely finalized.
These measures help keep money safe until all the formalities are taken care of. Escrow agreements are generally made between the buyer and the seller before the home sale closes.
Flip Taxes
You pay flip taxes on co-op buildings, and they are about 1.5% of the net value of your home. However, you can only pay flip taxes if the lease document of the co-op specifies it. In some cases, the buyer will bear the flip tax burden, cutting you free from it.
Attorney’s Fees
Excellent and reliable real estate attorneys do not come cheap, and you will need an excellent one to ensure that your home sale process goes smoothly. An attorney will help you analyze the several legal modalities involved in the process and proffer practical advice to deal with any situation.
Before you pick an attorney, you should first vet their capabilities to check whether they can handle the job. Experience is one of the top qualities that you must look for. You should also check for credibility and reliability by reading the reviews of the attorney.
You can also ask for references to make the process more trustworthy. Negotiate well with your attorney concerning the fees. Doing this will help you save up more money on other costs you need to pay for.
Move Out Deposit
These fees vary from building to building and are, in many cases, compulsory. You should budget about $2000 to handle this deposit. This deposit should take care of the move-out fees that your condo or co-op levies against you.
There is also the common charge adjustment fee that you will pay to your buyer to reimburse them for the coming charge fees you should pay during the transfer. Others include managing agent fees, New York State Equalization fees, among other things.
Who Pays Closing Costs in New York?
In New York, sellers typically pay 8% to 10% of the sale price in closing costs, including real estate commissions and transfer taxes, while buyers cover 1.5% to 6%, mainly for mortgage fees and title insurance. The exact division is negotiable and outlined in the purchase contract, with additional taxes like the NYC mansion tax potentially applying to high-value homes.
In New York, your attorney needs to be present to draw up this contract of sale. Once they have finalized the draft to everyone’s satisfaction, you and the buyer can sign it. If you wish, You can accept a cash offer for your house sale. Your attorney will also help to smoothen the closing process and provide all information concerning the sale to you.
In drafting the contract, you should listen to the advice of your attorney on who should pay and how much of the costs you should bear, and without a good attorney, you might end up losing so much at the end of your home sale.
Sellers Closing Costs in New York
Cost Type | Description | Typical Range |
---|---|---|
Real Estate Agent Commission | Paid to the seller’s agent, often split with the buyer’s agent, typically 6%. | 6% of sale price (e.g., $30,000 for $500,000 home) |
Transfer Taxes | State tax is $2 per $500 of sale price; NYC has additional city transfer tax. | $2,000–$16,125+ depending on price and location |
Attorney Fees | Required in New York, covering legal representation at closing. | $1,500–$4,000 |
Prorated Property Taxes/HOA | Any unpaid taxes or fees up to the closing date. | Varies, often $500–$2,000 |
Buyer’s Closing Costs in New York
Cost Type | Description | Typical Range |
---|---|---|
Down Payment | Not part of closing costs but often considered in the transaction, typically 10–20%. | Not applicable (separate) |
Loan Origination Fees | Charged by the lender for processing the mortgage, often 1% of the loan amount. | 1% of loan (e.g., $4,000 for $400,000 loan) |
Appraisal Fees | Cost for a home inspection required by the lender. | $500 |
Title Insurance | Protects against title issues, includes owner’s and lender’s policies. | $1,500–$2,500 for $500,000 home |
Attorney Fees | Required in New York for legal representation at closing. | $1,500–$4,000 |
Points or Mortgage Fees | Optional fees to lower interest rates, 1 point = 1% of loan amount. | Varies, e.g., $4,000 per point |

Calculating Your Closing Costs
Now that you know all the various closing costs you will have to cover when selling a house in New York, the price is starting to stack up in your head. As stated before, average closing costs in New York can be quite high, from 8 to 10 percent of the final sales price of your home.
For example, the median home sale price in New York is about $750k, and 8% of that would total $61,200. 10% of that total would be $76,500. That’s a lot of money and time spent paying off costs and fees after you finally sell your house.
If you’re looking to save time, money, and a whole lot of hassle, you can sell your house quickly to a professional home buying company. Luckily for you, we buy houses in New York!
We can buy your home as-is, so you can skip spending all that money on repairs and worrying about the cost of home inspections. Forget about spending time and money trying to figure out all your various legal fees, hoa fees, and realtor commissions – we take care of all those details for you. We offer the best price for your home value through an easy approval process.
Pros and Cons of Paying Closing Costs in New York
There are benefits that you will enjoy if you pay these closing costs on your home. There are also some disadvantages to paying closing costs; it all depends on how you view it.
Pros of Paying Closing Costs
Some of the benefits include:
- You will sell your home faster. Buyers will be more likely to come over if they know that you will carry a significant burden of the closing costs. It is an efficient way to sell your house fast in Suffolk County.
- You will have a more significant buyer’s pool. And this implies that you will be able to negotiate a better price for your home.
Cons of Paying Closing Costs
The downsides include:
- You cannot have the total value for your home. In a case where you sell the house for $4 million, you will have to give up about 10% to closing costs.
- The process can be very technical, and if you do not have a good lawyer, you can lose money rather than gaining.
Save On Closing Costs in New York With A Cash Homebuyer
When considering closing costs in New York, cash homebuyers offer a compelling alternative for sellers aiming to reduce expenses. Unlike traditional buyers, cash homebuyers—often companies or investors like Leave the Key—frequently cover all closing costs, providing a quick and hassle-free sale.
For a $650,000 house on Long Island, a standard sale might saddle the seller with approximately $37,850 in costs, including transfer taxes ($2,600), attorney fees ($2,750), and real estate agent commissions ($32,500). Selling to a cash buyer can eliminate these fees entirely, depending on the deal negotiated.
However, this option comes with trade-offs. Cash offers are typically below market value, meaning sellers might sacrifice some profit for the convenience and savings. Still, the appeal lies in the speed and simplicity: no repairs, showings, or waiting for buyer financing. For New York sellers facing time constraints or seeking to avoid the complexities of a traditional sale, cash homebuyers can be a practical solution, balancing cost savings with efficiency.
Conclusion
Selling your home in New York will only be easy if you have expert hands to guide you. It would be best always to carry along a good and reliable attorney to help you, especially with the closing costs.
Closing costs are an essential part of your sale, but they can be a hassle if you do not understand them. Therefore, if you are selling your home, try to understand the costs you will have to pay and negotiate with your buyer on a price that will favor you.
You can also find the best cash home buyers to help put your sale through.
FAQ: Closing Costs in New York
Q: Who pays closing costs in New York?
A: Both buyers and sellers pay their own closing costs. Sellers typically cover 8%–10% of the sale price, while buyers pay 1.5%–6%, though this can be negotiated in the purchase contract.
Q: What are typical seller closing costs in New York?
A: Sellers usually pay real estate commissions (6%), transfer taxes ($2 per $500, plus NYC fees), attorney fees ($1,500–$4,000), and prorated taxes or HOA fees.
Q: What do buyers pay for in closing costs?
A: Buyers cover loan origination fees (1% of loan), appraisal fees ($500), title insurance ($1,500–$2,500), attorney fees ($1,500–$4,000), and optional mortgage points.
Q: Can I avoid closing costs in New York?
A: Selling to a cash homebuyer may eliminate seller closing costs, as some buyers cover them, but you might accept a lower sale price in exchange.
Q: Are closing costs higher in NYC?
A: Yes, NYC sellers face additional city transfer taxes and, for homes over $1 million, a mansion tax (1%–1.5%), potentially pushing costs above 10%.