Empire State has its share of oddities, including a long list of costs to close the deal.
Closing costs are a confusing part of homebuying, with fees that vary by your state, your city and even the property you plan to buy.
New York State comes in second for most expensive closing costs — not surprising, given it also boasts some of the most expensive real estate nationwide. In the Empire State, homebuyers must cough up between 3.81% and 5.08% of their property’s purchase price to cover closing.
Average closing costs in New York
Across the state, the average home sale price is between $300,000 and $400,000. If you buy a home in that price range, the average closing costs before taxes are $4,915. These fees pay for processing, appraisal and recording fees, plus title insurance, municipal searches and more.
New York is also notorious for its taxes, and real estate is no exception. If you live in the city, you face property taxes and the New York City mortgage tax — which can be anywhere from 1.80% to 2.80% of your purchase price — resulting in about $15,254 in closing costs after taxes.
If you’re buying a home for $1 million or more in the Big Apple, your purchase is subject to the New York City mansion tax. It’s a mere 1% of your purchase price, but it ends up being no small tax. And you’ll end up paying it within 15 days of your closing.
Sellers don’t get away scot-free, either. If you’re the home seller, you pay fees as well as a New York State or New York City transfer tax.
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Who pays closing costs in New York?
In New York, closing costs are split between the buyer and the seller. These are the fees and taxes you can expect to pay when purchasing or selling a home. They apply across New York State and New York City, unless otherwise indicated.
Buyers
For condos, townhouses and single-family homes
- Attorney: Varies
- Bank attorney: $650–$750
- Bank fees: $350–$750
- Application fee: $350
- Processing fee: $330
- Appraisal fee: $300–$1,500, depending on sale price
- Recording fees: $250–$750
- Fee title insurance: Varies
- Mortgage title insurance: Varies
- Municipal search: $350–$500
- Credit report fee: $10.10 for a single report or $15.20 for a joint report
- New York City mansion tax: 1% of purchase when sale price is $1 million or more
- New York City mortgage tax — paid by borrower
- Mortgage of up to $500,000: 1.80%
- Mortgage of $500,000 or more on one- to three-family residential building: 1.925%
- Mortgage on other properties of $500,000 or more: 2.80%
- Miscellaneous condominium fees: Varies
Potential fees for co-ops
- Lien search: $250–$350
- UCC-1 filing fee: $100
- Recognition agreement fee: $200 or more
- Miscellaneous co-op charges: Varies
Sellers
For condos, townhouses and single-family homes
- Broker: Usually 6%
- Attorney: Varies
- Processing fee: $450 or more
- New York City transfer tax
- Residential
- Properties of up to $500,000: 1%
- Properties of $500,000 or more: 1.425%
- Commercial
- Properties of up to $500,000: 1.425%
- Properties of $500,000 or more: 2.625%
- Residential
- Administrative fee
- Residential deed transfers: $75
- Commercial deed transfers: $165
- New York State transfer tax: $4 per $1,000
- New York State equalization fee: $75
- Pickup or payoff fee: $250–$500
- UCC-3 filing fee: $100
- Miscellaneous condominium fees: Varies
Potential fees for co-ops
- Co-op attorney: Varies
- Administrative fee for nondeed transfers: $50
- Flip tax: 1% to 3% of purchase price, if applicable
- Stock transfer tax: $0.05 per share
- Move-out fee: Varies
- Miscellaneous co-op fees: Varies
How do closing costs in New York compare nationally?
New York has the second-highest closing costs in the country, trailing only Washington, DC. In terms of its closing cost-to-sale price before taxes, it’s fourth-highest out of the 50 states.
What to know about buying a house, condo or co-op in New York City
While closing costs for condos and homes are straightforward, co-ops are a different animal — and they make up 75% of housing in New York City.
Unlike condos and houses, co-ops are owned by a corporation. If you buy an apartment inside a co-op building, you’re not actually purchasing property: You’re buying shares of the corporation. In other words, you’re an investor — not an owner.
All of these factors affect closing costs for the buyer and the seller. As a seller, you’ll pay a flip tax, a stock transfer tax, a move-out fee and miscellaneous co-op fees, along with a slew of standard city and state fees, .
If you’re buying a condo, you’ll typically need to prove that you have the funds to cover up to two years’ worth of fees and mortgage payments after closing costs.
Bottom line
If you’re buying or selling property in New York, prepare to pay a lot at closing. The state has the second-highest closing costs in the country, with tax costs averaging more than $10,000.
While most closing costs are out of your control, you can save money by shopping around for an affordable mortgage that meets your budget.