What Are The Closing Costs That Sellers Pay in NYC?

Photo by Yoav Aziz on Unsplash

By Colin O'Leary

In New York City, sellers typically incur various closing costs when selling a property. These costs can add up significantly and should be taken into account when determining your net proceeds from the sale. The specific closing costs can vary depending on factors like the property's location, the purchase price, and negotiations with the buyer, but here are some common closing costs that sellers may be responsible for:

1. Broker's Commission: In NYC, it's customary for the seller to pay a commission to the real estate agents involved in the sale. The commission is typically around 5% to 6% of the sale price, but this can vary.
2. New York City Transfer Tax: The NYC Transfer Tax is based on the sale price and is typically paid by the seller. The rate can vary based on the sale price and property type.
3. New York State Transfer Tax: This state-level transfer tax is also based on the sale price and is typically paid by the seller.
4. Attorney Fees: Sellers often hire an attorney to handle the legal aspects of the transaction, including reviewing contracts and ensuring a smooth closing. Attorney fees can vary depending on the complexity of the sale.
5. Title Insurance: Sellers typically pay for the buyer's title insurance policy, which protects the buyer against any issues with the property's title. The cost can vary based on the sale price.
6. Unpaid Property Taxes or Common Charges: Sellers must settle any outstanding property taxes or common charges on the property up to the closing date.
7. Miscellaneous Fees: There may be various smaller fees associated with the closing process, such as recording fees, document preparation fees, and more.

It's important to note that these costs can be negotiated between the buyer and seller, and in some cases, the buyer may agree to cover some of these expenses. Additionally, closing costs can vary depending on the specifics of the sale, so it's advisable to consult with a real estate attorney who is familiar with the NYC market to get a more accurate estimate of your closing costs based on your specific situation. If you're planning to sell your home in NYC and are in need of assistance, contact Colin O'Leary at 646-300-2012 to schedule a free consultation.