Understanding NYC Closing Costs

Buying property in New York City involves significant closing costs that can range from 1.5% to 7% of the purchase price. These costs include government taxes, lender fees, attorney fees, and various other charges specific to NYC real estate transactions. Understanding these costs upfront helps you budget accurately and avoid surprises at the closing table.

Mortgage Recording Tax

The mortgage recording tax is one of the largest closing costs for NYC home buyers who finance their purchase. This tax is calculated based on your loan amount:

• Loans under $500,000: 1.80% of the loan amount
• Loans $500,000 and above: 1.925% for residential properties
• Commercial properties and 4+ family buildings: 2.80% for loans $500,000+

Co-op apartments are exempt from mortgage recording tax because co-op purchases involve stock transfers rather than real property transfers.

Mansion Tax

The New York mansion tax applies to residential property purchases of $1 million or more. The tax rates are tiered based on the purchase price:

• $1M to $2M: 1.00%
• $2M to $3M: 1.25%
• $3M to $5M: 1.50%
• $5M to $10M: 2.25%
• $10M to $15M: 3.25%
• $15M to $20M: 3.50%
• $20M to $25M: 3.75%
• $25M and above: 3.90%

Attorney Fees

Real estate attorney fees are essential when buying property in NYC. Buyers typically pay for their own attorney as well as the lender's attorney if financing the purchase:

• Buyer's attorney fee: $2,500 to $5,000+ depending on complexity
• Bank's attorney fee: $1,000 to $2,000 (paid by buyer when financing)

Having an experienced real estate attorney is crucial in NYC transactions, especially for co-op purchases which involve reviewing offering plans, financials, and board packages.

Title Insurance and Related Fees

Title insurance protects buyers and lenders against claims on the property. These costs include:

• Owner's title insurance: Approximately 0.45% of purchase price
• Lender's title insurance: Approximately 0.20% of loan amount
• Title search and other charges: $600 to $1,200
• Municipal search: $400 to $500

Co-op purchases do not require title insurance since you are purchasing shares in a corporation rather than real property.

Lender Fees

When financing your NYC home purchase, expect the following lender-related costs:

• Loan origination fee: 0.5% to 1% of loan amount
• Appraisal fee: $300 to $1,000
• Credit report fee: $25 to $100
• Loan application fee: $300 to $500
• Bank processing fee: $300 to $500
• Flood certification: $25 to $50
• Tax service fee: $75 to $100

Property Type Specific Costs

Condo Closing Costs

Condo buyers pay title insurance, mortgage recording tax, and standard board fees including move-in deposits and application fees.

Co-op Closing Costs

Co-op purchases have lower closing costs because they are exempt from mortgage recording tax and title insurance. However, co-ops have additional fees like lien searches and UCC-1 filing fees.

New Development Costs

Buyers of new construction typically pay the seller's transfer tax (1.4% to 2.075%) and sponsor attorney fees ($1,500 to $3,000), significantly increasing total closing costs.

Townhouse and Multi-Family Costs

Single-family homes, 2-3 family houses, and 4+ family buildings require additional costs including survey fees ($1,000 to $1,200) and potentially higher title insurance rates.

How to Use This Calculator

1. Enter your target purchase price
2. Select your property type (condo, co-op, house, or multi-family)
3. Indicate if you are financing and enter your down payment
4. Customize optional fees like attorney costs and agent commission
5. Review the detailed breakdown of all closing costs

NYC Real Estate Market Overview

The New York City real estate market features unique closing cost structures. Typical buyer closing costs range from 1.5% to 7% of the purchase price, depending on property type and financing. Understanding these costs is essential for accurate budgeting when purchasing property in Manhattan, Brooklyn, Queens, the Bronx, or Staten Island.