Recently updated Feb 25, 2023 9:08 pm M.
By accepting the challengeSell house (with or without real estate agent), mostly because you have big plans with the money from the sale.
Of course, home sellers in Empire State will want to knowhow much does it cost to sell my houseIn New York.
So let's look at a practical example.
Mike and Amanda own a cozy home on Huntington Long Island that they need to sell to buy a larger home for their growing family.
AfterPreparing your home for sale, hire a real estate agent andList your home for sale in Long Island MLSfor $350,000. After a few weeks on the market, they find a buyer and sell their home for $342,500.
How much are Mike and Amanda expecting in closing costs?
See the table below as an example.
Closing costs for sellers in New York
|Description||Formula||Selling price fees of $342,500|
|real estate commissions*||6%||20.550 $|
|New York State Transfer Tax||0,004%||1.370 $|
|legal fees||US$ 1.000 - US$ 2.000||1.500 $|
|County registration fees||$ 50 - $ 100||75 $|
|Payout rate for the closest title||usually in the neighborhood of $200 per mortgage||200 $|
|Total closing costs for the seller in New York||23.695 $|
As you can see, selling a home costs a lot of money out of pocket.
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Now let's take a look at Mike and Amanda's situation if they owned a co-op instead of a single-family home and had to pay additional costs on top of the standard New York seller closing costs mentioned above.
Additional closing costs for Coop's in New York
|Description||Formula||Selling price fees of $342,500|
|Filp Fee/Tax||1% - 3%||$5.137|
|Cooperative Attorneys' Fees||about $450||450 $|
|Transfer Agent Fee||$ 250 - $ 750||500 $|
|exchange rates||$ 500 - $ 1000||750 $|
|Pay the bank commission/withdrawal fee||$ 250 - $ 500||375 $|
|UCC-3 Registration Fee||75 $ - 125 $||100 $|
|Total cost of coop closure in New York||$ 7312|
Finally, there is another type of home ownership that we need to talk about.
If Mike and Amanda owned a condo, they would have different costs than the New York seller's usual closing costs.
Additional closing costs for New York condos
|Description||Formula||Selling price fees of $342,500|
|Condominium Attorney Fees||about $500||500 $|
|exchange rates||$ 500 - $ 1000||750 $|
|Waiver of Registration Fees||$ 250 - $ 750||500 $|
|Various condominium fees||it varies||250 $|
|Total NY Condo Closing Cost||2.000 $|
Wow, that's a lot of fees, taxes and other costs!
If you are wondering what these costs are and what they mean. Below you will find explanations of the costs described above.
Description of the standard closing costs for sellers in New York
- real estate commissions– these are the obvious costs that everyone knows but hates to pay for. New York real estate agents are generally willing to charge a commission of around 6% of the selling price of your home. This cost is for them to list their home for sale on MLS and other marketing purposes, and for home sellers to successfully go through the process. If you need help selling a home hire an agent if you are experienced and can handle it as an FSBO check out ourNY Flat Rate MLS List Plans.
- New York State Transfer Tax"You didn't think you could sell your house and the government wouldn't try, did you?" This is what the great state of New York charges you when you sell your home. There is no way around it, you just have to pay.
- legal fees– Closing a house in NY requires the services of a lawyer and they want to get paid for their hard work. A good lawyer will ensure you are 100% protected when selling your home and will ensure that the paperwork is processed correctly.
- County registration fees– The New York city or county where your home is located charges a fee for updating land records after you sell your home. They also record the release of the mortgages and this is the cost of the city doing this work related to the sale of your home.
- Payout rate for the closest title– In order for it to close, someone has to go to the town hall to check the amount of the mortgage or deposit. This is the fee that the person charges for this work.
Description of closing costs for Coop New York sellers
- Reverse rate/tax–Flip Taxes are a fee set by the Coops Board of Directors to collect money from the seller when you leave the membership. The amount you pay can follow a few different models, be it a flat fee, a percentage of gross selling price, a fixed dollar amount per share owned by the co-op, or a percentage of net income. It is a quota that the cooperative uses to increase its reserves to invest in the cooperative's operations.
- Cooperative Attorneys' Fees– If you are selling your cooperative, you will need a lawyer to take care of some of the paperwork so that the transfer is legal. Like most companies, they pass these costs on to the customer, and in this case the provider.
- Transfer Agent Fee– This is a processing fee charged by the Coop Lead Agent to process the transfer at the end of the Coop. Yes, this is in addition to legal fees, everyone wants to be compensated for their time.
- exchange rates– Cooperatives charge vendors a fee for moving out of the building and related costs from the cooperative's funds. For example, the janitors and the elevators are used a lot to move and I think someone has to pay for it.
- Pay the bank commission/withdrawal fee– For the cooperative, there is a document drawn up by the bank's lawyer, which basically makes it possible to protect the bank even in the event of a default. This fee covers the time and expense associated with this process.
- UCC-3 Registration Fee– Since cooperatives are an organization, they must file a UCC or Uniform Commercial Code. This fee covers the recording of this notice.
Description of closing costs for condo sellers in New York
- Condominium Attorney Fees– If you are selling your condo, the association will have a lawyer who will need to prepare the condo paperwork. This fee covers the time and expense required for the condominium attorney to do this work.
- exchange rates– Condominiums may charge sellers a fee to cover the costs associated with moving out of the building. That covers those expenses and probably more.
- Waiver of Registration Fees– Condominiums have a right of first refusal on the unit upon sale. This fee covers their time and expense to make this decision and process a waiver if they decide not to purchase the unit.
- Various condominium fees– This bucket covers any other fees the homeowners association may charge sellers in the event of a sale. These fees must be clearly documented in the condominium documents or articles of association of the association.
It's certainly a good amount of information on all the expenses a homeowner can expect when selling their home in New York.
Don't make the mistake of thinking that closing costs are the only costs associated with selling your home in New York.
Going back to our example, does this mean that upon completion, Mike and Amanda only have to pay the fees outlined above? Not necessarily.
There are other costs associated with selling a home in NY.
Below are the high-end items that will eat up the proceeds of your home sale.
- Cost of preparing your home for sale– this can include everything from hiring a professional organizer, pre-sale home inspection, maintenance and repair items, to getting your home ready for the market.
- costs of imprisonment– Once you have signed a lease for your home with a buyer, there are some costs that you must pay. Always check the contract to know exactly what you are looking for. Common expenses that sellers in New York often overlook are repairs to your home after the buyer completes a home inspection. These repairs are made to salvage a sale that might otherwise fall apart.
- Final costs- (described above)
That pretty much covers the cost of selling a house in New York. I hope you found it useful and that it helps you at every stage of the process of selling your home.
If you still have questions about your home selling expenses or my flat rate MLS offering plans, please leave us a comment below.
About the author:Kris Lippi is the owner of ISoldMyHouse.com, a broker for Get LISTED Realty, and is an Official Member of the Forbes Real Estate Council. He actively writes on real estate-related topics such as buying and selling homes, how-to guides for home use, and recommendations for household products. He has been featured in Inman, Readers Digest, Fox News, American Express, Fit Small Business, Policy Genius, Lending Tree, GoDaddy, Manta and other major websites. Read more about usHere.
What are the closing costs in New York? ›
In most cases, closing costs in New York City range from 1.5 to 6 percent for buyers and 8 to 10 percent for sellers. As you conduct market research to list your home or buy one, you can use this range to estimate what you will have to pay at closing. Closing costs are often easier for sellers to pay than buyers.Do sellers pay closing costs in NY? ›
While you and the buyer can be liable to pay the closing costs, it is almost always the buyer who pays it. In New York, closing costs for sellers range from 8% to 10%, although this is if you have paid the 6% agent commission. Your closing costs are also typically higher than that of buyers.What is typically the sellers largest closing cost? ›
Realtor commission is the single largest closing cost for sellers, averaging 5-6% of the final sale price. In a typical home sale, the seller pays both the listing agent and the buyer's agent commission.How are closing costs calculated in NYC? ›
Seller closing costs in NYC are between 8% to 10% of the sale price. Closing costs include a traditional 6% broker fee, combined NYC & NYS Transfer Taxes of 1.4% to 2.075%, legal fees, a building flip tax if applicable as well as building and miscellaneous fees.How much are real estate attorney fees for closing in NY? ›
How much will you pay in real estate attorney fees for closing? Generally speaking, real estate agents will estimate that attorney fees in NYC will range anywhere from $1,500-$4,000 per transaction.How much does a real estate attorney charge a seller? ›
Depending on who you hire, you can expect to pay anywhere from $150 to $500 an hour for a good attorney. You can also hire attorneys for flat fees for specific services. This can run anywhere from $800 to $1,500 when selling a home.How much tax do you pay when you sell your house in NY? ›
The tax rate is an incremental rate between . 25% and 2.9% based on the purchase price. The rates are published in Form TP-584-NYC-I, Instructions for Form TP-584-NYC.Who pays the transfer tax in NY? ›
Who Pays the Real Estate Transfer Tax? In New York, the seller of the property is typically the individual responsible for paying the real estate transfer tax. However, if the seller doesn't pay or is exempt from the tax, the buyer must pay.Who pays for title insurance in New York? ›
There are two types of title insurance policies: lender's (mortgage loan) policies, and owner's (fee or purchase) policies. The home buyer is generally responsible for paying for both policies.What is the formula for calculating closing costs? ›
To calculate closing costs, you can estimate 2% to 5% of the total amount you plan to finance. For example, with a loan of $200,000, you could estimate closing costs between $4,000 and $10,000. To get a more accurate estimate, request a Loan Estimate document from your potential lender.
How do you calculate cash at closing? ›
The general formula for calculating your cash to close is fairly simple. Your down payment plus your closing costs make up the majority of what you need to close on a mortgage, minus any credits from the seller or earnest money you've already deposited.Are closing costs tax deductible? ›
In general, most closing costs are not tax deductible. This is because the IRS regards them as part of the expense of purchasing a home and not a cost related to the use of the home.How many days before closing is the final walk through? ›
In most cases, the final walk-through is scheduled within 24 hours prior to the closing date. Your real estate agent can help you set a time with the seller's agent when you can be sure the property will be accessible and (hopefully) vacant.What is the maximum percentage of the purchase price that sellers can contribute to closing costs with a VA loan? ›
Note: We require that a seller can't pay more than 4% of the total home loan in seller's concessions. But this rule only covers some closing costs, including the VA funding fee. The rule doesn't cover loan discount points.What is considered a large purchase during closing? ›
A big purchase – one that increases your debt-to-income (DTI) ratio or drains your cash reserves – can be enough to cause your lender to pull the plug on your mortgage application.Does the seller pay realtor fees in New York? ›
In New York, like practically every other U.S. real estate market, the homeowner/seller pays the realtor fees out of the proceeds from the sale of the property. This means that they are paying for their agent as well as the agent of the Buyer.Who pays closing costs? ›
Closing costs are paid according to the terms of the purchase contract made between the buyer and seller. Usually the buyer pays for most of the closing costs, but there are instances when the seller may have to pay some fees at closing too.Do you need a lawyer for a real estate closing in New York? ›
If you are buying or selling a home in the state of New York, it is required that you work with an attorney to process all contracts and represent you at the closing. In addition, your attorney will assist you by: Preparing the first draft of the sales contract. Finalizing the contract between the buyer and seller.What is included in closing costs for buyer New York? ›
What are Buyer Closing Costs in New York City. Buyer closing costs are real estate transaction fees that are paid in addition to your down payment and mortgage amount - including taxes, title insurance, attorney fees, etc.What is included in closing costs for buyer? ›
Thus, closing costs include all expenses and fees charged by lenders and third parties, such as the broker and government, when the buyer gains ownership of a property. Closing costs may be one-time payments like brokerage or payments that recur on account of ownership such as home insurance.
What are closing costs on a NYC coop? ›
As a rule of thumb, closing costs in coops are one to two percent of the purchase price, but in condos, closing costs are two to four percent of the purchase price.How much are closing costs in NY FHA loan? ›
The closing costs in your FHA loan will be similar to those of a conventional mortgage loan. These costs typically will be around 2% to 6% of the cost of your property. Your costs will be tied to things like your loan amount state the property is located in and lender fees.