NYC closing costs: what buyers and sellers actually pay

By Kristina Misailova, Licensed Associate Real Estate Broker, Compass

Closing costs in New York City are higher and more layered than most people expect. Here is a plain-language map of who pays what, so there are no surprises at the table.

What buyers typically pay

• Attorney fee. Every NYC deal is handled by real estate attorneys on both sides.
• Mansion tax. New York State charges an additional tax on residential purchases at and above the $1 million mark, and it rises in tiers for higher-priced homes.
• Mortgage recording tax. Applies to condos and houses when you finance. Co-ops avoid this because shares are not real property.
• Title insurance. Required for condos and houses; not applicable to co-ops.
• Building and lender fees. Application, move-in, and various administrative charges.

What sellers typically pay

• Broker commission, the largest single line for most sellers.
• Transfer taxes. Both New York City and New York State charge a transfer tax on the sale, based on price.
• Flip tax. Many co-ops charge a flip tax on sale, set by the building. Read your building's rules early.
• Attorney fee and administrative building fees.

Co-op vs condo changes the math

Because a co-op is shares rather than real property, buyers skip the mortgage recording tax and title insurance, which lowers co-op closing costs meaningfully. Condos carry those costs but offer the flexibility covered in our co-op vs condo guide. The right comparison is always total cost, not sticker price.

Plan for them early

The reason closing costs cause stress is that people discover them late. A good broker walks you through an estimate specific to your deal at the start, so your net proceeds or your true cash-to-close is clear before you are committed.