Keller Williams NYCJonathan Answers · Buyer closing costs
What are the closing costs for buying an apartment in New York City?
Answered by Jonathan NormolleFounder, NextGen at Keller Williams NYC
The short answer
Plan on roughly 1–4% of the price for a co-op and 2–6% for a condo, more at higher prices. The big items are the mansion tax on homes of $1 million and up, the mortgage recording tax on condo loans, title insurance and your attorney. With NextGen, your attorney is covered and so is 20–50% of your move.
Costs for every buyer
- Mansion tax: 1% on homes of $1 million and up, rising in steps on higher prices in New York City.
- Your attorney: covered for NextGen clients.
- Bank fees and appraisal if you're financing.
- Building fees: application, move-in deposits and managing agent fees.
Condo buyers also pay
- Mortgage recording tax on the loan amount (roughly 1.8–1.925% in NYC).
- Title insurance and recording fees.
- Sponsor-paid transfer taxes on many new developments, which are often passed to the buyer.
Co-op buyers also pay
- No mortgage recording tax and no title insurance, which is why co-ops cost less to close.
- Lien search and co-op attorney fees.
- Board application fees.
What we do
We give every buyer a line-by-line estimate before they bid, so there are no surprises at closing. Your legal fees are covered, and so is 20–50% of your move.
Also asked
Who pays the mansion tax in NYC?
The buyer, on homes priced at $1 million and up.
Are closing costs lower for a co-op or a condo?
Usually a co-op, because there is no mortgage recording tax or title insurance.
What is the mortgage recording tax in NYC?
A tax on the mortgage amount for condos and houses, roughly 1.8–1.925% in New York City. Co-op loans are not subject to it.
The NextGen Promise
Your legal fees, covered. 20–50% of your move, on us.
Buying or selling, at every price. We're the only brokerage that does it.