What Are the Average Closing Costs When Purchasing a Property in NYC?

When clients engage our team as their NYC real estate consultants, one of the first conversations we have is about closing costs. For some buyers, it’s just another line item. But for first-time buyers? Understanding why a $2M condo costs $37,875 MORE at closing than a $2M co-op can be the difference between buying this year or waiting another twelve months.

So let’s break down exactly what you’re paying.

When you’re buying a condo in NYC, here are the major costs we walk every client through:

1. 💲𝐌𝐚𝐧𝐬𝐢𝐨𝐧 𝐓𝐚𝐱 (𝐲𝐞𝐬, 𝐞𝐯𝐞𝐧 𝐨𝐧 𝐚 𝐨𝐧𝐞-𝐛𝐞𝐝𝐫𝐨𝐨𝐦)

This kicks in at $1M and scales up:

$1M to $2M: 1%
$2M to $3M: 1.25%
$3M to $5M: 1.5%
$5M to $10M: 2.25%

2. 💰𝐌𝐨𝐫𝐭𝐠𝐚𝐠𝐞 𝐑𝐞𝐜𝐨𝐫𝐝𝐢𝐧𝐠 𝐓𝐚𝐱 (𝐭𝐡𝐢𝐬 𝐨𝐧𝐞 𝐬𝐮𝐫𝐩𝐫𝐢𝐬𝐞𝐬 𝐩𝐞𝐨𝐩𝐥𝐞)

If you’re financing:

Under $500K: 1.8%
$500K or more: 1.925%

3. 💎𝐓𝐢𝐭𝐥𝐞 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞

Typically, 0.4% to 0.5% of purchase price

4. 🧑‍🏫𝐀𝐭𝐭𝐨𝐫𝐧𝐞𝐲 𝐅𝐞𝐞𝐬

Usually, $3,000 to $4,500

5. 💲𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐓𝐚𝐱 (𝐧𝐞𝐰 𝐝𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝐨𝐧𝐥𝐲 - 𝐬𝐞𝐥𝐥𝐞𝐫𝐬 𝐩𝐚𝐲 𝐭𝐡𝐢𝐬 𝐨𝐧 𝐫𝐞𝐬𝐚𝐥𝐞𝐬)

NYS: 0.4% (0.65% for $3M+)
NYC: 1.425%
Combined: ~1.825% to 2.075%

𝐍𝐨𝐰 𝐡𝐞𝐫𝐞’𝐬 𝐰𝐡𝐞𝐫𝐞 𝐜𝐨-𝐨𝐩𝐬 𝐬𝐚𝐯𝐞 𝐲𝐨𝐮 𝐦𝐨𝐧𝐞𝐲:

Because co-op ownership means you buy shares in a corporation (not real property), you skip two major expenses:

❌ Mortgage Recording Tax (saves 1.8-1.925%)
❌ Title Insurance (saves 0.4-0.5%)

𝐖𝐡𝐚𝐭 𝐲𝐨𝐮 𝐃𝐎 𝐩𝐚𝐲:

✅Mansion Tax (same brackets as condos)
✅Attorney Fees ($3,000-$4,500)
✅Potentially Flip Tax (varies by building, usually paid by seller)

𝐀𝐛𝐨𝐮𝐭 𝐅𝐥𝐢𝐩 𝐓𝐚𝐱:

Some co-ops charge this - typically 2% of sale price or a dollar amount per share. Check the building’s offering plan, but in most cases, the seller pays it, not you.

In addition to the above costs, there are additional fees that may be associated with the building, lender, attorney, or bank. This is for both condos AND co-ops.

Many of the same rules that govern a condo purchase also apply towards the purchase of a single or multi-family building (brownstone, townhouse, etc.) since you are obtaining the title/ deed to the property. Purchasers more frequently hire additional inspectors in these cases, which would also increase the expense by a small margin.

Buying a home is an incredible move, and we have lots more to share about it!

Message us, we’re happy to discuss strategy and guide you through your next step in purchasing in NYC.