When buying a home in New York City, you need to be aware of several closing costs. These costs can add up quickly, so it's important to budget accordingly. This blog post will discuss the five most common closing costs for homebuyers in NYC. While this isn't an exhaustive list, it covers most of what you can expect to pay at the closing table. You'll find the ten most common closing costs that NYC buyers need to pay. Coops are considerably cheaper to finance and purchase than similar-sized condo apartments. We'll outline condo closing costs in another post.

 

 

Government and Personal Fees

 

  • Mansion Taxes are the most costly fee you'll need to pay if you buy a more expensive home. These taxes are due on any property that closes at or above $1,000,000. If your buyer's agent can't negotiate a lower price on the home for you, then the mansion tax will come out of your pocket at closing time.

 

Beginning of the Closing Range Fee %
   
$1,000,000.00 1.00%
   
$2,000,000.00 1.25%
   
$3,000,000.00 1.50%
   
$5,000,000.00 2.50%
   
$10,000,000.00 3.25%
   
$15,000,000.00 3.50%
   
$20,000,000.00 3.75%
   
$25,000,000.00 3.90%

 

  • In New York, you must have an attorney involved in every transaction. You'll also need to pay attorney's fees at closing. These fees will vary depending on the lawyer you hire, but they typically range from $2500-$2000. This will be your most significant fee if you don't purchase an apartment for more than $1,000,000. Paying for a real estate attorney familiar with NYC real estate is essential to making the entire process run smoothly. New York City is just a different animal, and it's preferable to have an attorney that knows what they're doing. What's even better is to use an attorney that your agent suggests. You'd be surprised how much attorneys and agents butt heads throughout a transaction.

 

Building Fees

  • Another everyday fee is the co-op purchase application fee. This fee covers the cost of the co-op board reviewing your application and is typically a few hundred dollars.

 

  • Application fees are another standard closing cost. The lender charges these fees to cover the costs of processing the loan application. Depending on the lender, application fees can range from a few hundred to several thousand dollars.

 

  • The management company charges a move-in deposit and move-in fees. The stakes are refundable after your move. They'll range from $500-$1000 for each item. This is building dependent.

 

  • Credit Check Fees cost $100-$300 per applicant and are non-refundable.

 

Bank Fees

  • The bank also has an attorney fee that buyers will need to pay. Bank attorney fees range from 900-1500 per transaction.

 

  • Appraisal Fees are necessary to obtain a mortgage. Depending on the size of the property, appraisal fees will cost $300-$1500.

 

  • Recognition agreements are agreements between the coop, the bank, and the buyer. This agreement recognizes that the bank will have a first lien on the property if the new shareholder defaults on their mortgage payments. Costs for the recognition agreement are $200-300.

 

  • An expected surprise when buying a home is a maintenance adjustment fees are pretty standard. If you're wondering, your maintenance is pro-rated for each day you own the property. So if you close early in the month, be prepared to pay hundreds of dollars in fees.

 

Now that you're familiar with some of the most common closing costs for homebuyers in NYC, you can start budgeting accordingly. Be sure to work with a buyer's agent who knows the ins and outs of the NYC real estate market, as they'll be able to help you negotiate a lower price on the home and save you money in the long run. Thanks for reading!

 

Work With Michael

Michael has a deep understanding of real estate; but more than that, a genuine desire to help his client's reach their goals. He is passionate about gaining a deep understanding of the market and believes utilizing data to make better purchase and sales decision allows him to better serve his clients needs.
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