Share On

One question that’s on the mind of almost anyone putting their house on the market in New York is – How much are closing costs for sellers in NY? The simple answer is around 6% (or between 4% and 8%) of the selling price. But it’s important to understand all the elements making up these costs.

Seller Closing Cost Breakdown 

The most significant cost sellers in New York pay is the commission for the New York City brokers. The sellers used to be on the hook for both buyer’s and seller’s agent’s commissions, though this practice is changing as the commissions are now decoupled due to a lawsuit. Under the new REBNY commission rules that most brokers in the city will need to adhere toi, the sellers will only pay a commission to the seller’s/listing agent. They may choose to pay the buyer’s agent’s commission, but it’s no longer the default arrangement. The seller’s/listing agent’s commission is still a major cost – around 2.5% to 3% of the sale’s price.

Next is the transfer tax, typically paid by the seller. The tax is:

  • 1.825% for all properties selling between $500,000 and $3,000,000 (representing the bulk of transactions in the city)
  • 2.075% for properties selling over $3 million.
  • 1.4% for properties selling below $500,000

It includes both city and state taxes. So, for most sellers, it would be around 1.825% of the sales price.

House-shaped wooden block with ‘Closing Costs’ written on it, placed next to a calculator and money, symbolizing seller closing costs in NY

Then there is the attorney fee. They mostly hover between $2,500 and $5,000. There are a few other costs but they may not be as significant. However, if you are selling a co-op, you may also need to pay a flip tax, which is 1 to 2% of the sales price on average. 

Total Seller Closing Costs

Assuming 3% for commission, 1.825% in transfer taxes, 1% flip taxes, and 1% other costs, the total comes to around 6.825% for co-op sellers and 5.825% for most other sellers. However, with the buyer’s agent’s commissions and maximum flip tax, it can easily reach 8% to 10%.


Follow Us

The Latest

BROWSE ARTICLES

You May Also Like

A ‘For Sale’ sign in front of a suburban house with blooming trees, symbolizing tips for a quick property sale

5 Tips For Selling Your Property Quickly

What is the secret to a fast sale of a property? This is a question several different types of homeowners have. Some need to sell fast because they need the funds from the proceeds. Others might be looking to take advantage of a favorable market. But the main goal is not to sell fast. It’s selling fast at the best possible price.

A small wooden house model labeled 'PROPERTY TAX' placed on a stack of hundred-dollar bills, symbolizing real estate property taxes.

Who is Responsible For The NYC Real Property Transfer Tax?

Who pays the NYC real property transfer tax? The seller pays the NYC real property transfer tax or RPTT. It applies to all real estate transactions, including co-ops that are technically not considered real property but rather personal property, since what you actually buy are shares of a co-operative and the right to live in one of the units.

A wooden house model on top of dollar bills with ‘Property Tax’ written on it, representing real estate taxes in NYC.

Property Taxes at Closing – Who is Responsible in New York? 

Who pays property taxes when closing in New York? The seller – who owned the property during the time the taxes were incurred, is typically responsible for paying property taxes at the time of closing. However, the responsibility can be shifted to the buyer with mutual agreement. If the buyer receives a tax bill for the period the seller occupied the property, they may be responsible as current owners of that property. They can reach out to the seller to pay the bill or even have this as part of the contract at the time of closing (so the seller can leave money in the escrow).
Then there are taxes specific to the transaction itself, i.e., property changing hands. Both buyers and sellers have their own taxes.

A set of keys being handed over in front of a modern house, symbolizing the process of selling an apartment in NYC.

How To Sell an NYC Apartment 

One question many first-time sellers have is – how to sell an apt in NYC? The process may differ slightly for every one and based on what kind of apartment they are selling (because co-ops might be more challenging to sell than condos). But the basic steps are the same. The first thing you need to do is find a broker/a real estate agent. A seasoned New York City broker can make the process of selling an apartment incredibly easy and ensure that you get a good price for your property.

A calculator and tax documents with ‘Capital Gains Tax’ highlighted, representing strategies to reduce real estate tax liability in NY

How To Get Around Real Estate Capital Gains Tax in NY

ow do I avoid capital gains tax on real estate in NY? This is the question many sellers have, and not just in New York. Both the federal and state governments can take a significant chunk of your profits in the form of capital gains.

A luxurious high-rise building in NYC, representing record-breaking apartment sales.

Highest Selling Apartment in NYC

What is the highest-selling apartment in NYC? The highest-selling apartment ever in NYC is the penthouse at 220 Central Park South. It was bought by Ken Griffin, a hedge fund manager, in 2019 for $238 million. This isn’t just the highest-selling apartment in NYC but also the most expensive residential real estate deal in the history of the country. The sale was closed in 2019, but the buyer signed the contract in 2015 when the building was still under construction. Here is what we know about this apartment

Choosing A Realtor in NYC – What Should You Know?

How to pick a realtor in NYC? This is a step most NYC buyers and sellers should spend significant time on because this one choice can have a massive impact on how their transaction goes. A few tips that can help are