8/24/2023 0 Comments Mortgage calculator nycAdditionally, you can ensure your listing agreement includes a reduced commission for transactions with direct buyers that don't aren't represented by a real estate agent. The more realistic way to save money is to try and hire an agent who will accept a lower 1-1.5% commission to sell your home. Finally, you should keep in mind that if you do sell by owner, you can expect to pay anywhere from a few hundred to a few thousand dollars to market the property (this includes things like professional photos and listing on streeteasy and the New York Times). There's also the fact that selling a home by owner can be difficult, especially when it comes to getting sufficient marketing and exposure. This is mostly because interested buyers will likely be working with a buyer agent who will expect to be compensated, so you should expect to pay at least 2.5% to a cooperative buyer agent. While this fee is negotiable and lowering it is certainly possible, it's unlikely that you'll be available to avoid it altogether. $1.5 million apartment NYC seller closing costs calculatorĪs you can see, the biggest variable when it comes to fees associated with selling property in NYC is the real estate commission. Generally, the costs for selling a condo and co-op are similar, although co-ops are more likely to have a flip-tax. hash-mark Calculating Seller Closing Costs in NYC ExampleĪs an example, we'll calculate the expected fees for the seller of a $1.5 million apartment. While this technically isn’t a cost associated with selling your property, most NYC co-ops and condos charge moving fees, which you can expect to pay whenever you move in or out of your apartment. (Coops Only) ($0.05/share) – the fee from transferring the stock to the new owner. While the seller usually pays the fee, sometimes the buyer will pay it. This transfer fee is generally calculated at 2% of the gross sale price but can range from 1 to 3 percent. Although you typically only see this fee when selling a co-op, some condos in New York City have this fee as well. Flip TaxĪ flip tax is a fee paid to a co-op corporation for selling your co-op apartment. (if Applicable) This is the fee that lenders charge for processing the payoff letter request. New York State imposes a real estate transfer tax on conveyances of real property or interests therein when the consideration exceeds $500. New York State Transfer Tax (0.4% of gross purchase price) Some NYC HDFC coop sales may be exempt from NYC transfer taxes. The fee is 1% of the total purchase price if $500 K or less 1.425% of the total purchase price if over $500K. You must also pay RPTT for the sale or transfer of at least 50% of ownership in a corporation, partnership, trust, or other entity that owns/leases property and transfers of cooperative housing stock shares. You must pay the NYC transfer tax on sales, grants, assignments, transfers, or surrenders of real property in New York City. NYC Real Property Transfer Tax (RPTT) & Filing Fee (1-1.425%) You can expect to pay your attorney somewhere between $1,500 to $3,500. However, keep in mind that you are not locked into this fee because, by law, it’s negotiable. In New York City, this fee is typically 6% and is paid by the seller. This makes the real estate commission the highest closing cost for sellers. hash-mark NYC Seller Closing CostsĬlosing costs for sellers are substantially higher than for buyers, thanks to the fact that sellers have to cover the real estate broker’s commission, which is typically 6%. This unique form of ownership incurs different closing costs from a condominium or single-family home. You'll receive a document that's called a co-op proprietary lease that controls your occupancy in the apartment. When you buy an apartment located within a co-op building, you are not buying real property, but instead, you are buying shares of a corporation. Co-ops are different from condominiums (“Condos”) and single-family homes. NYC co-op ownership is a unique ownership structure : Approximately 75% of apartments available for sale in New York City are in cooperative buildings (“Co-ops”). While closing costs are part of every real estate transaction, the amount and type of expenses incurred varies depending on whether you are the buyer or seller, and the type of property involved in the transactions. hash-mark How Much in Closing Costs Should a Buyer or Seller Expect to Pay in NYC?Ĭlosing costs usually run between 2%- 5% of the purchase price for the buyer and anywhere from 8% - 10% of the transaction for the seller. Whether you're buying or selling a condo, co-op, or townhouse, we'll cover it all from taxes, bank fees, and legal fees to who pays for what to how to calculate your estimated closing costs. Learn about buyer and seller closing costs in NYC with our guide and calculator.
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