Buyer’s Agent Fee: $18,265–$21,918
In the past, most home sellers covered both the listing agent and the buyer’s agent commissions. However, following a landmark court settlement by the National Association of Realtors, buyers are now expected to negotiate compensation directly with their own agents. If you’re offering to pay this fee to attract buyers or help close a deal, on a $730,600 median-priced New York City home, you can expect to pay $18,265–$21,918.
Detailed Closing Costs: $14,612–$36,530
Closing costs in New York City typically average 2%–5% of the home’s sale price. Whether your property falls in the high or low end of this range depends on its value, condition, the purchase agreement, and what services you end up paying for. On a median-priced home of $730,600, you might pay $14,612–$36,530. Below are some of the typical types of closing costs you can expect in a New York City home sale:
- Home Preparations: To help make your New York City home stand out, you’ll want to invest in curb appeal improvements such as professional cleaning, landscaping, or property staging.
- Renovations/Repairs: Fixing or updating your New York City home to meet buyer expectations or satisfy inspection requests.
- Title Service Fees: Title company work required to verify legal ownership and help manage the transfer of the property. The buyer typically pays for this in New York City.
- Owner’s Title Insurance: A one-time insurance premium paid by the seller in New York City to protect the buyer from title issues or ownership disputes. The buyer traditionally pays for this in New York City.
- Transfer Taxes: New York State home sellers pay a state transfer tax rate of $2 for every $500 of the property’s value. There are also additional city taxes. (See more below.)
- Recording Fees: This is a relatively small fee you’ll need to pay to the local city or county recording office to officially record the change in property ownership.
- Buyer Incentives: With buyers being more hesitant in the current Houston market, you may need to offer concessions or credits to sweeten a deal, such as paying the buyer’s agent fees or funding an interest rate buydown.
- Other Costs: You’ll likely have some miscellaneous expenses that are not covered in other categories, such as attorney fees and HOA transfers. (An attorney is required to sell a house in New York.)
- Moving Expenses: While paying for movers or a rental truck is not technically a closing cost, you should include this expense in your budget, which can range from $883 to $7,000.
New York City levies city-wide transfer taxes and a mansion transfer tax on homes valued over $2 million, in addition to the statewide taxes. New York State imposes a Real Estate Transfer Tax of $2 for each $500 of consideration for residential property and an additional 1% mansion tax on residences where consideration is $1 million or more. Depending on the sale price, the city can range from 1% to 1.475% for residential property transactions.
