Closing Costs in New York City

A Complete Guide for Buyers and Sellers

By Pete Weinman, Staten Island Real Estate Lawyer | Updated May 2026 | www.StatenIslandLaw.com

When you are buying or selling a home in New York City — whether on Staten Island, in Brooklyn, Queens, the Bronx, or Manhattan — closing costs can be one of the biggest surprises of the transaction. I represent both buyers and sellers in residential real estate closings, and the question I get most often before closing day always comes down to the same thing: how much cash do I need to bring?

This guide gives you a complete, current breakdown of every significant closing cost — for buyers and sellers — with real numbers based on how transactions actually work in 2026.

The Quick Answer: What Do Closing Costs Run in NYC?

	Buyer	Seller
Typical range	3% – 6% of purchase price	4% – 8% of sale price*
On a $500,000 transaction	$15,000 – $30,000	$20,000 – $40,000
On a $750,000 transaction	$22,500 – $45,000	$30,000 – $60,000
On a $1,000,000 transaction	$30,000 – $60,000+	$40,000 – $80,000+

*Seller range reflects current commission norms post-August 2024. See the broker commission section for details.

These figures assume a one-to-four family house with a mortgage. Co-op buyers save on certain costs; co-op sellers pay a flip tax. Cash buyers skip the mortgage recording tax and all mortgage-related fees.

Buyer Closing Costs: Full Breakdown

Mortgage Recording Tax

This is typically the largest single closing cost for NYC buyers. New York City imposes a mortgage recording tax on every new mortgage recorded against real property. The tax is based on your loan amount — not the purchase price.

Loan Amount	NYC Combined Rate
Under $500,000	1.800%
$500,000 or more	1.925%

Example: $520,000 mortgage × 1.925% = $10,010 in mortgage recording tax

Important notes:

• Cash purchases: no mortgage recording tax

• Co-op purchases: no mortgage recording tax (no deed is recorded; you’re buying shares in a corporation)

• New construction transactions sometimes offer mortgage recording tax credits or exemptions — ask your attorney

Mansion Tax

The mansion tax applies to residential purchases at $1,000,000 or more and is paid by the buyer.

Outside New York City, the tax is a flat 1% regardless of purchase price. Within New York City (including Staten Island), the tax is progressive:

Purchase Price	Mansion Tax Rate
$1,000,000 – $1,999,999	1.00%
$2,000,000 – $2,999,999	1.25%
$3,000,000 – $3,999,999	1.50%
$4,000,000 – $4,999,999	2.25%
$5,000,000 – $9,999,999	2.50%
$10,000,000 – $14,999,999	3.25%
$15,000,000 – $19,999,999	3.50%
$20,000,000 – $24,999,999	3.75%
$25,000,000 and above	3.90%

The progressive rates above 1% apply within New York City only (enacted April 2019). Outside NYC, the mansion tax is a flat 1% on all $1M+ purchases regardless of price.

Example: $1,200,000 single family home — mansion tax is $12,000 (1% of the full $1,200,000). The rate applies to the entire purchase price, not just the amount above the threshold.

Title Insurance

Title insurance protects you and your lender against defects in the property’s ownership history — undisclosed liens, prior ownership claims, recording errors, and gaps in the chain of title. New York State regulates title insurance premiums through the Department of Financial Services, so rates are consistent across providers for the same coverage amount.

Two policies are typically purchased:

• Owner’s Policy: Protects you — one-time cost, lasts as long as you own the property

• Lender’s Policy: Protects your lender — required if you have a mortgage; does not protect you

Approximate costs for a $650,000 single family home:

• Owner’s policy: $2,200 – $3,000

• Lender’s policy (with simultaneous issue discount): $1,000 – $1,500

• Combined: approximately $3,200 – $4,500

The “simultaneous issue” discount applies when you purchase both policies from the same title company at closing. Always ask for it — it is standard practice and every title company should offer it automatically.

Attorney Fees

New York requires attorneys for real estate transactions. Your attorney reviews and negotiates the contract, orders and analyzes the title search, resolves issues before closing, coordinates with your lender, and represents you at the table.

Transaction Type	Typical Buyer’s Attorney Fee
Standard 1–4 family house (Staten Island / outer boroughs)	$2,000 – $3,500
NYC condo	$2,500 – $4,000
Co-op	$3,000 – $5,000
New construction / sponsor sale	$3,000 – $5,000+

Lender’s Attorney Fee

If you have a mortgage, your lender will have its own attorney at closing — and the buyer pays that fee. Expect $750 – $1,500 for the lender’s attorney.

Appraisal

Your lender requires a professional appraisal to confirm the property’s value before issuing the loan. Fees in New York typically run:

• Single-family home: $500 – $800

• Multi-family: $700 – $1,200

If the appraisal comes in below the agreed purchase price, you may need to renegotiate the price, bring additional cash to closing, or formally challenge the appraisal.

Home Inspection

For any one-to-four family house, a professional inspection before your contract becomes binding is one of the best investments you can make. Standard inspection fees run $500 – $1,000.

Additional specialized inspections:

• Pest / termite: $150 – $350

• Sewer scope: $200 – $400

• Mold: $300 – $700

• Structural engineer: $500 – $1,500

• Chimney: $200 – $500

Loan Origination and Bank Fees

Fee	Typical Range
Origination fee	0.5% – 1% of loan amount
Application fee	$250 – $500
Processing fee	$300 – $900
Underwriting fee	$400 – $900
Credit report	$25 – $75

Get quotes from at least three lenders before committing. These fees vary and are often negotiable.

Recording Fees

The county clerk charges a fee to record the deed and mortgage — typically $200 – $600 depending on the county and number of pages.

Prepaid Costs and Escrow

At closing you will prepay certain costs that fund your escrow account:

• Homeowners insurance: First full year’s premium (typically $1,500 – $4,000 for a single-family home)

• Property taxes: Usually 2 – 6 months prepaid

• Prepaid interest: Daily interest from your closing date through the end of that month

• PMI (if applicable): Required if your down payment is less than 20%

Timing tip: Closing near the end of the month minimizes prepaid interest. Closing on the 29th means 1–2 days of prepaid interest; closing on the 2nd means nearly a full month. On a $520,000 loan at 7%, the difference is over $2,500.

Sample Buyer Closing Costs — $650,000 Staten Island Single Family House

Assumes 20% down ($130,000), $520,000 mortgage

Fee	Estimated Cost
Mortgage Recording Tax (1.925% on $520,000)	$10,010
Title Insurance (owner + lender, simultaneous issue)	$3,800
Attorney Fee	$2,800
Lender’s Attorney Fee	$1,000
Appraisal	$650
Home Inspection	$750
Loan Origination (0.75%)	$3,900
Processing / Underwriting Fees	$1,200
Recording Fees	$400
Application / Credit Fees	$400
Homeowners Insurance (prepaid)	$2,000
Property Tax Escrow (3 months)	$2,500
Prepaid Interest (est. 10 days)	$800
Total Estimated Buyer Closing Costs	~$30,210 (~4.6%)

That is approximately 4.6% of the purchase price, in addition to the $130,000 down payment. Total cash needed to close: approximately $160,000.

If the purchase price were $1,000,000 or more, add the mansion tax on top of this figure.

Seller Closing Costs: Full Breakdown

Sellers have their own set of costs — completely separate from the buyer’s. If you are selling a home on Staten Island or anywhere in NYC, here is what to expect.

Broker Commission

This has changed significantly since August 2024. See below.

Prior to August 2024, sellers routinely paid a combined 5% to 6% commission split between the listing agent and the buyer’s agent. Following the NAR settlement (effective August 17, 2024), sellers are no longer required to offer buyer’s agent compensation through the MLS.

Today, most sellers pay only their listing agent’s commission, typically 2% to 3% of the sale price. Some sellers voluntarily offer a contribution toward the buyer’s agent fee as an incentive — particularly in a competitive market — but this is a business decision, not a legal requirement.

On a $650,000 sale at a 2.5% listing commission: $16,250. If you see older guides quoting “8% to 10% seller closing costs,” that figure is built on pre-2024 commission norms and likely overstates what most sellers pay today.

New York State Transfer Tax

Sale Price	NYS Transfer Tax Rate
Under $3,000,000	0.4%
$3,000,000 and above (residential)	0.65%

On a $650,000 sale: $2,600 in NYS transfer tax.

NYC Real Property Transfer Tax (RPTT)

If the property is in New York City (including Staten Island), the seller also pays the City’s RPTT.

Property Type	Sale Price	RPTT Rate
Residential (1–3 family)	$500,000 or less	1.000%
Residential (1–3 family)	Over $500,000	1.425%
Commercial	$500,000 or less	1.425%
Commercial	Over $500,000	2.625%

Combined transfer taxes on a $650,000 Staten Island single family home sale:

• NYS Transfer Tax: $2,600 (0.4%)

• NYC RPTT: $9,263 (1.425%)

• Total transfer tax burden: $11,863

Seller’s Attorney Fee

The seller retains separate legal counsel. For a standard Staten Island single family home sale: $2,000 – $3,500.

Payoff of Existing Mortgage

Your mortgage is paid off at closing from the sale proceeds. Most lenders charge a payoff processing fee of $100 – $500. Check your loan documents for prepayment penalties — rare on residential mortgages originated after 2014, but worth confirming.

Capital Gains Tax

Primary residence exclusion: If you have owned and used the home as your primary residence for at least 2 of the last 5 years, you can exclude up to $250,000 of gain (single filers) or $500,000 (married filing jointly) from federal capital gains tax.

Federal rate: 0%, 15%, or 20% depending on income for long-term gains. However, if your adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly), you also owe the 3.8% Net Investment Income Tax (NIIT) on the gain — bringing the effective federal rate to as high as 23.8%. On a transaction with significant appreciation, the NIIT alone can cost tens of thousands of dollars.

New York State: Capital gains are taxed as ordinary income. For most sellers with meaningful gains, the realistic NYS rate will fall between 6.85% and 9.65% depending on total income.

Strongly recommended: speak with your tax advisor before closing on a property where you expect a substantial gain. The numbers are real money.

Sample Seller Closing Costs — $650,000 Staten Island Single Family House

Fee	Estimated Cost
Broker Commission (listing only, 2.5%)	$16,250
NYS Transfer Tax (0.4%)	$2,600
NYC RPTT (1.425%)	$9,263
Attorney Fee	$2,500
Payoff Processing Fee	$250
Miscellaneous (courier, filing, etc.)	$400
Total Estimated Seller Closing Costs	~$31,263 (~4.8%)

A co-op seller would add the applicable flip tax to this figure.

Strategies to Reduce Your Closing Costs

1. Explore a CEMA (Consolidation, Extension and Modification Agreement)

A CEMA allows a buyer to pay the mortgage recording tax only on the new money borrowed — not on the seller’s existing loan balance. If the seller has a $300,000 remaining mortgage and your new loan is $520,000, you pay the tax only on the $220,000 difference rather than the full $520,000.

At 1.925%, that saves approximately $5,387 in this example.

CEMA transactions involve processing fees from both lenders (typically $500 – $1,500 each) and require both lenders to participate — not all will. The transaction also takes longer to coordinate. Ask your attorney early in the process whether CEMA makes sense for your specific deal.

2. Negotiate Seller Concessions

In a buyer’s market, sellers may agree to contribute toward the buyer’s closing costs. On a conventional loan, the seller can typically cover 3% to 9% of the sale price in concessions depending on the buyer’s down payment percentage. This must be structured properly in the contract.

3. Shop Lender Fees

Origination fees, processing fees, and rate lock fees vary meaningfully between lenders. Get quotes from at least three before committing. Even modest differences in origination costs add up quickly on a $500,000+ loan.

4. Close Late in the Month

You pay prepaid interest from your closing date through the end of that calendar month. Closing on the 28th means 2–3 days of prepaid interest. Closing on the 2nd means nearly a full month. On a $520,000 loan at 7%, the difference is over $2,500.

5. Ask Your Attorney About Service Providers

For services where you have a choice — homeowners insurance, inspections — an experienced local attorney can often point you toward reputable providers at fair prices. You are not required to use any vendor that the lender or real estate agent recommends.

Review Your Loan Estimate and Closing Disclosure

Loan Estimate: Your lender must provide this within 3 business days of receiving your mortgage application. It itemizes every lender-related cost. Review it carefully and keep it.

Closing Disclosure: Lenders must provide this at least 3 business days before closing. Compare it line-by-line to your Loan Estimate.

Look for:

• Fees that were not on the Loan Estimate

• Amounts that changed without explanation

• Services you did not authorize

• Math errors

• Anything you do not recognize

Do not hesitate to question anything that looks off. That is exactly what your attorney is there for.

Frequently Asked Questions

How much are closing costs in NYC for a buyer?

For a single family home in Staten Island or the outer boroughs, expect 3% to 5% of the purchase price — driven primarily by the mortgage recording tax and title insurance. If the purchase price is $1,000,000 or more, add the mansion tax on top.

How much are closing costs in NYC for a seller?

Under current commission norms, most Staten Island sellers pay roughly 4.5% to 6% of the sale price when paying only a listing commission. The transfer tax alone (state + city) runs approximately 1.825% on sales over $500,000.

Who pays the mansion tax in New York?

The buyer. It applies to residential purchases at $1,000,000 or more. The rate is a flat 1% outside NYC; in NYC the rate is progressive, starting at 1% and rising to 3.9% for properties over $25,000,000.

What is a CEMA and is it worth it?

A CEMA reduces your mortgage recording tax by limiting the taxable base to new money borrowed rather than your entire loan amount. It requires lender cooperation on both sides, adds time and processing costs, and isn’t available in every transaction. But when the math works, the savings are substantial. Have your attorney evaluate it as soon as you are under contract.

When do I pay closing costs?

At the closing table on the day the transaction closes. Buyers bring a certified or cashier’s check (or wire funds in advance) for the total amount. Seller costs are deducted from the sale proceeds before you receive your net check.

Can I roll closing costs into my mortgage?

Generally no — not on a standard purchase mortgage. A lender credit (accepting a slightly higher interest rate in exchange for reduced upfront costs) is an option worth comparing if you are cash-constrained at closing.

Ready to Get Specific Numbers for Your Transaction?

Closing costs in New York City are real money, and the numbers above are general ranges. Every transaction is different. I represent buyers and sellers in residential real estate transactions on Staten Island and throughout New York City. If you would like a specific estimate for your transaction before you make an offer or sign a listing agreement, give me a call or send an email.

Pete Weinman — Staten Island Real Estate Lawyer

260 Christopher Lane, Suite 201 | Staten Island, NY 10314

📞 718-442-2010 📱 Text: 718-957-8121 📧 Weinman@StatenIslandLaw.com 🌐 www.StatenIslandLaw.com

Legal Disclaimer

This article provides general information about closing costs in New York City as of 2026. Tax rates, fees, and regulations are subject to change. Nothing in this article constitutes legal advice applicable to your specific transaction. No attorney-client relationship is formed by reading this content. Consult your real estate attorney and tax advisor for guidance specific to your circumstances.

Typical Closing Costs in New York City