Closing costs are not finalized until a few days before closing, however it is possible to estimate your closing costs. As a seller, you can expect to pay approximately 10%-13% of the purchase price in expenses. These expenses do not include costs associated with paying off any mortgage or line of credit secured by the property to be sold.
The expenses included in the estimate are the real estate broker fees (typically 4%-6% of the purchase price), the seller’s attorney’s fees, transfer taxes for New York State and your County, charges paid to the title company to file and record the deed and all applicable transfer tax forms and otherwise facilitate the closing.
If the property sold is a coop or a condo, the seller may also be required to pay the legal fees for the coop attorney or the condo attorney, any move out deposit or move out fee and any flip tax (which may be 1%-3% of the purchase price).
If the seller is not a New York State resident when the property is sold, an estimated New York State income tax must be paid at closing as a condition to the deed being recorded. An IT-2663 form must be completed in addition to the applicable transfer tax forms.
Finally, it should be mentioned that these closing costs are estimates only and may not apply to every scenario. Different deals have different terms which may vary from the information provided above. There may be additional costs or reduced costs or different parties may be responsible for different expenses.[Back to Residential Purchases and Sales]