What You Need to Know Before Getting the Keys

Buying a home in New York—whether it’s a condo in Manhattan, a townhouse in Westchester, or a charming colonial in the suburbs—is a major milestone. But as you’re budgeting for that big purchase, it’s crucial not to overlook closing costs.

While most buyers focus on the down payment, closing costs are the often-overlooked expenses that can add up quickly. Here’s a helpful guide to what they are, how much to expect, and what you’re actually paying for.

What Are Closing Costs?

Closing costs are the fees and expenses you pay at the end of a real estate transaction—when ownership officially transfers from the seller to you. They include lender fees, taxes, legal expenses, and other administrative charges. In New York, closing costs can be significantly higher than the national average, especially in New York City.

How Much Are Closing Costs in New York?

On average, buyers in New York should expect to pay between 2% to 5% of the home’s purchase price in closing costs. For example:

On a $600,000 home, that’s around $12,000 to $30,000.
In co-op or condo purchases, fees can vary depending on the building.
In new developments, you might also be responsible for sponsor attorney fees and transfer taxes.

Breakdown of Common Buyer Closing Costs

Here are the most typical expenses buyers face in New York:

Mortgage-Related Fees

Loan Origination Fee – Charged by your lender to process your loan (0.5%–1% of the loan amount).
Appraisal Fee – Required by your lender to verify the property’s value. ($500–$800)
Credit Report Fee – To pull your credit report for mortgage approval. ($25–$50)

Title-Related Costs

Title Insurance – Protects you and your lender against title disputes or prior claims. This is a one-time fee and varies by purchase price.
Title Search & Recording Fees – To verify ownership and record your deed with the county clerk.

Legal Fees

Attorney Fee – In New York, it’s customary for both the buyer and seller to have an attorney. A buyer’s attorney typically charges $1,500–$3,000 or more depending on complexity.

Taxes & Government Fees

Mansion Tax – If the purchase price is $1 million or more, buyers must pay 1% of the purchase price. This increases on a sliding scale for properties over $2 million.
NYC/NYS Transfer Taxes – Usually paid by the seller, but in new developments, these might be passed on to you.

Building/Co-op/Condo Fees (If Applicable)

Application Fees – For co-ops or condos, often $250–$1,000.
Move-in Fees/Deposits – Refundable deposits or fees to reserve elevators or protect the property.
Flip Tax – Usually a seller’s fee, but always check as it could be passed on.

Tips to Manage and Prepare for Closing Costs

Ask for an estimate early – Your lender must provide a Loan Estimate that outlines your closing costs. Don’t be afraid to ask questions.
Negotiate where possible – Sometimes sellers or developers are willing to cover part of the costs, especially in a buyer’s market.
Work with a knowledgeable real estate agent and attorney – Professionals familiar with local norms can help you avoid surprises.
Budget beyond the down payment – Be sure your savings plan accounts for both closing costs and moving expenses.

Final Thoughts

While closing costs might feel overwhelming at first glance, being informed is the key to confidence. Knowing what to expect—and planning ahead—makes the homebuying experience much smoother.

Whether you’re buying your first home or upgrading your lifestyle, having the right team in your corner makes all the difference. At Ashly Merced Real Estate, we guide you through every detail—from pre-approval to closing day—with clarity, care, and expertise.

Need help estimating your closing costs or understanding your next steps?
Let’s connect for a personalized consultation.

A Buyer’s Guide to Closing Costs in New York