Seller closing costs in Manhattan, nyc

Selling your property can be an exciting and busy time, but before you count the profits from all of your hard work you have to factor in the loss you’ll take from closing costs. These closing costs are high fees that affect both buyers and sellers whenever an apartment changes hands.

Closing costs will be different depending on where you live, but sellers should expect to pay more than buyers because they’re usually responsible for covering the broker’s commission in addition to other costs. However, like several costs on the list whether the seller or buyer pays the cost may be negotiable.

Thankfully, these costs usually don’t come out of pocket as they’re generally deducted from the profit of the sale, however, if your property is sold with low equity or value you may have to cover the costs yourself.

Co-op Apartment Costs

The closing costs can differ depending on what kind of property you’re selling. For instance, the costs associated with co-op apartments can be higher because of the inclusion of flip taxes, also called transfer fees. These are fees that go to support the costs of the building’s upkeep. Either buyers or sellers can be responsible for paying this fee.

• Own Attorney: Varies
• Stock Transfer Stamps: $0.05 per share
• NYC Real Property Transfer Tax:  1% of sale price if $500K or less; 1.425% of sale price if more than $500k
• NYS Transfer Tax: 0.4% of sale price for transactions less than $3M of 0.65% of sale price for transactions greater than or equal to $3M
• UCC-3 Filing: $75 – $125
• Flip Tax (if applicable): Determined by co-op building (unless otherwise stated or negotiated)
• Payoff Bank Attorney (if applicable): $450 – $550
• Managing Agent Fees: $650 and up
• Move-Out Deposit: $1,000
• Broker Commission: 6% of sale price
• Estate Fees: Co-op may impose additional fees for estate sales
• Lost Stock & Lease Fees: $250 and up
• E Tax Filing (ACRIS): $100
• NYS Capital Gains Tax Withholding: 8.97% of taxable gain on sale (Only applicable to non-NY residents)
• Federal Withholding Tax (FIRPTA): 10% – 15% of sale price if seller is non-U.S> resident (Additional taxes on capital gain associated with the sale of real estate including Federal, State and the specialized Medicare tax may apply. Consult with your tax professional to ensure compliance with all applicable tax regulations. Corcoran is not a licensed tax advisor.)

Mortgage Associated Fees

• Origination Costs – points: 0 – 3% of loan
• Application, Credit Check, etc: $500 and up
• Appraisal: Varies
• Bank Attorney: $800 – $1,250
• UCC-1 Filing: $125

Townhouse Costs

The closing costs for townhouses are general less than that of co-op apartments because they don’t include flip taxes. However, you may need to hire your own attorney to inspect the property thoroughly and there are can be more fees associated with real estate taxes depending on the value of the property.

• Own Attorney: Varies
• NYC Real Property Transfer Tax: 1% of sale price if $500K or less; 1.425% of sale price is more than $500K
• NYS Transfer Tax: 0.4% of sale price for transactions less than $3M, 0.65% of sale price for transactions greater than or equal to $3M
• Reserve Fund Contribution (if applicable): Determined by condo board; Payable by buyer unless otherwise stated
• Payoff Bank Fees (if applicable): $250 and up
• Managing Agent Fees: $650 and up
• Move-Out Deposit: $500 – $1,000 (usually if refundable if no damage)
• Broker Commission: 6% of sale price
• E Tax Filing (ACRIS): $100
• Property Condition Disclosure Statement Waiver Fee: $500 – $1,000
• NYS Capital Gains Tax Withholding: 8.97% of taxable gain on sale (Only applicable to non-NY residents)
• Federal Withholding Tax (FIRPTA): 10% – 15% of sale price if seller is non-U.S. resident (Additional taxes on capital gain associated with the sale of real estate including Federal, State and the specialized Medicare tax may apply. Consult with your tax professional to ensure compliance with all applicable tax regulations. Corcoran is not a licensed tax advisor.)

Mortgage Associated Fees

• Origination Costs – points: 0 – 3% of loan
• Application, Credit Check, etc: Varies
• Appraisal: Varies
• Bank Attorney: $800 – $1,250
• Mortgage Recording Tax: 1.8% for all mortgages less than $500,000; 1.925% for all mortgages of $500K or more minus $30 for townhomes
• Real Estate Tax Escrow: 0 – 6 months, depending on lender requirements

Exclusive to New Developments

• NYC Real Property Transfer Tax: 1% to 1.425% of sale price
• NYS Transfer Tax: 0.4% of sale price, 0.65% of sale price for transactions greater than or equal to $3M (Transfer taxes are calculated and added to sale price (for tax purposes only) and then recalculated based on the bulked up price)
• Sponsor Attorney Fee: $2,500 – $3,500
• Working capital fund contribution: One-time fee equal to 1 or 2 months common charges, depending on condominium