To prepare you for what fees you\u2019re obligated to cover, we did the research and spoke to a top New York agent about what to expect to pay for at closing.<\/p>\n\n\n\n\n\n
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Get an all-cash, no-obligation offer on your New York home through HomeLight’s Simple Sale platform whenever you’re ready. Receive your offer in 24 hours and close in as few as 7 days. No showings, no repairs, no open houses.<\/p>\n \n
New York sellers cover these closing costs<\/h2>\n
Closing costs are the fees paid to finalize the real estate transaction. Some of them are negotiable, but certain charges are mandatory, such as taxes and fees for home sales in New York City. There can be additional costs depending on the type of property sold. It\u2019s a good idea to check with your real estate agent, but be prepared because New York sellers are almost always responsible for these.<\/p>\n
Mortgage payoff<\/h3>\n
No matter what state you live in, if you sell your house before paying off the mortgage, you\u2019ll have to pay it off at closing. You\u2019re also responsible for paying off any home equity loans you may have taken out against your mortgage.<\/p>\n
According to the most recent numbers, the National Association of Realtors (NAR) reports that the median homeownership tenure in 2024 is 15 years<\/a>. While much of New York state is in line with this number, the average length of home ownership<\/a> in New York City is 9.8 years, while it is longer in select cities, like Buffalo, where the average is 16 years<\/a>.<\/p>\n Considering that most mortgages last 30 years, but the average tenancy is around 15, that leaves most sellers with a substantial amount to pay off at closing.<\/p>\n Property taxes can fluctuate with location and home value. To determine your home\u2019s property taxes<\/a>, New York state calculates by multiplying the taxable value with the tax rate by first estimating the property\u2019s value, and then multiplying that by the level of assessment.\u00a0<\/a><\/p>\n How much you must pay in property tax at closing depends in part on when you sell your home and in part on where you live. Most parts of New York collect property taxes in arrears or concurrently, like New York City.<\/p>\n That is, New York City\u2019s fiscal year<\/a> begins in July, with property taxes due quarterly, on July 1, October 1, January 1, and April 1.<\/p>\n But don\u2019t worry: the amount you owe at closing is prorated on a daily basis, according to Tiffany Hilbert<\/a>, a top Rochester agent who works with over 69% more single-family homes than the average Rochester agent. So you\u2019ll only pay for the days you actually lived in the home. \u201cThey break it down at a very granular level.\u201d<\/p>\n Hilbert says taxes in New York State are higher than average compared to the rest of the country, but there\u2019s some relief available with the potential to deduct up to $10,000<\/a> of your property taxes \u2014 as per the Internal Revenue Service \u2014 if you qualify. As a seller, it\u2019s always important to consult with a tax professional to see what deductions and potential exemptions might be available to you. The following are a few examples that may be available to New Yorkers.<\/p>\n To prove you\u2019ve paid off the mortgage balance, you\u2019ll receive a deed of reconveyance<\/a>, which must be recorded in the county in which the property is located. Although the title insurance<\/a> company will often take care of recording this deed of reconveyance, the seller pays the applicable fee.<\/p>\n The fees involved are calculated to cover the charges for recording the mortgage and deed. While these costs vary, they\u2019re typically between $50 and $65<\/a>. You can always check with your real estate agent or the local office that handles deed transfers to find out how much their administrative fees are.<\/p>\n The county recorder files the deed of reconveyance in the county\u2019s records. Conveyance recording fees in New York State is $42<\/a> for the cover page and one document page, but there may be additional fees<\/a> that can be imposed by certain counties. In general, the buyer pays to record the deed and mortgage.<\/p>\n Real estate transfer taxes<\/a> are a one-time fee imposed as a percentage of the property value. They generate revenue for the state, county, or city.\u00a0<\/a><\/p>\n Also known as a deed transfer tax<\/a>, stamp tax, conveyance tax, or a documentary transfer tax, they are one of the priciest<\/a> and least popular of all taxes associated with home sales. \u201cIt is not negotiable,\u201d Hilbert emphasizes.<\/p>\n New York State levies a real estate transfer tax on conveyances of real property at a rate of two dollars for each $500<\/a>. So, for example, using the median sale price of $490,000<\/a>\u00a0 for a home in New York, the state transfer tax would amount to $1,960. There are exceptions for transferring property into a trust, divorce, and inheritance.<\/p>\n Adding insult to injury, the Internal Revenue Service does not allow deductions of transfer taxes for the sale of a personal home<\/a>.<\/p>\n In addition to state transfer taxes, some areas impose additional taxes. For example, since 2019, conveyances in New York City<\/a> have been subject to an additional tax of $1.25 for each $500 or fraction thereof when the entire conveyance of residential property is worth $3 million or more. An additional 1% tax is also imposed on the sale price (mansion tax) for residences where consideration is $1 million or more.<\/p>\n As Hilbert says, \u201cNew York City is a completely different animal.\u201d Residential properties that sell for less than $500,000 receive a 1%<\/a> tax rate, while homes that sell for more than $500,000 pay a rate of 1.425% to the city. That means, for example, a home at the median residential sales price of $720,000<\/a> in New York City would be taxed $10,260.<\/p>\n The average real estate agent commission in New York is 6%, just slightly more than the national average of 5.8%<\/a>. This number includes both the fee for the buyer\u2019s and the seller\u2019s agents. A seller in New York would be expected to pay for the listing agent\u2019s commission of around 3%, but during negotiations or to serve as additional marketing for the property, the seller may choose to cover the buyer\u2019s agent\u2019s commission<\/a> as well. That means that for the sale of a $720,000 home in New York, the seller could pay anywhere around $21,600 to $43,200.<\/p>\n Since there is no commission rate set by the State of New York, a seller can negotiate the fee with the agent. To find commission information specific to your area, enter your city into HomeLight\u2019s commission calculator<\/a>.<\/p>\n Escrow<\/a> is the period between accepting an offer and closing when the buyer\u2019s earnest money enters into an escrow account held by an impartial, third-party escrow company until the deal is done. Escrow officially ends<\/a> at closing when all funds have been disbursed and all documents have been completed.<\/p>\n The seller and buyer usually split escrow fees, which are part of the overall fees for selling a home<\/a>. The national average escrow fee is about 1%.<\/p>\n A title search ensures that the property has no liens, judgments, or other claims from outside parties (or \u201cencumbrances\u201d) on it that would prohibit a sale. Most states require a title search to legally purchase a property.<\/p>\n Title companies typically charge between $150 and $500 to conduct a title search. Most lenders require them. Since the mortgage lender requires it, in many states, the buyer pays. In New York State, however, Hilbert says sellers typically pay for this abstract of title search<\/a>.<\/p>\nProperty taxes<\/h3>\n
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\nLocal governments and school districts in New York State can grant a reduction on the amount of property taxes paid by qualifying senior citizens<\/a> by reducing the taxable assessment of the senior\u2019s home by up to 50% under the \u201csliding scale option\u201d based on income limitations.<\/li>\n
\nThe STAR exemption<\/a> is a sort of credit for school tax relief<\/a>. Hilbert calls it a tax rebate and explains that homeowners must apply for it by March every year. She also notes that the \u201ctrue taxes\u201d of a property must be shown on the listing, prior to this potential exemption.<\/li>\n
\nThere are exemptions for veterans, people with disabilities, agricultural properties, and more. The buyer\u2019s lender will usually calculate who owes what at closing, saving sellers from a math headache.<\/li>\n<\/ol>\nLoan reconveyance fee<\/h3>\n
Reconveyance recording fee<\/h3>\n
Real estate transfer tax<\/h3>\n
Local real estate transfer tax<\/h3>\n
Real estate agent commission<\/h3>\n
Escrow fee<\/h3>\n
Title search<\/h3>\n