How Much Are the Fees When Buying a Condo in NYC?

How Much Are the Fees When Buying a Condo in NYC? We’ll demystify this topic in the following video. I’m Nick at Hauseit, based here in NYC. Visit https://hauseit.com to save money if you’re buying or selling a co-op, condo or townhouse here in NYC. So let’s get started!

NYC Buyer Closing Cost Calculator: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/

Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/

The fees associated with buying a condo in New York City range from 2% to 6%. Your closing costs will be between 3% to 4% if you’re financing. An all-cash purchase will have slightly lower closing costs, around 2% on average. If you’re buying a new construction condo, closing costs can reach up to 6%.

In this video, we will focus on the most common scenario in NYC: you’re buying a condo, and you’re financing around 80% of the purchase price.

In this scenario, your closing costs will be between 3% to 4% of the purchase price. So what does this consist of?

Well, let’s take a look at Hauseit’s buyer closing cost calculator for NYC. This calculator gives you an itemized breakdown of all buyer closing costs so you can better understand the big picture when it comes to the costs of buying a home in NYC.

The first item is the Mansion Tax. This is by far the largest closing cost. However, the good news is that it only applies if your purchase price is $1 million or more. For purchases of $1 million or more and below $2 million, the Mansion Tax is 1% of the entire purchase price. There are 7 additional Mansion Tax brackets.

The highest rate of 3.9% applies to purchases of $25 million or more. Please check out our dedicated article on the NYC Mansion Tax for more information.

NYC Mansion Tax Calculator: https://www.hauseit.com/nyc-mansion-tax-calculator/
NYC Mansion Tax FAQ: https://www.hauseit.com/nyc-mansion-tax/

Moving along, the next closing cost is Title Insurance. The cost of the insurance policy itself is around 0.45% to 0.5% of the purchase price. In addition, there are a bunch of other random fees associated with the issuance of a title insurance policy, which are between $1,000 and $2,000 all-in.

Let’s do a quick refresher: Title insurance is an insurance policy against any defects or future claims against the title for issues which were unknown at the time of purchase when the original title search was conducted.

FAQ on Title Insurance in NYC: https://www.hauseit.com/what-is-title-insurance-nyc/

This means you’ll be protected if a previous owner comes out of the woodwork ten years after your purchase, and claims that there was a mistake in the chain of title and that he never sold the property to the seller of your property, which means the seller of your property didn’t have a right to sell it to you.

The next closing cost is the buyer attorney fee.

The average real estate attorney fee for a purchase or sale transaction in NYC is flat rate of $2,000 to $4,000. Lawyer fees can be as high as $5,000 for a more complex transaction and for new developments.

There are also light-touch, discount lawyers available who charge flat fees as low as $800. Visit https://hauseit.com for more information on real estate legal fees in NYC as well as what questions to ask when interviewing attorneys.

Questions to Ask Your Real Estate Attorney in NYC: https://www.hauseit.com/questions-to-ask-your-real-estate-attorney-in-nyc/

Moving along, the next items consist of the move-in deposit, board application fees and the move-in fee. These vary by building. In general, expect an application fee of at least $500. There may also be a separate credit check fee for each applicant.

The next closing cost is the deed recording fee. There may also be additional recording fees for any required power of attorneys. The total cost of recording fees is typically a few hundred dollars.

Last but not least, we have financing related costs.

Unfortunately, if you’re financing a condo purchase it means you’re subject to the Mortgage Recording Tax. This massive closing cost ranges from 1.8% to 1.925% of the loan size for most purchases. It’s by far the largest buyer closing costs in NYC.

Other mortgage related costs consist of a loan application fee, appraisal fee, bank attorney fee as well as the mortgage recording fee.

Please note that your lender requires a specific title insurance policy for the bank itself. However, the cost of this is reflected in the previous closing cost estimate we provided for title insurance, which is between 0.45% and 0.5% of the purchase price.

In conclusion, buyer closing costs for a condo in NYC are 3% to 4%, assuming you’re financing. They’re a bit lower, closer to 2%, if you’re paying all-cash.

Save 6% When Selling in NYC: https://www.hauseit.com/agent-assisted-fsbo/
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Hauseit LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
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