How Much Are Buyer Closing Costs in NYC: https://www.hauseit.com/buyer-closing-costs-nyc/
Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
Buyer closing costs in NYC are between 1.5% to 6% of the purchase price. Buyer closing costs are higher for condos vs. co-ops, and closing costs are the highest for new developments.
The largest buyer closing costs in NYC include the Mortgage Recording Tax of 1.8% to 1.925% as well as the Mansion Tax of 1% on purchases of $1 million or more. Other large buyer closing costs include Title Insurance for condos and houses, real estate attorney fees as well as lender, building and miscellaneous fees.
You can estimate your buyer closing costs in NYC using Hauseit’s interactive closing cost for buyers.
Mortgage Recording Tax: 1.8% to 1.925%
The Mortgage Recording Tax is 1.8% for loans below $500k and 1.925% for loans of $500k or more. The actual MRT rates are 2.05% and 2.175%, however most banks generally cover 0.25% of the MRT for residential deals.
The Mortgage Recording Tax is not applicable to co-ops, as the tax only applies to real property. Co-ops are not considered to be real property since unit owners actually purchase shares in the private corporation that owns the co-op.
Because the MRT is based on the loan size as opposed to the purchase price, you can lower your buyer closing costs by paying all-cash or by increasing the size of your down payment.
Mansion Tax: 1%
The Mansion Tax is a 1% tax paid by buyers on purchases above $1 million. The Mansion Tax is a statewide tax collected by the New York State Department of Taxation and Finance.
Originally imposed in 1989, the tax has not been adjusted for inflation since it was passed into law. As a result, the name ‘Mansion Tax’ is a misnomer since it now applies to the sale of properties which are very un-mansion like in nature: such as small 1br apartments or even alcove studios in Manhattan.
Title Insurance: 0.4% to 0.5%
Title Insurance is approximately 0.4% to 0.5% of the purchase price. It’s a one-time fee which provides a buyer with an insurance policy against defects or future claims against the title of the property being purchased which were unknown at the time of purchase.
Attorney Fees: $2,000 to $3,000
The typical real estate attorney fee for a buyer is between $2k to $3k. Fees can be higher depending on the complexity of the transaction. There are also discount lawyers who charge less, however you should be careful that paying less for your lawyer does not sacrifice quality and possibly risk your deal.
Looking to buy or sell a home in New York? Learn how you can save on commission and closing costs at https://www.hauseit.com
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
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