closing costs and taxes
Started by walshcoop
over 15 years ago
Posts: 55
Member since: Apr 2010
Discussion about
does anybody comment on the closing costs and taxes of a conod in NYC and is it true if the seller pay any portion of the closing cost or any taxes
I think there maybe a NY mortgage tax of 1.75%, but not sure if that is still the case.
but that is for the buyer, not seller
there are 2 sides to the closing costs, one from the seller and another from the buyer. it all depends on the price and what deal is made with the seller. in new construction, the sponsor always tries to have the buyer pay most of their closing costs. if you can provide more info, it will help people answer your question.
is this a new construction? if yes, were there discussions of who will pay the seller's side of closing costs.
what is the agreed sales price?
This has a rough estimate of the closing costs. http://www.corcoran.com/guides/index.aspx?page=ClosingCosts
In general, if you are buying a coop, figure about 2% of the purchase price; if you are buying a condo, it is roughly 4% of the purchase price, unless it is a new condo from a sponsor and then, as ab_11218 indicates, the sponsor will try to get you to pay the transfer taxes (and other fees). Two years ago - the sponsor always won on that point; these days, you have a good chance of getting the sponsor to pay the transfer taxes.
Also, if your purchase price is over $1MM, there is a 1% "mansion tax".
this is a good starting point: http://www.corcoran.com/guides/index.aspx?page=ClosingCosts
Yes, there's mortgage tax (1.8% up to 500k, 1.925% above), and on new construction bought from the sponsor you'll get stuck with the transfer tax unless you can negotiate your way out (1.4% for purchases below 500k and 1.825% for those above). You'll also generally have to pay their attorney fee, typically $1,500 (on top of your attorney's fee and the bank's attorney's fee). Basically, unless you can negotiate concessions, expect to have cash closing costs of around 6%. It's painful.
Thanks for all the responses.It seems there are 2 types of property transfer taxes in NYC, one is NY city , other NY state