A guide on closing costs for NYC buyers and sellers.

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Whether you're buying or selling real estate in NYC, you can expect to pay a hefty amount of taxes and fees at the closing table—some that you’d expect and others that are unique to New York. For sellers, closing costs take a bite out of the proceeds. For buyers, they may have a real impact on your buying power and may affect your decision to buy one apartment over another, so it's crucial to understand the big picture before your search.

Read on for an overview of what you’ll pay in closing costs—the actual sum, of course, will vary widely—and some ways that you can save. 

Buyers: Plan to pay 2 to 4 percent of the purchase price of a co-op, condo, or townhouse

A good rule of thumb for buyers is to set aside roughly 2 to 3 percent of the purchase price. Bump that to 3 to 4 percent if the apartment is over $1 million or if you're buying a condo. If you're buying a brand new condo, prepare to pay up to 5 percent of the purchase price in closing costs.

Bank fees: If you're taking out a mortgage, expect to pay $2,000 to $3,000 in bank fees, including your bank attorney’s fees and an appraisal. 

Attorneys fees: These typically run about $2,500 to $3,000 for a standard deal and can increase for a more complex transaction, such as purchases involving two units that you plan to combine. This is not an area to skimp on, so steer clear of attorneys who say they can do this for $1,500 or who don't specialize in New York City real estate closings.

Mansion tax:  The mansion tax kicks in at 1 percent on co-ops, condos and townhouses sales of $1 million to $1.999 million—and rises incrementally to 3.9 percent on sales prices of $25 million or above. This is typically paid by the buyer, not the seller, and applies even if your so-called mansion is a 600-square-foot one bedroom. 

Building fees: Most condo and co-op buildings charge move-in and move-out fees, which can range from a few hundred to a couple of thousand dollars each, a managing agent and co-op attorney fee of around $1,500, and board application fees of $500 to $700.

When you apply, the board should send the prospective purchaser or the broker a list of what is needed, as well as fees. 

Title Insurance (condos & townhouses only):  Title insurance for a $1 million property can be as much as $4,500. (For more information read: ”What is title insurance, and why do I need it?” ) Co-op buyers do not have to buy title insurance, or pay a mortgage recording tax, below, because rather than a transfer of real property, co-op purchases are technically the transfer of shares in a cooperative corporation.

Mortgage recording tax (condos & townhouses only): Condo and townhouse buyers who take out a mortgage must pay a state and city mortgage tax of 1.925 percent on loans over $500,000 or 1.8 percent for loans under $500,000. On a $1 million condo with an $800,000 mortgage, that's $15,400.

Transfer taxes (sponsor co-op and new condo buyers only): If you buy a brand new condo or  a co-op directly from the sponsor, you may also wind up paying a New York City transfer tax of 1 percent of the purchase price on purchases over $500,000 (or 1.425 percent on purchases of $500,000 or less), plus a .4 percent transfer tax to New York State. That's $14,000 on a $1 million condo. On a new condo purchase, you might also be expected to pay for part of the super's apartment (which can amount to thousands of dollars) as well as part of the building's insurance costs for the first year.

That said, an oversupply of apartments in high-end buildings in NYC means many developers ("sponsors") are willing to pay your transfer tax, attorneys fees and other miscellaneous fees. You’re even more likely to get a break where the developer has just a few units left to sell and they are willing to make a deal. For more details, check out "How New Yorkers can take advantage of the city's oversupply of luxury condos.”

Sellers: Budget for closing costs of 8 to 10 percent of your sales price

Sellers can expect to pay a lot more in closing costs than buyers--in large part because of their responsibility for paying the broker fee.

Broker fees: Seller are expected to cover the broker fee, which is traditionally 6 percent, split equally between the listing and buyer’s brokers. On a $1 million apartment, a 6 percent broker fee comes to $60,000.

Transfer taxes: Sellers pay a state and city combined transfer tax of 1.825 percent if the sale price is over $500,000 or 1.4 percent for deals under $500,000.  (That works out to $18,250 on a $1 million sale, and $9,125 on a $500,000 sale.) If your apartment or townhouse sells for $3 million or more, the tax increases by 0.25 percent. 

Flip taxes: Some co-op and condo buildings have flip taxes (also known as transfer fees) ranging anywhere from 1 to 2 percent of the purchase price up to 3 to 5 percent. Some buildings charge 10 percent of the seller's profit. Flip taxes are not really taxes, but a fee paid to support building reserves and capital improvements.  

In some buildings, the buyer pays, and in others the seller. In the current market, more buyers are having success getting the seller to pay the flip tax even if it's technically the buyer's responsiblity. 

Attorney fees: Expect to pay $2,500 - $3,000 in attorneys fees on a standard transaction.

Building fees: Most condo and co-op buildings charge move-in and move-out fees, which can range from a few hundred to a couple of thousand dollars each, and a managing agent and co-op attorney fee of around $1,500.