Closing Costs in New York City: A Guide for Sellers
Selling your home in New York City? As a seller, you’re likely curious about the closing costs. Closing costs are the various fees and expenses that sellers pay during the final stages of a property sale.
In New York City, closing costs can vary significantly depending on the specifics of your transaction, from the location of your property to the type of home you’re selling. Our concise guide will walk you through the various closing costs sellers can anticipate in New York City, helping you better understand what you’ll need to budget for when selling your property.
Disclaimer: This article provides estimates of a seller’s closing costs that are meant for educational and research purposes only; our calculations are not a guarantee.
What are closing costs?
Closing costs represent the various fees you’ll encounter when completing the sale or purchase of your property. These expenses range from property taxes to insurance, many typical for most homeowners. Some costs, such as transfer taxes, are location-dependent and will vary based on where your home is situated at the time of the sale.
Mortgage/Loan payoff amount
Before selling your home, you’ll need to address the “loan payoff amount” on your mortgage. This is the remaining balance that must be settled before the sale can be completed. It includes the outstanding principal balance as well as any interest that has accrued over the life of the loan.
The loan payoff amount may include other fees in addition to the principal and interest. Paying this amount in full is necessary to finalize the terms of your mortgage and proceed with the sale of your home.
Property taxes
According to WalletHub, New York City ranks 46th in the country in terms of property taxes, placing it below cities in states like Texas and Nebraska.
Real estate in New York is taxed at a rate of 1.64%, with a median home value of $448,000. To get a better idea of what you might owe, consult a property tax calculator.
