Selling a home in New York City can come with a sizable price tag beyond the real estate commission. Before deciding what you’ll walk away with after a sale, it’s important to understand the closing costs that can reduce your net proceeds.

For many NYC sellers, total closing costs can land around 7%–10% of the sale price, although the actual amount varies based on the property, sale price, brokerage agreement, mortgage balance, and other factors.

NYC & New York State Transfer Taxes

Transfer taxes are among the largest seller expenses.

For most residential sales, the NYC Real Property Transfer Tax is:

• 1.00% for sales of $500,000 or less
• 1.425% for sales above $500,000 (NYC311)

New York State generally imposes an additional 0.40% transfer tax. Certain NYC residential transactions of $3 million or more are subject to an additional 0.25% state transfer tax. (NY State Taxation & Finance)

That means a seller of a $2 million NYC apartment, for example, could pay approximately $36,500 in combined NYC and basic NYS transfer taxes before considering other expenses.

Real Estate Brokerage Commission

Brokerage commission is negotiable and will depend on the agreement between the seller and brokerage. Because commission can represent one of the largest transaction expenses, sellers should account for it when calculating their expected net proceeds.

Attorney Fees

Real estate attorneys are standard in NYC transactions. Fees vary based on complexity, but sellers might budget approximately $2,000–$5,000+.

Building and Managing Agent Fees

Condo and co-op transactions may also involve fees for items such as managing agent processing, move-outs, lien searches, document preparation, or other building requirements.

Co-ops may also charge a flip tax, which can be structured as a percentage of the sale price, percentage of profit, flat amount, or even an amount based on shares. Who pays it depends on the building’s rules.

Mortgage Payoff and Other Expenses

If there is a mortgage on the property, the loan must generally be satisfied at closing. Sellers may also encounter mortgage-related fees, outstanding common charges or maintenance, and prorations for property taxes and other expenses.

The Bottom Line

The sale price isn’t the same as your net proceeds.

Before listing, ask your real estate agent and attorney to help estimate your anticipated closing costs. A preliminary seller net sheet can help you understand how different sale prices translate into actual proceeds.

Thinking about selling in NYC? I can prepare a pricing analysis and estimated seller net sheet to help you understand what your property could sell for, and what you could potentially walk away with after closing.

Disclaimer: “Figures are estimates for informational purposes only and are subject to change. Consult your attorney, lender, tax advisor, contractor, or other appropriate professional regarding your specific transaction.”