Closing Costs in New York City: A Guide for Sellers

Reconveyance fee

After you’ve completed the sale of your home and your mortgage has been fully paid off, you’ll typically be responsible for a reconveyance fee. This fee covers the issuance of a reconveyance deed, which officially releases you from your mortgage obligation. Your lender will record this deed, and the associated fee will vary depending on the city, state, or county where the property is located.

Realty transfer tax

You also might be responsible for what’s known as a realty transfer tax. These are fees assessed by local governments whenever a property changes ownership.

These taxes are sometimes called a “Deed Excise tax” or a “Documentary Stamp tax.” Who ultimately pays these taxes depends on the state, city, or county where the sale occurs.

In New York, for example, the seller is typically responsible for covering transfer taxes as part of the closing costs.

Real estate agent commission

Unless you’re selling your home for sale-by-owner, you’ll likely have used a local agent. Research indicates that an agent’s expertise can significantly impact your sale: In 2023, homes sold with an agent’s assistance had a median price of $405,000, compared to $310,000 for FSBO sellers.

Working with a real estate agent means paying a commission. This fee covers various services, such as accurately pricing your home, marketing it effectively, and negotiating with buyers to ensure you receive the best possible price and terms.

It should be noted, however, that on March 15, 2024, the National Association of Realtors (NAR) announced a landmark lawsuit settlement that will change the way real estate agent commissions are handled in the future. These changes will “decouple” seller and buyer agent compensation. Industry experts predict that this decoupling will likely lower agent fees and give buyers the ability to negotiate commission amounts directly. Learn more.

HomeLight’s transaction data reveals that the national average real estate agent commission is 5.8% of the property sales price. This commission typically includes fees for both the listing and buyer’s agents, with sellers customarily covering the cost.

Use HomeLight’s commission calculator by entering your city for commission data tailored to your specific area.

Attorney Fees

Some states require an attorney to be present when closing the sale of a property.

New York requires a licensed attorney to conduct real estate closings.

Homeowners Association/Condo Fees

One of the biggest sticking points for sellers is the fees levied by their homeowners’ association (HOA) or condominium association fees.

Like other fees we’ve discussed, these will vary, not just because of the different rules and regulations of your local HOA but also because HOA regulations vary greatly depending on the state. These fees (or dues) are usually prorated at the time of the sale.

The average monthly HOA fee in New York is $387.

Seller’s concessions

In New York City, sellers may owe money at closing due to financing concessions negotiated during the sale. These concessions often cover expenses such as closing costs, repairs, or home warranties.

One common concession is repair credits. This option is typically offered when a buyer includes a home inspection contingency in their offer. If the inspection reveals necessary repairs and the seller opts not to address them, they can provide repair credits—cash that the buyer can use to cover the cost of repairs after closing. It’s worth noting that seller concessions like these are less frequent in competitive markets, as contingencies may deter potential buyers.

Miscellaneous closing costs/fees

These are some of the most common closing costs you’ll likely encounter as a New York City seller. However, keep in mind that many of these expenses can be negotiable. Your buyer may be open to discussing who covers certain costs, and a real estate agent or attorney can help you secure a better deal.

If you want to minimize closing costs while ensuring a smooth sale, HomeLight can connect you with a top local agent. Alternatively, if you’d rather skip the hassle of traditional selling methods, consider HomeLight’s Simple Sale program.

With Simple Sale, you can sell your home in just three steps—enter some basic details about your property, consult with one of our Home Consultants, and potentially sell your home in as little as 10 days.

Header Image Source: (Nicholas Ceglia / Unsplash)