Who Covers Closing Costs When Selling a Home in New York?

When selling a home in New York, understanding closing costs is crucial for planning your finances and ensuring a smooth transaction. Closing costs are the fees and expenses associated with finalizing a real estate deal, and they can add up quickly. But who’s responsible for paying them—the buyer or the seller? In this blog, we’ll break down what closing costs include, who typically pays them in New York, and how you can minimize your expenses.

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What Are Closing Costs?

Closing costs refer to the fees and expenses incurred during the sale of a home. They include a variety of charges, such as taxes, legal fees, and administrative costs, all of which must be paid at the time of closing. In New York, these costs can range from 2% to 8% of the home’s sale price, depending on the property’s location and value.

Common Closing Costs Include:

  • Transfer Taxes: Fees paid to the state or local government for transferring the property title.
  • Attorney Fees: Legal costs for preparing and reviewing contracts.
  • Title Insurance: Protects the buyer and lender against title disputes.
  • Recording Fees: Charges for filing the sale with the county clerk.
  • Broker Commissions: Typically paid by the seller to the real estate agent.

Who Pays Closing Costs in New York?

In New York, the responsibility for closing costs is typically divided between the buyer and the seller. However, the exact distribution can vary based on the terms negotiated in the sale contract.

Costs Typically Paid by the Seller:

  1. Transfer Taxes:
    In New York State, the seller pays a transfer tax of $4 per $1,000 of the sale price. In New York City, there’s an additional transfer tax that ranges from 1% to 2.625%, depending on the property’s value.
  2. Real Estate Agent Commissions:
    Sellers are generally responsible for paying commissions, which average 5% to 6% of the sale price.
  3. Attorney Fees:
    Sellers must hire an attorney to handle the closing process, which usually costs between $1,000 and $3,000.

Costs Typically Paid by the Buyer:

  1. Title Insurance:
    Protects the buyer and lender against potential title issues.
  2. Mortgage-Related Fees:
    Includes loan origination fees, appraisal costs, and credit report fees.
  3. Prepaid Property Taxes and Insurance:
    Buyers may need to prepay a portion of property taxes and homeowners insurance.

Can Sellers Negotiate Closing Costs?

Yes, closing costs are often negotiable. Sellers can offer to cover certain costs to attract buyers, especially in competitive markets. Conversely, sellers can also negotiate with buyers to take on more of the closing cost burden in a seller’s market.

Tips for Minimizing Seller Closing Costs:

  • Sell Your Home As Is: Selling your home to a cash buyer eliminates many of the traditional closing costs, such as repairs and staging expenses.
  • Work With an Experienced Agent: A skilled agent or buyer may help you negotiate lower costs.
  • Shop Around for Services: Compare quotes for legal and title services to find the best rates.

Why Selling As Is Can Save You Money

One of the easiest ways to reduce your closing costs is to sell your home as is to a cash buyer. Cash buyers eliminate the need for repairs, inspections, and many of the fees associated with traditional home sales. Companies like We Buy Any House As Is take care of the details, allowing you to close quickly and keep more money in your pocket.


Final Thoughts

Closing costs are a necessary part of selling a home in New York, but understanding who pays what can help you prepare and negotiate effectively. If you’re looking to save time and money, selling your home as is can be a hassle-free alternative to the traditional sales process.

Ready to avoid the stress of closing costs and sell your home fast? Contact We Buy Any House As Is for a no-obligation cash offer today!

Read Also: 

Legal Aspects Selling for Cash

Facing Foreclosure in New York?

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