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A Breakdown of Buyer and Seller Closings Costs on NYC Apartments

 

Whether you’re selling your home or looking to buy property, closing costs are an important expense you need to budget for as they can take quite a bite out of your wallet. These costs cover bank, attorney, and building fees, as well as title insurance and mortgage taxes. While some closing costs are standard across the US, others are specific to New York City and to apartment types (ie., condos, co-ops, new construction, etc.). So break your calculator and factor in these required costs for closing your next real estate transaction in NYC:

What  you can expect to pay as a buyer in closings costs on NYC real estate properties.

Condo, co-ops and townhouses: For buyers, closing costs are usually between 2 and 3 percent of the total price of the property although these percentages can vary outside of these ranges. It’s always important to work with an experienced attorney to get your closing costs as low as possible. If the home is over $1 million, closing costs could jump between 3 and 4 percent. If the property is brand new, closing costs could rise as much as 5 percent. 

Bank fees: If you’re taking out a mortgage to help finance the purchase of your home, you may be expected to pay roughly $2,000 or $3,000 in bank fees. What’s included in your total bank fee is your bank’s attorney fees, the mortgage application and processing fee, bank loan origination fees, as well as fees for credit reports and verification of employment.

Attorney fees: While there are many low cost real estate attorneys out there, it’s advisable to work with a reputable attorney when going through with such a large purchase. Real estate attorneys who are willing to let you pay less than $2,500 may be ones to steer clear of. With so much at stake, it is in your best interest to ensure that you are legally well represented.

Mansion tax: This fee applies to all condos, co-ops and townhouses in NYC which have a total property price of $1 million or more. For condos, co-ops or townhouses which fall between $1 million to $1.999 million, the mansion tax will be about 1 percent of the total sale price. For homes with a sale price of $25 million or more, the mansion tax may increase up to 3.9 percent of the total sale price.

Title insurance: Title insurance protects you while buying a home in case there is an issue with your new home that you hadn’t uncovered before purchasing. If you’re taking a loan out to help finance the purchase of your home, title insurance will include both the lender’s policy and the owner’s policy. In NYC, co-op buyers don’t have to include title insurance in their closing cost fees because co-ops don’t possess physical titles.

NYC/NYS mortgage recording tax: This tax is based on the total amount of the mortgage for condos or townhouses. Rates for NYC mortgage tax will be about 2.05% of your loan amount for mortgages below $500,000, while mortgages over $500,000 with a residential home for 1-3 families or an individual condo home will have a rate of about 2.175%. All other mortgages exceeding $500,000 will have a mortgage tax rate of around 2.80%. 

Closing costs on new construction: As you can expect, closing costs for a newly constructed property are higher than for a second hand property. Closing costs for new construction will mainly consist of transfer taxes. Transfer taxes are usually paid for by sellers but newly constructed property is the exception. As a buyer of a new construction you’ll also be expected to pay the seller’s attorney fee (although you may be able to negotiate this beforehand), as well as the NYC state and NYC Real Property Transfer Tax filing fee. 

What you can expect as a seller in closing costs on common dwellings in NYC.

Sellers typically spend more in closing costs than buyers. A standard percentage you can expect to pay is around 8 to 10 percent of the total sale price, although this can vary depending on your specific situation. Real estate broker Jay Batra at Batra Group Real Estate recommends consulting with an experienced real estate attorney to help guide you through selling your home, as there are many factors that may come into play. Seller closing costs include:

Brokerage fees: Fees you pay to your broker are typically the lion’s share of your closing costs, at around 6 percent. Broker fees can really add up depending on the sale price of the property.

Transfer taxes: If your home’s total sale price is over $500,000, you can expect to pay state and city transfer taxes at a rate of 1.825 percent. If your home’s total sale price is under the $500,000 you can expect to pay a combined state and city transfer tax of 1.4 percent. Importantly, if your apartment or home’s total sale price is over $3 million, your city and state transfer taxes will increase by 0.25 percent.

Transfer fees (also called flip taxes): Specific to NYC, flip taxes apply to co-op apartments as well as condos, and are typically paid by the seller. Flip taxes can usually be negotiated depending on the market. You can expect to pay around 1 to 2 percent in flip taxes but can end up paying upwards of  3 to 5 percent in the total sale price when selling your co-op or condo in NYC.

Building fees: Fees you can expect to pay to the building you’ll be moving from include a move-out fee as well as a move-in fee for the next resident (which you will be refunded for later). Building fees are typically around $1,000 for the move-out free and another $1,000 for the refundable move-in fee.

Attorney fees: You can expect additional real estate attorney fees to be around $2,500 to $3,000 for a typical closing cost deal.

As mentioned, some closing costs can be negotiated with the help of a reputable real estate attorney. A generally wise decision in buying or selling your home in NYC is to set aside an additional $2,000 for extra closing costs as “miscellaneous fees” which may come up unexpectedly. 

Closing costs are a necessary final step in the real estate sales process. While costs can vary, it is important to budget for these costs as best as you can before making or accepting an offer, so that you can ensure you are covered financially. 

For more information on buying and selling real estate in New York City, contact Batra Group at (646) 202-1877.

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The Best Things to Do in Long Island City

 

With the warm weather fully upon us and the phased reopening from coronavirus in full swing, it’s a great time to get outdoors (with your mask) and blow off some steam. For visitors and native New Yorkers alike, a day trip to some awesome parks, museums, markets and other hidden gems around the city may feel long overdue.

Among the top excursions on your list should be Long Island City. Known as Queen’s “mini city,” Long Island City is full of art, culture, food and fun. This booming neighborhood on the western edge of Queens with panoramic views of the Manhattan skyline has something for everyone. Following are some of the area’s top highlights: 

Gantry Plaza State Park
4-09 47th Road

Located on a former dockyard and manufacturing district in the Hunters Point section of Long Island City with a stunning view of the Manhattan skyline, Gantry Plaza State Park boasts 12-acres of beautiful park grounds, including well-preserved remnants of the area’s past. The most notable of these are the huge iconic Pepsi Cola sign and the gantry cranes for which the park was named. The park sits adjacent to Hunters Point South Park, which adds another 5.5 acres of park grounds with pedestrian and bike paths, a playground, picnic terraces, wooden seating areas, and a 30-foot-high cantilevered platform to this must-see destination.

LIC Flea & Food
5-25 46th Avenue

Just one block from the famed Pepsi-Cola sign is Queens’ largest outdoor market. LIC Flea & Food is a premier weekend destination with an incredible selection of internationally inspired food and drink, local craft beer, antiques, art, furniture, fashion, jewelry, arts and crafts, and much more. LIC Flea and Food is a great way to spend quality time outdoors with friends and family while supporting great local vendors!

Noguchi Museum
9-01 33rd Road (at Vernon Boulevard)

This inspired museum houses thirteen galleries and an outdoor sculpture garden featuring a wide collection of artwork by Japanese-American sculptor Isamu Noguchi (1904-1988). The museum itself is Noguchi’s actual workspace in then-industrial Long Island City, a wonderful treat that allows you to feel how he integrated his work with his natural surroundings. Special exhibits explain aspects of his life, work against the World War II detention of Japanese-Americans, and his development of specific artistic projects, such as paper lamps. 

Socrates Sculpture Park
32-01 Vernon Blvd

Just one block away from Noguchi is another sculpture hotspot. Built on a former landfill, Socrates Sculpture Park is an outdoor museum and public park where artists can create and exhibit sculptures and multimedia installations. Socrates Sculpture Park is home to over 1,000 artists’ pieces stretched over 5 acres of land.  

MoMA PS1
2225 Jackson Avenue

MoMA PS1 is one of the oldest and largest nonprofit contemporary art institutions in the United States. An affiliate of The Museum of Modern Art, MoMA PS1 is dedicated to exhibiting the most provocative and challenging art from around the world. The museum is literally housed in an old school, and when you walk the halls you cannot help but be brought back to your own grade school memories of buildings just like this one. The art here is very modern/contemporary and often quite provocative.  

Hunters Point Historic District
45th Avenue between 21st and 23rd Street

The Landmarks Preservation Commission’s (LPC) 1968 designation report describes the Hunters Point Historic District as a “notable residential area … which retains, on both sides of the street, a feeling of unity and repose, little changed since it was first built” that “serves as a microcosm of the domestic architecture of the last quarter of the Nineteenth Century.”

Queensboro Bridge
Ed Koch Queensboro Bridge
There are 16 bridges that connect the island of Manhattan to the outer boroughs, and at least a dozen of them offer pedestrian lanes. Among them is the world famous Queensboro Bridge (also known as the 59th Street Bridge and now officially Ed Koch Bridge). A walk across this iconic, century old structure will give you a great view of Long Island City, the East River, and the Upper East Side of Manhattan.

With so much to see and do, Long Island City is quickly becoming one of New York’s most popular destinations. 

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New York City’s Most Desired Apartment Amenities Following the Coronavirus Pandemic

 

Since the coronavirus shutdown in mid March, NYC residents are spending much more time at home. Apartment buildings, along with every other business and facility in the country, have put restrictions into place to limit the amount of people gathered in a public space. For renters, these limitations mean reduced access to buildings’ laundry rooms, fitness centers, pools and other shared spaces.

Although renters may be frustrated by not being able to use many of their amenities, most understand the importance of working together to stop the spread of the virus. Interestingly, the prolonged changes have helped shift perceptions of what the most important amenities actually are. 

Before the coronavirus, some of the most desirable apartment amenities included the ability to have a pet, a doorman/concierge, or convenient parking spaces. According to search data since the pandemic, renters are now prioritizing the following amenities:

In-Unit Washer & Dryer
Once considered a luxury, many renters now consider the washer/dryer a must to protect their health. Having a washer/dryer at home ensures they won’t have to share these machines with anyone outside of the family.

Private Outdoor Space
Private outdoor space can include a private balcony or patio space where tenants can also have access to greenery and fresh air. With restrictions on public outdoor spaces and the lingering fear tenants have to gather in public, renters right now are looking for private outdoor space within their apartments.

Home Office / Business Centers
With the increasing number of people working from home, office space within an apartment or building is also a well sought after amenity. Since most people won’t be attending their usual office space with their fellow coworkers, access to printers, computers and reliable wifi connection are needed. While some seek extra space within their apartment to set up an office, most renters are asking about business centers within an apartment building. While it may cost extra in some buildings, it can be a worthy investment based on your needs while working from home.

Gym / Fitness Center
With many gyms remaining closed across the country and gym goers still unsure of the safety of public gyms, apartment gyms have become even more desirable. However renters must still contend with certain restrictions. Smaller-sized apartment buildings with gyms may be the better bet right now to ensure less contact with neighbors in shared space. 

While the shift in amenity queries clearly began as a reaction to the pandemic, it is likely to have a lasting effect in the marketplace. A record number of remote workers plan to stay remote even after the pandemic fully passes, keeping the home office top of mind. It will be interesting to see how long the other top queries fare once the pandemic is well behind us.

For more information renting apartments in New York City, contact Batra Group at (646) 202-1877.

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Importance of Availing Corporate Relocation Services From a Trusted Agency

If you are among those who want to shift to another city and live then the first thing you need to do is find the right real estate agency. As a matter of fact, there are several brokers present who offer services like helping you in planning and developing the relocation program. By choosing the right professional you can get the ideal residence as per your choice and you do not have to worry about other things. So, it is only advisable to do some research about it with the help of the internet or seek recommendations from friends or family.

Here, we have a piece of good news that you can find numerous boutique offering facilities for Corporate Relocation in NYC or nearby areas. When relying on them, you will easily get the ideal location as well as an apartment as they are responsive and work professionally. Besides, they ensure that you get the cost-effective option in lesser time and also they assist in moving your household goods. Having a reputed broker by your side means getting high value and quality abode in the perfect location. Further, if you are also interested in such specialized real estate services then approaching a noted name is a wise decision.

Apparently, if you want to avail of excellent advantages, you need to choose a reliable option and for this, you can do detailed research. Presently, Batra Group is also counted among genuine names in the market that you can trust which provides Corporate Relocation in NYC. Believe it or not, here, you will get the impeccable services without spending a small fortune. They have world-class capabilities that can assist you to streamline the sales procedure. It’s no less than an icing on the cake for you. It simply means now no one can stop you from selling out your living place at the best price!