Congratulations! You’ve put your home on the market, found a buyer, and are now ready to close a deal. But before you break open the champagne, you’ll need to plan for some final closing costs. The good news is that there are fewer of them for sellers than for buyers, although you will still need to factor in agent commission (typically 5-6% of the sales price). To help get you through the home stretch, we’ve compiled a list of standard seller closing costs, so you can plan ahead:
|NYC real property tax||Typically 1-1.5% of purchase price|
|New York State tax||.40% of purchase price|
|Flip tax||1-3% of purchase price|
|Payoff/loan satisfaction||Varies, but expect $500+|
This looks like a lot, but don’t worry. While transfer taxes and attorney fees are a given, depending on where you live, move-out fees and flip taxes may be optional. The move-out fee should be mentioned in your original lease, and if it isn’t, you might not have to pay it. Similarly, a flip tax, which covers renovations, is generally paid only when you’re selling from within a co-op. Finally, loan satisfaction is necessary only if you have a mortgage provider.
What about real estate commission? While not technically a closing cost, the agent commission is still paid at this time to both the buyer’s agent as well as your own (seller’s) agent. You should expect to pay around 5-6% of the purchase price, with both agents receiving an equal share. Importantly, if the buyer doesn’t have an agent, your agent will be required to represent both parties in the transaction, and earn the entire sum.
For more information on selling your apartment in NYC or any real estate questions you may have, contact Batra Group at (646) 202-1877.