Breaking Down NYC Seller Closing Costs: A Practical Guide for Sellers
A successful NYC sale brings everyone to the closing table — attorneys, agents, and lenders — to complete the final paperwork and transfer ownership after the seller’s closing costs have already been reviewed and approved.
Selling a home in New York City comes with meaningful transaction costs that every seller should understand early. While exact figures vary by property type, price point, and building requirements, most sellers can expect total closing costs in the range of 8%–10% of the final sale price. This range reflects common industry benchmarks and the typical expenses associated with selling in NYC.
These costs include broker commissions, transfer taxes, attorney representation, building fees, and standard prorations. Having a clear picture of each component helps set realistic expectations and supports more accurate financial planning from the start. Below is an agent-guided overview of the primary costs NYC sellers typically encounter, with a quick at-a-glance summary available at the end of the guide.
1. Commission
Commission is typically the largest component of a seller’s closing costs. In New York City, the industry norm remains 5%–6% of the final sale price, with 6% still the standard across most property types (especially in Manhattan). This fee is paid entirely by the seller and compensates both the listing agent and, when applicable, the buyer’s agent through an agreed-upon split outlined in the listing agreement.
Recent updates to REBNY’s Universal Co-Brokerage Agreement and the national settlement involving NAR have clarified how commissions must be structured. Offers of compensation to a buyer’s agent must now originate directly from the seller, not the listing agent, even when communicated through the listing agreement. Sellers are not required to offer buyer-agent compensation, though doing so often supports broader exposure and buyer participation.
Buyers represented by REBNY or NAR-affiliated agents must also sign a written buyer representation agreement before touring homes (effective 2025 for REBNY members). These agreements specify how the buyer’s agent is compensated. In practice, compensation levels that fall below what buyers see offered on comparable listings can influence their willingness to tour, as buyers are now more aware of these costs and factor them into their decision-making early in the process.
The key advantage for sellers is flexibility. Your agent will guide you through current norms, evaluate whether offering buyer-agent compensation strengthens your strategy, and position your listing competitively within NYC’s evolving brokerage landscape.
2. Seller Concessions
Seller concessions are financial incentives a seller may offer to make a deal more appealing, particularly in competitive or buyer-leaning markets. While not always necessary, concessions can be an effective tool when addressing buyer concerns or strengthening an offer. Common examples include:
Contributing to the buyer’s closing costs
Providing a repair or condition-related credit
Offsetting temporary carrying costs (common charges or maintenance)
Concessions will reduce the seller’s net proceeds, but when used strategically, they can help secure a motivated buyer or keep negotiations moving forward. Your agent will advise on whether a concession is appropriate for your situation and how to structure it effectively.
3. Attorney Fees
Attorney representation is required in all New York City real estate transactions, and sellers should plan for legal fees typically ranging from $2,500 to $3,500+, depending on the complexity of the deal. While this is a standard closing cost, an experienced attorney plays a critical role in protecting the seller’s interests and ensuring the transaction proceeds smoothly.
Your attorney prepares and negotiates the contract, conducts building-level due diligence for co-ops and condos (including reviewing the offering plan, amendments, financials, and board minutes), coordinates title and payoff information, and manages the closing process from start to finish. Their oversight helps prevent delays, addresses issues before they escalate, and provides the legal clarity and reassurance sellers need throughout the transaction.
4. New York State and NYC Transfer Taxes
Transfer taxes are a standard part of every NYC home sale and represent one of the largest closing costs for sellers. These taxes are imposed by both New York City and New York State whenever a property changes ownership, and they apply to all property types alike. Because the tax is calculated as a percentage of the sale price, it can meaningfully affect your net proceeds.
NYC Transfer Tax (RPTT): 1% for sales ≤ $500,000; and 1.425% for sales > $500,000
New York State Transfer Tax: 0.4% for sales < $3 million; and 0.65% for sales ≥ $3 million
Examples:
On a $1,000,000 sale, the combined NYC + NYS transfer taxes total = $18,250.
On a $750,00 sale, the combined NYC + NYS transfer taxes total = $13,687.50
On a $500,000 sale, the combined NYC + NYS transfer taxes total = $7,000
Understanding these rates early helps sellers avoid surprises and plan around one of the most predictable components of the transaction. Your agent will calculate the exact transfer-tax amount for your property when preparing your estimated net.
5. Flip Tax (Co-ops) Fees
Many NYC co-ops impose a flip tax—though the term is somewhat misleading, as it’s not a government tax but a building-imposed fee collected when a shareholder sells their apartment. Flip taxes play an important role in supporting a co-op’s financial health, helping fund reserves, capital improvements, and long-term maintenance. For sellers, this fee can be one of the more substantial building-related costs at closing.
Flip taxes vary widely by building and may be structured in several ways, including:
1%–3% of the sale price (with ~2% being common)
A flat fee
A per-share fee
A tiered fee based on length of ownership
Each co-op sets its own formula, outlined in the building’s governing documents. Reviewing those details early—alongside your agent and attorney—helps ensure the flip tax is accurately factored into your estimated net proceeds.
6. Property Taxes
At closing, property taxes are prorated based on the ownership period:
Sellers pay taxes up to the closing date
Buyers assume taxes after the closing date
This adjustment appears on the closing statement and ensures both parties pay their proportional share.
7. Monthly Charges & Assessments
At closing, building charges are prorated so that sellers pay only for their share of expenses up to the date ownership transfers. For condo sellers, this typically applies to common charges, while co-op sellers see the same proration applied to maintenance fees. These adjustments are standard and appear on the closing statement.
Special assessments—whether in a condo or co-op—may need to be addressed as well. Some buildings require that assessments be paid in full before closing, while others prorate them similarly to monthly charges. Policies vary by building, so it’s important to review these details early.
Your agent and attorney will confirm the building’s requirements, review financial documents, and ensure all prorations and outstanding charges are accounted for in your closing plan.
8. Building Fees and Other Costs
Beyond commissions, taxes, and attorney fees, sellers in NYC may encounter a range of smaller—but still meaningful—building fees and miscellaneous expenses. Many co-op and condo buildings impose move-out fees or administrative charges to cover the costs of building staff time, elevator reservations, and logistics. These fees vary widely: some buildings charge a modest administrative fee, while others may require a non-refundable move-out fee of several hundred dollars or more. Policies differ by building, so reviewing the fee schedule early is essential.
Sellers should also anticipate routine, less predictable transaction costs. These can include document preparation charges, stock transfer fees for co-ops, or minor compliance-related expenses. While individually small, they can add up over the course of a transaction, making it helpful to set aside a modest contingency budget.
Finally, moving costs themselves—although outside the formal category of closing costs—are commonly overlooked when sellers plan their final numbers. Pricing varies significantly based on the size of the move, building requirements, and the type of service selected.
9. Breaking It All Down: Typical NYC Seller Closing Costs (At a Glance)
Commission: Typically 5%–6% of the final sale price (largest seller cost)
Seller Concessions (if used): Credits toward buyer closing costs, repairs, or temporary carrying costs (variable but common).
Attorney Fees: Approximately $2,500–$3,500+
Transfer Taxes (NYC + NYS): Roughly 1.825%–2.075% of the sale price, depending on price thresholds
Flip Tax (Co-ops Only): Building-specific; often 1%–3% of the sale price or structured by shares / ownership length
Prorated Property Taxes: Seller pays taxes up to the closing date
Common Charges / Maintenance (and Assessments): Prorated through closing; assessments may need to be paid in full depending on building rules
Building Fees, Miscellaneous Costs, and Move-Related Expenses: Move-out fees, application fees, document prep, stock transfer fees (co-ops), moving expenses — variable but common.
10. The Role of Your Real Estate Agent
Navigating the costs of selling in NYC requires expertise and strategic planning. A knowledgeable real estate agent doesn’t just help list your property—they guide you through each financial component, explain what to expect at closing, and help you understand your estimated net proceeds with clarity.
From pricing your property competitively to crafting an effective marketing strategy and managing negotiations, your agent oversees the full process. Their experience ensures that every cost is accounted for and that your transaction moves forward smoothly, protecting your financial interests from start to finish.
Related Resources and Insights
If you’re considering selling your NYC property or have questions about any of these costs, I’m here to guide you through the process. Contact me today, let’s start the conversation.