Welcome to the First Time Home Buyer Series where we help newbie NYC home buyers navigate through the most thrilling (and sometimes most headache-ridden) process out there.

When I purchased my first apartment in NYC (an adorable 1 bedroom on the Upper West), it was an exciting, but very stressful time for me. Mainly because I was blind-sided by how much I needed to have to close. I remember scrambling a couple days before the closing date trying to come up with all the cash needed and just barely making it with enough to close.

Many first time home buyers only think about the cost of downpayment and getting a loan. You also have to be aware of all the extra expenses involved in a purchase, such as attorney fees and building fees.

Nothing is ever easy (or cheap) in NYC and buying property is no exception. Where the rest of the country sees average closing costs of approximately $3,700*, here in NYC that number jumps up to around 2-5% of your purchase price. To put that into perspective, on a$500,000 purchase, your closing costs could range from $10,000 to $25,000!

So where are all these expenses coming from? Below is a general breakdown of the costs you can expect to incur as a buyer in a condo or a coop (brace yourself):

Closing Costs for Buyers – Condos

Title Insurance – Owner’s Policy -Approximately $4 per $1,000 ofclosing price plus $1,000

 

Title Insurance – Mortgage -Variable depending on loan amount 
Real Estate Tax Adjustment -Reimbursement to seller forpre-paid Real Estate Taxes

 

Common Charge Adjustment -Reimbursement to seller forpre-paid Common Charges

 

NYS Mortgage Recording Tax -1.8% if mortgage less than $500k,1.925% if mortgage is greater than $500k

 

Administrative Lending Fees -Various – depending on lender 
Bank Attorney Fee -$700-$950 
Move-In Deposit (refundable) -$500-$1,000 
Move-In Fee (non-refundable) -$250-$1,000 
Purchase Application Fee -$500-$1,000 
Mansion Tax -1% of purchase price if $1mm or more 
Purchaser’s Attorney Fee -Varies, typically $1,000-$3,000 

Closing Costs for Buyers – Coops

Coop Application Fee -$500-$1,000 
Judgement & Lien Search -$250-$350 
Recognition Agreement Fee -$150-$250 
Maintenance Adjustment -Reimbursement to seller for pre-paid Maintenance 
Title Closer Gratuity -$250 
Administrative Lending Fees -Various – depending on lender 
UCC-1 Filing Fee -$75-$125 
Bank Attorney Fee -$700-$950 
Move-In Deposit (refundable) -$500-$1,000 
Move-In Fee (non-refundable) -$250-$1,000 
Purchase Application Fee -$500-$1000 
Mansion Tax -1% of purchase price if $1mm or more 
Purchaser’s Attorney Fee -Varies, typically $1,000-$3,000

Are there ways to lower or even avoid any of these fees?

Most of the time it is difficult unless you plan on doing an all-cash purchase. Then all of the fees associated with lending are made obsolete. However, if you work with Suitey, we offer all buyers a 1% rebate on the purchase price, which is a huge help in offsetting some of these closing costs.

I hope this helps you come up with a better estimate of what your actual closing costs could look like, and save you the stress I had on my first purchase.

View Printable Closing Cost Guide

Good luck!