Seller Closing Costs Calculator

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Broker Commission

Commission are, of course, always negotiable. Sellers negotiate with their broker what fee they are willing to pay for their broker's services and what fee they are willing to pay a cooperating buyer broker for finding someone who wants to buy their home.

The traditional real estate brokerage commission is 6% of the sale price. We will use this percentage for the purposes of estimating your closing costs in the calculator above. The commission is baked into the sale price and paid typically by the seller at The Closing — typically split 50/50.

Approximately 90% of buyers in New York City work with buyer agents. So the vast majority of all sale transactions have 2 agents involved:

1. Seller’s Agent

2. Buyer’s Agent

Listings offering lower commissions typically transact for approximately 15 - 20% less than market rate and sit on the market longer. Just like sellers in a transaction, agents need to get excited about making money — real estate agents earn 100% of their living on commission. So commissions below 6% and 5% impact how much demand a listing sees from represented buyers.

NY City Transfer Tax

The NYC Transfer Tax is a seller closing cost of 1% for sales below $500k and 1.425% for sales of $500k or more. Higher rates apply for commercial transactions and multifamily properties with 4 or more units. In addition to the NYC Transfer Tax, sellers in NYC must also pay New York State Transfer Taxes. The combined NYC and NYS Transfer Taxes are the second largest closing cost for sellers aside from broker commissions.

NY State Transfer Tax

The New York State Transfer Tax is 0.4% for sales below $3 million and 0.65% for sales of $3 million or more. The higher rate of 0.65% kicks-in at a lower threshold of $2 million for commercial transactions and residential properties with 4 or more units. Prior to the New York Tax Law amendments in 2019, the NYS Transfer Tax was previously a fixed 0.4% regardless of the sale price. The New York State Transfer Tax is authorized by New York Consolidated Laws, Tax Law – TAX § 1402.

Purchase CEMA

A Purchase CEMA is also known as a Purchase Consolidation Extension Modification Agreement, i.e, CEMA. Sellers can work with Buyers taking out a mortgage. Together they can pursue huge savings on Closing Costs.

The Purchase CEMA is a strategy for reducing your closing costs when buying or selling a condo or house in New York City. The Purchase CEMA itself is the act of assigning a seller’s existing mortgage to the buyer. The CEMA reduces the amount of new loan money which must be originated, and this reduces two closing costs: the buyer’s mortgage recording tax bill and the seller’s New York State transfer tax bill.

1. Purchase CEMA
   
   A Purchase CEMA is a strategy for reducing your closing costs when buying or selling a condo or house in New York City. A Purchase CEMA is also known as a Purchase Consolidation Extension Modification Agreement. The Purchase CEMA itself is the act of assigning a seller’s existing mortgage to the buyer. The CEMA reduces the amount of new loan money which must be originated, and this reduces two closing costs: the buyer’s Mortgage Recording Tax bill and the seller’s New York State Transfer Tax bill. Because a Purchase CEMA requires the permission of the seller and the buyer saves more than the seller, most sellers will use this leverage to propose an equal split of the total savings between the buyer and seller.
   
   

2. Seller Savings with a Purchase CEMA
   
   Under a Purchase CEMA, the seller does not have to pay the New York State Transfer Tax on any existing loan amount which is assigned to the purchaser. The NY State Transfer Tax is currently 0.4% for most residential sales below $3 million, and 0.65% for sales of $3 million or more.
   
   

3. Buyer Savings with a Purchase CEMA
   
   Under a Purchase CEMA, the buyer may not have to pay the Mortgage Recording Tax on any existing loan amount which is assigned from the seller to the buyer. The Mortgage Recording Tax for most residential transactions is currently 2.05% for loans under $500k and 2.175% for loans of $500k or more, however most lenders cover 0.25% of the tax (excluding commercial transactions).
   
   

4. Mortgage Recording Tax
   
   The NYC Mortgage Recording Tax is a buyer closing cost which is 2.05% for loans below $500k and 2.175% for loans of $500k or more. Most lenders cover 0.25% of the tax (excluding commercial transactions). The amount of the Mortgage Recording Tax is based on the amount of new loan being underwritten. This means your MRT bill will continue to go down as you increase the size of your down payment. You can reduce the amount of the Mortgage Recording Tax by negotiating a Purchase CEMA with the seller.
   
   

5. NYS Transfer Tax
   
   The New York State Transfer Tax is 0.4% for sales below $3 million and 0.65% for sales of $3 million or more. The higher rate of 0.65% kicks-in at a lower threshold of $2 million for commercial transactions and residential properties with 4 or more units. Prior to the New York Tax Law amendments in 2019, the NYS Transfer Tax was previously a fixed 0.4% regardless of the sale price. The New York State Transfer Tax is authorized by New York Consolidated Laws, Tax Law – TAX § 1402.

Seller's Attorney Fee

The average real estate attorney fee for a sale transaction in NYC is $2,500 to $5,000. The flat fee rates you are quoted will vary based on the complexity of your real estate transaction. Lawyer fees can exceed $5,000 for properties priced above $5,000,000 and/or more complex transactions. Real estate attorney fees are typically taken at closing and will be part of the closing costs mentioned in your lawyer’s closing statement. Some lawyers may negotiate for half or some other portion of the fee to be paid upfront, with the remainder to be paid at closing.

Move-Out Deposit & Fees

Most condos and co-ops in NYC charge sellers a refundable move-out deposit in addition to a non-refundable move-out fee. Exact fees vary by building, and they are usually listed in the Purchase Application (also know as “board package”). If you’ve already moved out and a unit is vacant, it may be possible for you to request an exception and bypass the fees. The easiest way to do this is by contacting the transfer agent of your building’s managing agent.

Managing Agent Fee

Your building’s managing agent may charge sellers a closing fee to compensate them for the time and effort associated with a real estate closing. While this fee is customarily paid at closing, it may be requested upon submission of the buyer’s board application package along with other fees such as the buyer’s financing fee, move-in/move-out fees and/or move-in/move-out deposits.

Bank Loan Satisfaction Fees

Most banks charge sellers a bank loan satisfaction fee which is payable at the time you pay off your outstanding principal balance. This is a relatively small closing cost, and it’s usually a fixed amount regardless of the size of the outstanding principal balance you’re paying off.

Residential Deed Transfer Fee & ACRIS Filing Fees

The Residential Deed Transfer Fee and ACRIS Filing Fees are relatively small seller closing costs which cover the nominal costs associated with physically recording the sale in public records.

Flip Tax

A “Flip tax” is the most common term for a form of transfer fee charged by Cooperative buildings when an apartment unit is sold, most often seen in New York City co-ops. Since it is not technically a tax, it is not tax-deductible.

Co-ops often have stricter policies than condominiums aimed at attracting buyers who plan to use apartments as long-term residences, and flip taxes exist in part to discourage purchasers from buying and hastily reselling apartments at a profit. Flip taxes also serve to generate funds for the building’s reserve funds without increasing monthly charges for shareholders.

DISCLOSURE: The Davis Team and its affiliates do not provide tax, legal, financial, or accounting advice. This material has been prepared for informational purposes only. No representation, guarantee or warranty of any kind is made regarding the completeness or accuracy of the information provided. Consult your real estate attorney and accountant for final closing cost figures and any all taxes, legal, financial, or accounting advice.