What Costs Do Buyers Pay in Addition to the Purchase Price in New York?

In New York State, both buyers and sellers are required to retain attorneys to complete a real estate transaction.

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• Buyer’s attorney fees typically range from $1,000–$3,500.

• For new development purchases, buyers generally pay both their own attorney’s fee and the sponsor’s attorney fee.

• For resale transactions, each party usually pays their own attorney.

Inspection fees vary depending on property type, size, age, and scope of inspection.

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• Condo or Co-op:
  Basic inspection covering appliances, plumbing, leaks, water pressure, HVAC systems, etc.
  Typically $300–$600.

• Townhouse or Single-Family House:
  More comprehensive inspection including roof, foundation, structure, electrical systems, boiler, drainage, and exterior areas.
  Typically $600–$1,200.

In New York, transfer taxes consist of two components: New York State transfer tax and New York City transfer tax.

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• For new developments, transfer taxes are typically paid by the buyer.

• For resale properties, transfer taxes are generally paid by the seller.

 

New York State Transfer Tax

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• Under $2 million: 0.4%

• $2 million and above: 0.65%

 

New York City Transfer Tax

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• Under $500,000: 1.425%

• $500,000 and above: 2.625%

In New York State, residential properties with a purchase price of $1,000,000 or more are subject to an additional Mansion Tax, which must be paid by the buyer.

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The tax applies to both new developments and resale transactions and is calculated based on the total purchase price.

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                 Purchase Price                                        Mansion Tax Rate

                     

                   $1M–$1.99M                                                       1%

                  $2M–$2.99M                                                    1.25%

                  $3M–$4.99M                                                     1.5%

                  $5M–$9.99M                                                    2.25%

                  $10M–$14.99M                                                 3.25%

                  $15M–$19.99M                                                  3.5%

                  $20M–$24.99M                                                3.75%

                       $25M+                                                           3.9%

For condominium purchases, buyers must purchase owner’s title insurance, with premiums regulated by New York State.

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• Typically ranges from 0.4%–0.6% of the purchase price (marginal rates decrease as price increases).

 

If financing, buyers must also purchase lender’s title insurance, typically around 0.2%–0.3% of the loan amount (exact pricing depends on title company quote).

In New York City, buyers obtaining a mortgage must pay a Mortgage Recording Tax, consisting of:

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• NY State tax

• NY State additional tax

• NYC tax

 

Tax Rates Based on Loan Amount

• ≤ $500,000: 1.75%

• $500,000: 2.0%

 

In practice, some lenders may offer credits covering approximately 0.25%, resulting in an effective cost of approximately 1.5%–1.75%. Final amounts depend on lender disclosures.

Mortgage buyers may also incur:

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• Loan discount points (0–3%)

• Application fee ($400–$800)

• Bank attorney fee ($750–$1,500)

• Appraisal fee

• Recording fees ($150–$250)

• Prepaid interest (typically less than 1 month)

In certain transactions — especially for investment properties, LLC purchases, self-employed borrowers, foreign income, or high-net-worth clients — banks may conduct an internal RMU (Relationship Management Unit) review.

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RMU is not a fee. It is an internal risk assessment process.

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Banks may require buyers to maintain post-closing liquidity reserves equal to 6–12 months of mortgage payments and housing expenses. These funds remain fully owned by the borrower and are not paid to the bank.

Separate from lender requirements, Condo or Co-op buyers may be required to pay a one-time Working Capital Contribution to the building’s HOA at closing.

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• This fee is non-refundable.

• It does not count toward the down payment.

• The amount is specified in the building’s offering documents.

The above costs are primarily one-time closing expenses and do not include long-term ownership costs such as:

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• Annual property taxes

• HOA or maintenance fees

• Homeowner’s insurance

 

Buyers should account for both upfront and ongoing costs when planning their purchase.

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Acre agents assist buyers in systematically planning and understanding all transaction-related costs and coordinate with attorneys, lenders, inspectors, and title companies to ensure informed, financially sound decisions throughout the buying process.