When selling a condo in New York City, sellers typically have certain closing costs to consider. These costs can vary depending on factors such as the sale price, any negotiated terms, and specific circumstances surrounding the transaction. Here are some common seller closing costs for selling a condo in NYC:
- Broker’s Commission: If you work with a real estate agent or broker to sell your condo, you will typically pay a commission fee. The commission is usually a percentage of the sale price, typically around 5-6% of the total sale price, but it can vary based on the agreement with your broker.
- NYC Transfer Tax: Sellers in NYC are responsible for paying the NYC Transfer Tax. The tax rate is typically 1% for sales of $500,000 or less, and 1.425% for sales over $500,000. In some cases, the tax may be split between the buyer and seller, depending on the negotiated terms of the sale.
- NYS Transfer Tax: In addition to the NYC Transfer Tax, sellers may also be responsible for paying the New York State Transfer Tax. The tax rate is generally 0.4% of the sale price.
- Attorney Fees: Sellers often hire a real estate attorney to handle the legal aspects of the transaction. Attorney fees can range from a few thousand dollars to several thousand dollars, depending on the complexity of the sale and the attorney’s hourly rate.
- Condo Association Fees: Sellers may need to pay outstanding common charges, assessments, or other fees owed to the condo association up to the date of closing. These costs can vary depending on the specific terms of the condo association and any outstanding charges.
- Mortgage Payoff and Prepayment Penalties: If you have an existing mortgage on the condo, you will need to pay off the remaining balance at the time of closing. Some lenders may charge prepayment penalties if you pay off the mortgage early, so it’s important to review your loan terms.
- UCC-3 Filing Fee: If there is a UCC-1 Financing Statement filed against the condo, a UCC-3 Termination Statement may need to be filed, which can involve a filing fee.
- Condo Board Fees: Depending on the condo association’s rules, there may be fees associated with transferring ownership, such as an application fee or move-out fee.
It’s essential to consult with a real estate attorney or a qualified professional to get accurate estimates of your specific closing costs as a seller. They can guide you through the process and help you understand all the expenses involved in selling your condo in New York City.