Townhouse Closing Costs

When selling a townhouse in New York City, sellers typically encounter several closing costs. The specific costs can vary depending on factors such as the sale price of the townhouse, any negotiated agreements, and the individual circumstances of the transaction. Here are some common closing costs that sellers may incur when selling a townhouse in NYC:

1. Broker’s Commission: If you have enlisted the services of a real estate broker to help sell your townhouse, you will likely be responsible for paying their commission. The commission is typically a percentage of the sale price, typically ranging from 5% to 6% of the total sale price, although it can vary based on negotiations and the specific broker agreement.
2. Transfer Taxes: In New York City, sellers are typically responsible for paying transfer taxes. The transfer tax rate is based on the sale price of the townhouse. As of my knowledge cutoff date in September 2021, and the transfer tax rate for residential properties sold for under $500,000 is 1% of the sale price. For residential properties sold for $500,000 or more, the rate is 1.425% of the sale price.
3. Attorney Fees: It is common for sellers to engage a real estate attorney to handle the legal aspects of the townhouse sale. Attorney fees can vary depending on the complexity of the transaction and the attorney’s hourly rate or flat fee structure.
4. NYC Mansion Tax: If the sale price of the townhouse exceeds $1 million, sellers are subject to the NYC Mansion Tax. The mansion tax rate varies on a sliding scale, starting at 1% and increasing for higher sale prices.
5. The payoff of Existing Mortgage: If you have an outstanding mortgage on the townhouse, you will need to pay off the remaining balance, including any prepayment penalties or fees associated with the loan.
6. Prorated Expenses: Sellers may be responsible for prorated expenses, such as property taxes, common charges, or maintenance fees. These expenses are typically calculated up to the closing date based on the agreed-upon terms in the purchase contract.
7. Miscellaneous Fees: There may be additional fees, such as recording fees for releasing the mortgage lien, certificate of satisfaction fees, and any outstanding bills or fees owed to the homeowners’ association or cooperative board (if applicable).

It’s important to note that these are general closing costs, and the actual costs can vary based on individual circumstances and the specific terms of the sale agreement. It is advisable to consult with a real estate attorney or a qualified real estate professional for precise information regarding your specific townhouse sale in New York City.