Closing costs in New York: What buyers and sellers pay

When you buy a home in New York, you may find that your closing costs are higher than they might be in other states. Closing costs are all the fees that come along with finalizing a real estate purchase and are typically shared between the buyer and seller. So, just how much are closing costs in New York State? Let’s look at how closing cost fees work in New York and what fees you can expect to pay.

Key takeaways:

• Buying a home in New York typically comes with higher closing costs than most other states, largely due to higher home prices and state- and city-specific taxes and fees.
• While both the buyer and seller pay closing costs, each party is responsible for different fees.
• Homes in New York City often carry additional expenses like the mansion tax, mortgage recording tax, and co-op or condo-related fees that can increase total closing costs.

How much are closing costs in New York?

The average closing costs in New York are $23,451.94, based on data from Rocket Mortgage¹. This makes New York's average purchase closing costs the third highest in the United States after the District of Columbia and Delaware. For context, the national average for purchase closing costs is $14,564.12.

When refinancing², the average closing costs in New York are $11,949.07, which is the highest in the nation. The national average of refinance closing costs is $8,474.14.

One of the primary reasons for high closing costs in New York is the price of housing in the Empire State.

According to Redfin data, the median home sale price in New York State was $547,719 as of August 2026, up 5.9% year-over-year. In comparison, the national median was $398,596 for that same period, a striking difference of $149,123. Higher property values are one of the primary reasons closing costs in New York tend to be so steep, especially in high-demand markets.

Average buyer closing costs in New York

Buyers in New York pay an average of 4.2% of the median sale price in closing costs when purchasing a home. On a $400,000 home purchase, that would come out to an average of $16,800. Keep in mind that closing costs can range between 3% - 6% depending on location, loan type, and property type. On a $400,000 home, that can come out to anywhere between $12,000 - $24,000.

Average seller closing costs in New York

Sellers in New York pay between 8% - 10% of the home's final sale price in closing expenses. For a $400,000 home, that comes out to between $32,000 - $40,000. Real estate agent commissions make up the largest portion - typically 5% to 6% - with state and local transfer taxes, attorney fees, and recording fees completing the total.

Who pays closing costs in New York?

Both the buyer and seller pay closing costs – it just depends on the cost itself. Below is a table outlining some of the most common closing costs you might encounter when buying or selling a home in New York and which party typically covers that fee. This list isn’t exhaustive, but it covers many of the standard seller and buyer fees you can expect to see.

Buyer closing costs in New York

Buyers cover expenses related to securing their mortgage financing, verifying title clarity, and funding property escrows:

• Loan origination, application, and underwriting fees
• Property appraisal and survey fees
• Credit report charges
• Lender's title insurance policies
• Mortgage recording taxes
• Buyer attorney fees
• Mansion Tax (if property sale price is $1 million or higher)

Seller closing costs in New York

Sellers cover expenses related to transferring ownership and fulfilling contractual obligations:

• Real estate agent commissions (typically split between listing and buyer agents)
• New York State Real Estate Transfer Tax
• NYC Real Property Transfer Tax (if property is within NYC)
• Seller attorney fees
• Title payoff or lien satisfaction recording fees
• Co-op flip taxes or condo move-out fees (where applicable)

Which closing costs can be negotiated?

Certain fees at closing are negotiable depending on market conditions and the sale agreement:

• Seller concessions: Buyers can request that sellers cover a portion of their closing costs.
• Attorney fees: Legal rates vary by attorney and can be negotiated before hiring legal counsel.
• Lender fees: Origination charges, rate locks, and processing fees can vary between lenders.
• Real estate commissions: Commission percentages paid by the seller can be negotiated during the listing agreement stage.

What is included in closing costs in New York?

Closing costs in New York cover a wide range of fees and services needed to finalize a real estate transaction. While buyers and sellers typically share the costs, each side is responsible for different expenses. And in many cases, these fees can be negotiated as part of the purchase and sale agreement.

If you’re buying or selling in New York City, be prepared to pay additional charges that can significantly increase your costs.

Mansion tax

The New York Mansion Tax applies to residential purchases statewide where the purchase price is $1 million or higher. The buyer pays this tax, which starts at 1.0% for properties priced between $1 million and $1,999,999, and scales progressively up to a maximum rate of 3.9% for residential properties sold for $25 million or more in New York City.

Mortgage recording tax

Buyers who finance their home purchase in New York City must pay a mortgage recording tax, which is based on the loan amount. While state base rates apply, localized surtaxes push rates higher in specific counties. In New York City, the Mortgage Recording Tax breaks down as:

• Loans under $500,000: 1.80% of the mortgage amount.
• Loans of $500,000 or more: 1.925% of the mortgage amount.

Cash purchases and co-op purchases avoid the mortgage recording tax because co-op buyers purchase shares in a corporation rather than real property.

Transfer taxes

State and city governments tax real estate ownership transfers:

• New York State Transfer Tax: Standard rate of 0.4% paid by the seller across the state. An additional 0.25% "tax on residential transfers" applies to NYC residential sales over $3 million.
• NYC Real Property Transfer Tax (RPTT): For NYC properties sold for $500,000 or less, the rate is 1.0%. For properties sold over $500,000, the rate rises to 1.425% paid by the seller.

Co-op, condo, and new construction fees

• Co-op fees: Buyers face application fees, criminal background checks, credit checks, and managing agent processing fees. Sellers may owe a "flip tax"—a fee charged by the co-op board ranging from 1% to 3% of the sale price.
• Condo fees: Buyers pay board application fees, move-in deposits, and common-charge escrow deposits.
• New construction fees: Developers routinely pass their transfer taxes and developer attorney fees onto the buyer, increasing buyer closing costs significantly.

Tips for reducing your closing costs in New York

Closing costs in New York can add up quickly, but there are several ways to minimize what you’ll pay at the closing table. Here are a few strategies to consider:

Compare lenders

Every lender structures their fees differently. Comparing Loan Estimates from multiple lenders can help you identify lower origination or underwriting fees, as well as better interest rate options. Even a slight difference in lender costs can save you hundreds or even thousands of dollars.

Ask for seller concessions

One of the most common ways to reduce your out-of-pocket costs is to ask the seller to cover a portion of your closing costs. Seller concessions can be an important part of negotiations, especially if the home has been on the market for a while or the seller is motivated to close quickly. In a buyer’s market, where supply outweighs demand and buyers have an upper hand, a seller may agree to concessions to help finalize the deal.

Negotiate the sale price

Because closing costs are calculated as a percentage of your home's purchase price, negotiating a lower sale price can directly reduce your total costs. For example, reducing the purchase price by $10,000 could save you between $200 and $500 in closing fees, depending on your percentage.

Consider no-closing-cost or low-fee options

A no-closing-cost mortgage allows buyers to roll up-front closing fees into a slightly higher interest rate or add them to the total loan balance, reducing out-of-pocket cash needed at the closing table. However, keep in mind this can result in a higher monthly payment and more interest paid overall.

FAQ

Here are the answers to some frequently asked questions about closing costs when you buy a home in New York.

Why are closing costs so high in NY?

Closing costs in New York are higher due to high median home prices, state title insurance rates, and high state and municipal taxes - specifically the Mortgage Recording Tax, Transfer Taxes, and Mansion Tax.

Can I roll closing costs into my mortgage in New York?

Yes, buyers can roll certain closing costs into their overall mortgage balance or negotiate lender credits in exchange for a slightly higher interest rate, reducing the amount of cash you’ll need to pay upfront.

When do I pay closing costs in New York?

Buyer closing costs are paid at the official closing meeting via wire transfer or cashier's check. Seller closing costs are deducted directly from the sale proceeds at closing before net funds are distributed.

Are closing costs tax deductible in New York?

Most closing costs are not directly deductible in the year you buy a home. However, prepaid property taxes, mortgage interest, and discount points may be tax-deductible.

The bottom line

New York is one of the most expensive states to buy a home and pay closing costs due to the state’s high property values, unique taxes, and legal requirements. Some of these costs can’t be avoided but understanding how these fees work and how to negotiate and understand what you’ll need to pay up-front is important.

If you’re ready to take the next step toward homeownership, you can start your application today with Rocket Mortgage.

 ² Refinancing may increase finance charges over the life of the loan.