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How Much are Closing Costs in New York?

How Much are Closing Costs in New York

What Are Closing Costs?

In the world of real estate, the question of “how much is closing cost in NY?” is a common concern for buyers and sellers alike. Closing costs are the fees and expenses incurred during the process of finalizing a property transaction. These costs can include various charges such as loan origination fees, appraisal fees, title insurance, inspection fees, and more. The specific amount and components of closing costs can vary depending on factors like property location, purchase price, and mortgage type.

Who’s Responsible for Closing Costs in New York?

In New York, both buyers and sellers share the responsibility of paying closing costs. However, the specific amounts and fees each party is responsible for can differ based on the agreement between the buyer and seller. It’s essential to negotiate and clarify these responsibilities during the transaction process to avoid any surprises or misunderstandings.

New York Seller’s Closing Costs Breakdown

When it comes to sellers in New York, there are several fees to consider as part of the closing costs. Let’s take a closer look at some of these expenses.


Realtor fees, also known as commission fees, are a significant part of a seller’s closing costs. In New York, these fees typically range from 5% to 6% of the property’s sale price. This amount is split between the buyer’s agent and the seller’s agent.

Recording Fee

Recording fees are charged by the county clerk’s office to record the deed and mortgage documents. In New York, these fees can range from $50 to $200, depending on the county and the number of pages to be recorded.

Escrow Fee

Escrow fees are the costs associated with managing the escrow account, which holds the funds during the transaction process. These fees are usually split between the buyer and seller and can range from $500 to $1,000 in New York.

Home Inspection Fee

Although it’s more common for the buyer to cover the home inspection fee, some sellers choose to conduct a pre-listing inspection. In New York, these fees can range from $300 to $1,000, depending on the property’s size and complexity.

New York Buyer’s Closing Costs Breakdown

Buyers in New York also have their share of closing costs to consider. Let’s examine some of the most common fees.

Homeowner Fees

Homeowner fees, also known as HOA fees or maintenance fees, may be required if the property is located in a community with a homeowners association. These fees can vary significantly depending on the amenities and services provided, with monthly costs ranging from $100 to $500 or more.

Lender Fees

Lender fees are charged by the mortgage provider for processing, underwriting, and funding the loan. These fees can include loan origination fees (typically 0.5% to 1% of the loan amount), credit report fees, and discount points.

Third-Party Fees

Third-party fees cover the costs of services provided by external parties during the transaction process, such as appraisals, title insurance, and inspections. These fees can vary but typically range from $1,000 to $3,000 or more, depending on the services required and the property’s value.

How Much are Closing Costs in New York

If you’re wondering, “how much is closing cost in NY?”, you’re not alone. Understanding how closing costs are calculated is crucial for both buyers and sellers. Closing costs are typically a percentage of the property’s sale price, ranging from 2% to 5%. To estimate these costs, consider factors such as loan origination fees, appraisal fees, title insurance, inspection fees, and other expenses. It’s essential to keep in mind that each transaction is unique, and the specific fees and charges can vary depending on the property and the agreement between the buyer and seller.

Refinancing Your Home and Closing Costs in New York

Closing costs in New York for refinancing can differ from those of a traditional home purchase. Similar fees, such as loan origination fees, appraisal fees, and title insurance, may apply, but their amounts can vary. On average, homeowners in New York can expect to pay between 2% and 3% of the loan amount in closing costs when refinancing. It’s crucial to shop around for the best mortgage rates and terms to minimize these costs and maximize the benefits of refinancing.

Beware of Unnecessary Closing Costs in New York

When navigating the world of real estate transactions, it’s essential to be aware of any “junk” closing costs that could inflate your overall expenses. These fees might include charges for services that are unnecessary or redundant. Some examples of junk closing costs to watch out for are document preparation fees, courier fees, administrative fees, and excessive processing fees. To avoid paying these unnecessary costs, carefully review the Loan Estimate and Closing Disclosure forms provided by your lender, and don’t hesitate to ask questions or negotiate if you spot any suspicious charges.


As an experienced professional in the mortgage loan and property market, Help individuals and families achieve their homeownership dreams.  My mission is to simplify your real estate journey and secure the best possible outcomes in this ever-changing market.

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