One of the most common questions our office gets is what are the closings costs going to be when buying a co-op or condominium in New York City. Well, unfortunately, in New York City, it is not just the real estate that is expensive. Whether you are buying a home, townhouse, condominium or cooperative, you’re looking at thousands of dollars in taxes and fees.
Ensuring you pay only what you should and not surprised at the last moment with more fees is just one of many reasons why experienced legal representation is essential. At the Kohina Law Firm, our attorneys guide individuals and families through residential real estate purchases, bringing clarity to a complex and stressful process.
ANTICIPATING YOUR CLOSING COSTS IS VITAL
In New York City, every buyer of a co-op or other property is going to pay a “mansion tax” of 1 percent if the purchase price is higher than $1 million. Every seller in New York City will also have to pay separate city and state real estate transfer taxes, which may be passed on to the buyer in certain transactions.
Each type of property also has its own fees associated with it. Co-Ops and Condo’s are completely different creatures, so I’m going to explain them separately. What you need to know at least initially is the following (1) If you’re buying a co-op in New York City, you’re going to spend a lot less in closing costs than if you are buying a condo in New York. (2) In either situation, you need to know how much you’re likely going to spend, well in advance of even putting out an offer in on a property, because it’s going to affect your decision and your ability to afford the property.
At Kohina Law Firm we pride ourselves on helping clients fully understand what they are buying and what they are paying for. We will help you make sense of all the numbers and provide you with the transparency you need to make the right decisions.
Another important aspect of the closing costs is making sure you get your money’s worth. When you are buying a condo or a co-op, you want to make sure you are buying into a building that is properly managed and spends your money effectively. We review the building’s financials and its board to help you close on a property that is worth the investment.
Below are most of the fees you’re likely going to pay whether you are buying or selling a home, townhouse, condominium or cooperative. Possibly the most important thing is for you to familiarize and anticipate these fees way ahead of time. Don’t wait until the last minute to find out how much you’re going to have to shell out at the closing. There are typically two ways to find out how much you’ll pay. (1) Your lender will give you something called a Good Faith Estimate, which will outline, generally, how much you’ll be paying. (2) A good attorney should be able to ask the title company they work with to send over a copy of an estimated title bill. That bill, which we always request in advance, should lay out all of the fees you’re likely to pay and should give you a good estimate as to how much you’ll be paying.
CLICK IMAGE TO DOWNLOAD
Feel free to download the comprehensive New York City closing costs worksheet I prepared. See if there are any closing costs you have not anticipated and take them into account.
The last thing to remember is that things can change. Just because your title bill says one thing doesn’t mean the final bill won’t come out a bit differently. It’s critically important to be in communication with all sides to ensure you know exactly how much you’re paying during your NYC Condo purchase.
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