Table of Contents
Cost Breakdown for a New York City Condo Seller
When selling a condo in New York City, there are several costs to account for. Here’s a detailed breakdown:
Total Estimated Seller Costs:
-
- Agent Commission “Broker Fee”: 5% to 6% of the sale price (Now more flexible since August 2024)
-
- City Transfer Tax: 1% to 1.425% of the sale price
-
- State Transfer Tax: 0.4% of the sale price
-
- Attorney Fees: $2,500 to $5,000+
-
- Flip Tax (rare, if applicable): 1% to 3%
- Other Fees: Move-out, mortgage payoff, and closing fees may add $1,000 to $3,000+
1. Real Estate Agent Commission (5% to 6%)
Typically, the seller pays both the buyer’s and seller’s agents, with a standard commission ranging between 5% and 6% of the sale price.
-
- Example: For a $1,000,000 condo, the commission would be around $50,000 to $60,000.
***Please note: After August 2024, the seller can choose NOT to pay the buyer’s broker’s commission. Additionally, brokerage commissions are always negotiable. In other words, sometimes, real estate agents may agree to a significantly lower commission rate (such as 1-2%) in exchange for more exposure and faster deal.***
2. New York City Transfer Tax (1% to 1.425%)
New York City imposes a transfer tax, calculated as follows:
-
- 1% for sales under $500,000
-
- 1.425% for sales over $500,000
- Example: For a $1,000,000 sale, the transfer tax would be $14,250.
3. New York State Transfer Tax (0.4%)
New York State charges an additional transfer tax of 0.4% of the sale price.
- Example: For a $1,000,000 condo, the state transfer tax would be $4,000.
4. Attorney Fees ($2,500 to $5,000+)
Legal representation is required for the seller. Attorney fees typically range from $2,500 to $5,000 or more, depending on the complexity of the transaction.
5. Flip Tax *Rare* (1% to 3%)
Some condo buildings charge a flip tax, which can range between 1% and 3% of the sale price. This cost may be negotiable between buyer and seller. This is more commonly seen in Cooperatives “Coops” and “Condops” as opposed to Condos.
- Example: For a $1,000,000 sale, a 2% flip tax would be $20,000.
6. Payoff Fees for Outstanding Mortgage
If there’s a mortgage on the property, sellers need to settle it upon sale. There may be administrative fees associated with the payoff.
7. Move-Out Fees ($500 to $2,000+)
Condo buildings may charge move-out fees or security deposits to cover potential damages during the moving process.
8. Condo Building Closing Fees
Some buildings charge additional fees for managing the closing process, such as administrative or processing fees, which can range from $500 to $1,000.
If you’re considering selling and the cost of transaction is too high, we’re happy to discuss potential commission discount on a case-to-case basis.