Thinking about selling your home and want to know what all the closing cost expenses are? Let's go over all the expenses for selling a home in the Westchester and Bronx County markets.
Different areas mean different expense
Closing costs can vary based on location, property type and sales price. This blog is specific to residential real estate for Westchester and Bronx County in New York. If your home is not located in these areas or you are selling commercial real estate, then your closing costs will be slightly different. Once you are serious about selling your home it is best to contact a local real estate agent so they can explain what expenses you will be responsible for.
Attorney Fee ($1,200-$1,500)
In lower New York State, you are required to hire a real estate attorney to represent you in the transaction. Most real estate transactions are simple with minimal problems, however if things should go wrong, you real estate attorney is there to represent your legal rights during the transaction. Your attorney will write your sales contract, review revisions made by the buyers attorney, and schedule you to sign the sales contract. They will also hold on to the buyers good faith deposit and attend the closing to make sure the transaction is completed.
Property Condition Disclosure Statement ($500)
The Property Condition Disclosure Statement is a six page document with close to 100 questions about property you are selling. The seller is given an option to either fill out the statement and be held liable for any incomplete or miss information, or give the buyer a $500 credit at closing for refusing to fill out the form. The benefit to not filling out the form is that the buyer cannot go back to the seller after the closing for any problems that they did not know about before the sale, and the buyer has no rights to make a claim against the seller after the sale is completed.
Almost every attorney will advise you to pay the $500 so that you will never have to worry about what may go wrong with the property after the closing.
If you are selling a coop, the Property Condition Disclosure Statement does not apply to you and you do not have to pay the $500.
Pick Up Fee ($250-$500)
If you have mortgage on your property, it is recorded with the county. Once you pay off the mortgage, it is the seller’s responsibility to erase the recorded mortgage. The closing agent normally collects a “pick up fee” for each mortgage that he gets erased.
Recording Fee ($250-$500)
The new deed for the property also has to be properly recorded and so a portion of the recording fee goes to the county that charges for the recording to be done and normally the closing agent who erases the mortgages is also responsible for recording the new deed and he charges for this as well.
If your title search uncovers any additional expenses such as unpaid tax liens, collection accounts, water bills, unpaid real estate taxes and sanitation tickets they will also have to be paid at the closing table. The title search is normally ordered after a buyer gets a commitment letter from his bank and your attorney should share this information with you a few weeks before the closing.
Real Estate Commission
If there was a real estate agency involved in your transaction their commission will be paid at the closing table. If there were two offices involved each office will receive a check for their portion of the real estate commission.
NY State Transfer Tax (0.4%)
New York charges a 0.4% transfer tax on real estate sales. This is calculated at $4.00 for every $1,000 in sales price, this can be calculated by multiplying your sales price by 0.004.
City Transfer Tax
Each city or town in New York may also impose a transfer tax. Below are the transfer tax amounts for residential for some of the main cities in our area. Commercial real estate pay different transfer tax amounts.
Mount Vernon & Peekskill
First $100,000 of sales price is exempt
Tax increase to 1.425% on sales over $500,000
Rest of Westchester County
Flip Tax (Coops Only)
A flip tax is a tax imposed by the coop to prevent owners from flipping coops as investments. The flip tax for your coop can be found by calling the management office or by reading through the housing rules or by-laws of your coop.Flip Tax (Coops Only)
Pay Off Letters
Pay off letters have to be requested for any outstanding accounts that are connected with your property. Mortgage companies, Home Equity Lines of Credit, and Tax Liens will all issue a Pay Off Letter” so that you can close out your accounts with a zero balance.
You can also use this online spreadsheet to calculate your own closing costs.
Talk to an agent
If you are ready to speak to a real estate agent, we are here to help! You can always reach us at (718) 679-0511 or you can email us at firstname.lastname@example.org!
If you have any more real estate related questions, we want to hear from you! Feel free to connect with us on social media or through our website and let us know what other questions you may have. If you found this information useful please share!
What are the closing costs for selling a home?
Author:Walter Sarmiento Phone: 718-679-0511 Dated: November 20th 2016 Views: 1,012 About Walter: ...
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