Understanding Closing Costs in NYC: What First-Time Buyers Should Know in 2025

🗝️ Buying a Home in NYC? Don’t Forget the Closing Costs.

When first-time buyers plan their budget, they often focus on the down payment—but the closing costs can catch many by surprise. These additional fees are what finalize your home purchase, and in New York City, they can add up quickly.

Understanding what they are (and how to prepare for them) can make the difference between a smooth closing and last-minute stress.

💡 What Are Closing Costs?

Closing costs are the one-time fees paid at the end of a real estate transaction—covering legal, lender, and government-related services that make your home purchase official.

In NYC, buyers typically pay between 2% to 5% of the purchase price in closing costs. For a $700,000 condo, that’s roughly $14,000–$35,000.

🧾 Common Closing Costs in NYC

Here’s a breakdown of the most common fees first-time buyers encounter:

1. Mortgage-Related Fees

• Bank Fees: Loan origination, credit checks, and underwriting costs.

• Appraisal Fee: Confirms your home’s market value.

• Title Search & Insurance: Protects against potential ownership disputes.

2. Government & Recording Fees

• NYC & NYS Transfer Taxes:

  • 1.4% to 1.825% (depending on property price).

  • Paid by the seller in most resale deals, but buyers of new developments often shoulder it.

• Mansion Tax:

  • Applies to properties $1 million and up (starts at 1%, increases with price).

• Recording Fees:

  • Small administrative fees for filing your deed and mortgage with the city.

3. Legal & Professional Fees

• Attorney Fees: Expect $2,000–$3,500 for a real estate lawyer to review contracts and ensure a clean transaction.

• Title Company Fees: For title insurance and due diligence.

• Board Application Fees (for co-ops): Application, move-in, and processing fees can range from $500–$2,000.

📍 Closing Costs by Property Type

🏙️ Closing Costs Across NYC Boroughs

Brooklyn

Brooklyn buyers often see moderate closing costs—especially on co-ops or older condos. However, with more new development condos in areas like Downtown Brooklyn or Williamsburg, buyers may shoulder additional transfer taxes and sponsor attorney fees.

Queens

Queens remains one of the most cost-effective boroughs for first-time buyers. With fewer luxury developments, closing costs stay on the lower end, especially in neighborhoods like Forest Hills or Bayside.

Manhattan

Expect higher totals here—Manhattan properties often exceed the $1M mansion tax threshold, and legal fees can be slightly higher due to transaction complexity.

💬 Can You Reduce Your Closing Costs?

Yes — here are a few smart strategies:
✅ Negotiate with your lender. Some banks offer “no-closing-cost” mortgage options in exchange for slightly higher rates.
✅ Ask for seller concessions. Especially in slower markets, sellers may agree to cover part of your costs.
✅ Shop around for services. You can often choose your title company, inspector, and lender.

💡 Tip: Always request a Loan Estimate early in your process. This document lists all expected closing costs and helps you compare lenders easily.

🕒 When Are Closing Costs Paid?

All fees are due at closing day, typically 30–60 days after your offer is accepted. Your lender will provide a Closing Disclosure at least three days before closing, outlining every charge—so you can review, verify, and budget accurately.

🧭 How Brooklyn Home Sweet Homes Can Help

Buying your first home in NYC is exciting—but it’s easy to overlook small details that add up. Our team at Brooklyn Home Sweet Homes helps first-time buyers:

• Estimate total costs early in the process

• Find trusted mortgage and legal partners

• Negotiate better terms with local insight

We guide you from pre-approval to closing, ensuring no surprises on your journey to homeownership.

🔑 Ready to Budget Like a Pro?

Understand your full home-buying costs before you make an offer.