Customary Closing Costs

Customary Closing Costs for Residential Transactions

It’s good to anticipate the costs related to a real estate closing well in advance to the actual meeting. Please keep in mind that that this list includes many typical closing costs, but not necessarily those that may apply to your closing. When your mortgage is approved, ask the lender and your attorney for full disclosure of all closing costs. On the day you close on your new home, you have the right to inspect the property and to review any improvements or corrections that were agreed to by the seller.

 

Seller’s Estimated Closing Costs

  • Real Estate Broker Commission: 5-6% of Selling Price
  • New York State Transfer Tax: $4.00 per $1,000 of Sale Price (.4% of sale price)
  • Attorney Fee (Varies with attorneys)
  • Outstanding Mortgage Payoff
  • County Clerk Recording Fee – $30.00 – $100.00 – to record the sale in town records

 

Buyer’s Estimated Closing Costs

  • Mortgage Fees – includes document preparation fee relative to the mortgage
  • Application Fee  |  Points  |  Appraisal Fee  |  Pro-Rated Interest
  • Mansion Tax (1% of entire price if it exceeds $1,000,000)
  • Heating Oil/Fuel: amount remaining as of the closing date (usually current market price per gallon)
  • Property Tax Escrow – paid to the lender at closing for pre-paid real estate taxes, flood or hazard insurance premiums for 2-3 months. If paid to private vendor, proof supplied at closing
  • Private Mortgage Insurance (if down payment is less than 20%)
  • Fire / Hazard Insurance
  • Flood certification Fee – paid to the lender to verify your purchase, relative to flood zone
  • Title Insurance (variable based on property’s value, standardized by law) – to protect the buyer and lender from any future, unexpected claims on the property
  • Attorney Fee (Varies with Attorneys)
  • Title Search Fee – to review the title for liens, problems, etc.
  • Title Closer Gratuity (suggested $100.00)
  • County Clerk Recording Fee – $30.00 – $100.00 – required by local and state government to record the transaction