Home Buying in New York>Question Details

eclark437, Home Buyer in New York, NY

are the closing costs on a condo substantially higher than on a coop? If this is true, why and by how much more?

Asked by eclark437, New York, NY Sat Sep 15, 2012

If I am buying a condo in brooklyn for mostly cash what is the range for closing costs? If I am not taking out a mortgage is there any tax on the sale itself?
thanks

Help the community by answering this question:

Answers

6
Dear Eclark 437 !'
Here are the cost for a condo if is only cash:
Real Estate Tax Escrow 2-6 months
If Purchased Directly from Sponsor *New Developments
NYC Property Transfer Tax 1% of purchase price up to $500,000
1.425% of purchase price over $500,000
NYS Transfer Tax $4 per $1,000 of the purchase price
Sponsor's Attorney Fee $1,500

For a coop:
Own Attorney $1,500 + up
Managing Agent Application Fee $500
Credit Report Fee $75 - $100 per applicant
Lead Based Paint Disclosure Fee $0 - $50
Mansion Tax 1% of purchase price when $1 million +
Move-in Deposit $500 - $1,000 (refundable if no damage)
Common charges, real estate taxes and insurance pro rated as of closing

If Purchased Directly from Sponsor *New Developments
NYC Property Transfer Tax 1% of purchase price up to $500,000
1.425% of purchase price over $500,000
NYS Transfer Tax $4 per $1,000 of the purchase price
Sponsor's Attorney Fee $1,500
1 vote Thank Flag Link Sat Sep 15, 2012
Yes, closing costs for a condo are significantly higher than those of a co-op. Check out http://www.BuyingNYC.com for a breakdown for both condos and co-ops. If you are purchasing in a new development, buyers usually also pay the NYC state and city transfer tax plus sponsor attorney fees (unless you are able to negotiate those away). In general, you can be looking at closing costs of 3-5% of the purchase price for condos and about $5K for co-ops unless it is a sponsor unit.

Brad Malow
Rutenberg Realty
http://www.BuyingNyc.com
Bmalow@crrnyc.com
Web Reference: http://www.BuyingNyc.com
1 vote Thank Flag Link Sat Sep 15, 2012
If you are not taking mortgage you are saving on mortgage recording tax. You still have to pay Title Insurance, Title Search & Recording Fees that you do not have in coops - Approximately 0.5% of purchase price .

If Purchased Directly from Sponsor you pay: ( i.e.: new development, etc. )

NYC Real Property Transfer Tax
1% of purchase price up to $500,000
1.425% of purchase price over $500,000

NYS Transfer Tax
$4 per $1,000 of purchase price

Sponsor's Attorney Fee $1,500 and up

Mansion tax 1% on over 1MM purchase is the same for coops and condo and attorney fees are approximately the same.
0 votes Thank Flag Link Tue Sep 18, 2012
Title insurance and mortgage tax largely make up the difference between a condo and coop closing costs. You pay both when you buy a condo and neither when you buy a coop. Both are based upon the purchase price and/or loan amount. Also, in most cases, condo prices are higher than comparable coop prices.
0 votes Thank Flag Link Mon Sep 17, 2012
Ask your loan officer, and or attorney for a good faith estimate of closing costs....
0 votes Thank Flag Link Sat Sep 15, 2012
You're comparing apples to oranges but like a house your closing costs will be contingent upon how much you are borrowing and the terms of your loan. You will have to speak with a loan officer with real properties in mind, and the terms of our offer. Regarding the second part of your question, do you mean is their any tax on the purchase itself, if so, the answer is no.
0 votes Thank Flag Link Sat Sep 15, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer