When selling real property in New York City, aside from the real estate commission, on a $900,000 sale you will have to pay the following closing costs as a seller:
1) New York City Transfer Tax of 1.425%. This is reduced to 1% if the sales price in the contract is $500,000 or less.
2) New York State Transfer Tax of 0.04%. This equates to $4.00 per thousand of sales price.
3) Most likely you will also have to pay a $500.00 fee related to the New York State Property Condition Disclosure Law. Your attorney will better explain this to you when the times comes that you are selling.
4) The fee you pay to your attorney. This can vary on a case by case basis (if you want contact me direct and I can give you more insights on this).
5) There are several recording fees you will have to pay especially if you have any liens on the property such as a mortgage. These fees can range from $200.00 or more depending on your circumstances (if you want contact me direct and I can share more insights on this).
Also depending on the circumstances you may have to pay...
6) Capital Gains Taxes which is the tax you pay on the profit that you make on the sale. You will have to speak to your accountant about this or if you prefer you can contact me direct and I can walk you through it over the phone and maybe help you to determine if you will have a capital gains tax burden.
Some food for thought regarding Capital Gains Taxes...
In order to estimate whether or not you will have to pay capital gains, here are some things you should now:
1) In order to figure out capital gains taxes, you first have to find out what your cost basis is. For most people who are selling their primary residence (the home that you live in), your cost basis is what you paid for the house when you purchased the property. If you inherited the house, your cost basis will be raised to the value of the property on the date of death of the person who left you inherited the house from. Cost basis can also vary in the event of a divorce.
2) Once you know the costs basis you have to determine if you have a taxable profit. Here you would take the price you are now selling the property for and subtract your cost basis. From there you can also subtract all the expenses you incurred during the sale (which I described above). You can also subtract any capital improvements you have made to your home while you lived there.
In addition, if you have lived in and have been using the home as your primary residence for at least 2 of the past 5 years you will be entitled to a $500,000 exemption if you are a married couple or a $250,000 exemption if you are single. For most people this exemption will eliminate your capital gains tax burden.
If you need a more detailed explanation based on your circumstances, please contact me direct right away. I can answer any additional questions you have as well.
Mitchell S. Feldman
Associate Broker/ Director of Sales/ e-Pro Realtor
Fillmore Real Estate
Office: (718) 252-2000/ Cell: (917) 805-0783
Your attorney should be able to give you a good estimate, but typically, the seller is responsible for their Realtor, their Attorney and Transfer Tax.
If you owe any unpaid taxes, you must bring that up to date to the closing date.
If there are any liens, equity lines, second mortgages, they must be paid before closing or at time of closing out of proceeds to be able to present clear title.
If you have had any work done on your property without proper C of O's, buyers may want to hold some money in escrow until satisfied or you may have to pursue the permits before closing.
If you have any further questions, happy to chat with you about it.