Dear Curious T:
Sometimes the seller of property may request that the buyer pay the transfer taxes. This request usually would be made prior to you submitting an offer as a buyer. If that is the case your closing costs would be that much higher. You can always express to the seller that you are not willing to pay those transfer taxes, but the seller may refuse your offer or want more money on the sale priced based on that. Also, if you do not have the available funds to pay the transfer taxes then you simply cannot do it even if you wanted to. Everything in life is negotiable so put your best foot forward.
Here in Brooklyn closing costs are 1% of the sales price to the city if the sales price is $500,000 or less. For sales prices above $500,000 the city get 1.425% of the asking price. You also have state transfer tax which is .04% ($4.00 peer thousand) of sales price.
If the sales price is $1,000,000 or more the buyer also has to pay mansion tax which is 1% of the sales price. So keep that in mind if your going into the six figures!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783