What are the taxes and fees involved with selling a coop apartment worth about $800K?

Asked by iamnamedamy, New York, NY Wed Jun 13, 2012

I know there is the agent's fee ~6%, and taxes....but how much can I expect to pay in closing costs? Are there any other fees? There is no flip tax.

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11
Jack Ramone, Home Buyer, New York, NY
Tue Sep 27, 2016
I've referenced a very comprehensive article on NYC real estate closing costs below. Besides the 6% "typical" broker fee, you'll face 2% in flip taxes for most co-ops plus 2.025% in city and state transfer taxes. You'll also have other smaller closing costs ... pls see article below. It's quite a smack in the face!!!

By the way, the transfer taxes and flip taxes you can't get around, but you can save on the broker commission at least through a flat fee RLS listing or an agent managed listing. Otherwise over 10% in closing costs is pretty tough to stomach for anyone...
2 votes
This is actually the most comprehensive article I've ever seen to be honest ... sorry but the closing costs for a co-op in nyc are a doozy. About 10% it seems with just the standard 6% broker fee, transfer taxes and flip taxes.

Of course what Hauseit is saying is that you can eliminate the entire 6% broker fee ... makes quite a big difference if you ask me. And this is before all the other various closing costs like attorney fee, move out fee etc
Flag Mon Mar 6, 2017
Jerald Cars…, Agent, New York, NY
Wed Jun 13, 2012
This what it will cost you.

New York City Transfer Tax
…………….1.425% of entire gross purchase price,
if price exceeds $500,000.
New York State Transfer Tax……….......0.4% (.004) of gross purchase price.
Bank, Satisfaction of Mortgage Fees…..approx. $450, as determined by bank.
Recording, ACRIS, other fees ……….approx. $150.
Gains Tax Withholding………………. ….8.97% of gain.
(Out of State Seller)
Non – US Resident (FIRPTA)……………10% of price withheld or paid.
Stock Transfer Tax (Coops only) …$0.05/share.
2 votes
Thanks, do you know capital gains tax if you are a NY state seller?
Flag Sun May 22, 2016
Scottfarley1, Home Buyer, New York, NY
Tue Nov 15, 2016
This is something you definitely want to figure out before you act. For one, you'll have to pay a flip tax for most co-ops (check out link to the short video I included below or read this http://www.hauseit.com/closing-costs-nyc/) which can be 2% of the sale price. You'll also have to deal with NYC and NY State transfer taxes which the seller usually pays. I believe that is around 1.8% ... check the article!
Web Reference:  https://youtu.be/58_UjYmG4hw
1 vote
That's correct and what I thought as well. Basically flip tax and transfer taxes which you can't avoid. You can eliminate the 6% broker fee to sell though.
Flag Tue Nov 29, 2016
The Hauseit article is quite helpful, thanks for sharing. So it seems like the largest closing cost for for co-ops is either the flip tax or transfer taxes depending on your co-op.
Flag Tue Nov 15, 2016
Jennifer Chi…, Agent, New York, NY
Wed Jun 13, 2012
Below all the closing costs are delineated already for you.

Here is a complete list:

http://www.buyandsellmanhattan.com/how-to-manhattan-apts/wha…

I thought it important to note that I am also a licensed part itme working appraiser in Manhattan. This gives my sellers an extra edge that most real estate brokers don't have. I know how to fight a low appraisal and price an apartment correctly for a successful closing.

You can learn more about our broker team at the web referrence listed below. I highly suggest doing your due diligence in the Manhattan real estate broker that you are looking to contract.

If I can be of service to you, please feel free to reach out to me at your convenience.

Jennifer Chiongbian
SVP/ Associate Broker
Rutenberg Realty NYC
9172502284
1 vote
Nissa Kochmer, Agent, New York, NY
Wed Jun 13, 2012
Hi,
Here's a comprehensive breakdown for a co op:
Broker's commission: 6%
Attorney: $1500-$2500 estimated
Co-op attorney/Managing Agent: $400-$600
Stock Transfer Tax: $0.05 per share
Move-out Deposit: Vaires ($500-$1000)
Move-out Fee: $250 and up
NYC Transfer Tax: 1.425% of the sale price, so $11,400.
Transfer Tax Filing Fee: $25-$40
NYS Transfer Tax: 0.4% of the sale price, so $3,200
Bank Attorney: $300
UCC-3 Filing Fee: $75 and up.
Estimated Sub Total (before commission and Stock Transfer Tax): $18,250.
Hope that helps!

If you have any questions, give me a call: 347.344.8307 or email me: nkochmer@citi-habitats.com

Good luck with your sale!
-Nissa
1 vote
Nissa ,
Thanks for a good answer. I am a non resident of NJ and wish to sell a co-op shares in JC. what will be my costs in JC? and do I have to pay income taxes in NJ as well as Ohio? Thanks

k
Flag Mon Oct 12, 2015
Christopher…, Agent, Tarrytown, NY
Wed Jun 13, 2012
Hi, NYC has a 1% of the purchase price transfer tax plus the NY state transfer tax of $4 per every thousand of the transaction. You'll also have an attorney fee.

Chris
1 vote
Anna M Brocco, Agent, Williston Park, NY
Wed Jun 13, 2012
Ask your attorney for a good faith estimate; generally one can expect NYS transfer tax, NYC property transfer tax, attorney fees, any move out fees associated with the co-op, etc.
1 vote
Andrew Simmo…, Agent, New York, NY
Mon Oct 10, 2016
Co-op attorney/Managing Agent: $400-$600Stock Transfer Tax: $0.05 per shareMove-out Deposit: Vaires ($500-$1000)
0 votes
Jacques Ambr…, Agent, Forest Hills, NY
Wed Jun 13, 2012
Co-op Attorney: $450+

Flip Tax: if applicable

Stock Transfer Tax: $0.05 per share

Move-out Deposit/Fee: Varies by building

NYC Transfer tax $500,000+ = 1.425%

NY State Transfer Tax: $4 per $1,000 of price

Payoff Fee: $250-$500

UCC-3 Filing Fee: $100

Miscellaneous Coop Charges: Vary by building
0 votes
Coffy Bailey, Agent, New York, NY
Wed Jun 13, 2012
Hi,

NYS transfer taxes, property taxes and Atty fees are part of the closing fees.

I would be more than happy to assist you with the selling of your coop.

Coffy Bailey
Call me at 646-773-8347
Exit Realty Power
0 votes
Paul Macapag…, Agent, NY, NY
Wed Jun 13, 2012
Please click on the link below. It will explain the closing cost involved with the sale of the property. Hope this helps.


Paul Macapagal
Associate Broker
Town Residential
paul.macapagal@townrealestate.com
917 612 2746
0 votes
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