How much does a real estate closing cost?

Expenses vary depending on whether you are the seller or the purchaser and also on the complexity of the transaction, type of real estate and whether financing is involved. A flat fee is often quoted for a straightforward transaction, but an hourly rate may be used if complications are likely to arise. At closing, the seller will pay a New York State transfer tax, and depending on location of the property, a county transfer tax. The seller also pays the real estate broker’s commission, as well as the balance of any existing mortgages or other liens affecting the property. The purchaser will pay the cost of recording the new deed and mortgage, the New York State mortgage tax (generally 1% of the amount of the mortgage), and bank fees associated with the mortgage. We review all of these expenses with the client early on in the transaction to ensure that he or she knows what to expect for total closing costs.