What Are Closing Costs When Buying in NYC?
Quick Answer: How much should NYC buyers budget for closing costs? In most cases, plan for roughly 2 to 5 percent of the purchase price on top of your down payment, though the exact figure depends on whether you're buying a condo or a co-op and whether the price crosses the $1 million mansion tax threshold. Condos typically carry higher closing costs than co ops because of mortgage recording tax and title insurance, which co-ops usually avoid.
General guidance below reflects standard NYC practice as of June 2026 and is not legal or tax advice.
The Short Version
A recent Blatman Team video broke down the closing costs that catch NYC buyers off guard. The three that matter most are the mansion tax on purchases of $1 million and up, the mortgage recording tax and title insurance on condos, and the attorney and building fees that apply to nearly every deal. Understanding these before you make an offer keeps your budget realistic and avoids a surprise at the closing table.
What Actually Goes Into NYC Closing Costs?
• Mansion tax: applies to purchases of $1,000,000 or more, starting at
1 percent and rising with price. On a $1.5 million apartment, that alone is $15,000 or more.
• Mortgage recording tax: applies to condos and townhouses that are financed, not to co-ops, and is one of the largest single line items when it applies.
• Title insurance: typically required for condos and houses, generally not for co-ops.
• Attorney fees: nearly every NYC buyer uses a real estate attorney, a cost co-op and condo buyers both share.
• Building and application fees: move-in deposits, application fees, and, for co-ops, a possible flip tax, though the flip tax is often paid by the seller.
Why Do Condos Cost More to Close Than Co-ops?
This surprises many first-time buyers. Even though co-ops require a more demanding board approval process, they usually cost less to close, because buying a co-op means buying shares in a corporation rather than real property. That structure means no mortgage recording tax and, in most cases, no title insurance, two of the largest condo closing costs. Condos offer more flexibility and fewer board restrictions, but that flexibility comes with a higher closing cost bill.
How the Mansion Tax Changes the Math
The mansion tax is worth planning for carefully because it steps up at price thresholds. A purchase at $999,000 pays no mansion tax, while a purchase at $1,000,000 triggers it, so buyers negotiating near that line should understand how a small price difference can create a meaningful tax difference. You can review the current structure directly through the New York State Department of Taxation and Finance before you finalize an offer, and your attorney can confirm exactly how it applies to your purchase.
A Financial Callout: Budget Closing Costs Before You Make an Offer
The most common closing-cost mistake is treating these fees as an
afterthought. Because closing costs can add tens of thousands of dollars on top of the down payment, they directly affect how much home you can actually afford, and for co-op buyers, they factor into the post-closing liquidity a board wants to see. Build a realistic closing-cost estimate into your budget before you start making offers, not after your bid is accepted.
Watch the Full Breakdown
You can watch our short breakdown of these costs on the Blatman Team Instagram. If it raised questions about your own purchase, you can see how we guide buyers through a NYC purchase, browse active listings to compare condo and co-op options, follow current NYC real estate market trends, and learn how Daniel Blatman's NYC real estate expertise helps buyers plan a purchase from offer through closing.