Cost to sell in New York | Realtor commission | How to save | Closing cost calculator | FAQs
The average cost to sell a house in New York is 5.64% of a home’s final sale price, which includes realtor commission (4.97% of the sale price) and seller closing costs (0.7%).
That means it costs New York home sellers an average of $22,843 to sell a home priced at $405,327 (the average New York home price).
Keep in mind that these figures vary widely by market, and you can save big by using an agent-matching service to sell your home. For example, Clever Real Estate has negotiated a reduced listing commission of 1.5% – far lower than the average New York rate of 2.61%.
Here’s a complete breakdown of the costs of selling a house in New York.
Cost of selling a house in New York
|Fee type||Average fee||Average cost|
*Costs assume a sale price of $405,327. Numbers are rounded off and may not be 100% precise.
It’s cheaper to sell a house in New York compared to other states.
The table above shows that it costs 5.64% when factoring in realtor commissions and closing costs. That’s a bit lower than the national average of 6.53%.
Despite these low seller costs in percentage terms, New York’s relatively high home values drive up the average cost of a home sale. (Not sure what your home is worth? Get in touch with a top local agent for a free comparative market analysis.)
So, the cost of selling a New York home in dollar terms is roughly the same as the national average.
|State||Home value||Cost to sell (percent)||Cost to sell (dollars)|
Overall home prices in New York are higher than in most other states in the region but considerably lower than in New Jersey and Massachusetts.
The cost to sell as a percentage of the home price is lower in New York than in most neighboring states. As a result of these factors, New York’s average cost to sell in dollars is lower than in all neighboring states except Pennsylvania and Vermont.
Keep in mind that realtor commission and closing cost figures vary widely by market, so your total home sale costs will also vary. As of June, median home prices ranged from $97,000 in Allegany County to $690,000 in Nassau County, according to the New York State Association of Realtors.
Here’s an example of your potential costs at various price points, including realtor fees and seller closing costs.
|Sale price||Realtor fees (5.40%)||Closing costs (1.6%)||Total cost|
Factors that may impact your New York home sale costs include:
Typical real estate agent commission in your area
While the state-wide average rate is 4.97%, rates may be higher or lower depending on what’s normal in your local market.
Your success in negotiating rates
Realtor fees aren’t fixed — they are completely negotiable. You may be able to negotiate a rate lower than what’s typical in your area.
How you find a realtor
You can potentially save thousands in realtor fees by using an agent-matching service like Clever Real Estate to find a realtor. Clever pre-negotiates a 1.5% listing agent fee with top local agents across the country.
If you need to pay optional costs
The estimated total cost to sell of 5.64% in New York does not include costs like home staging, deep cleaning, and pre-listing repairs, which could add thousands more to your home sale costs.
Your negotiated contract
Closing costs are split between the buyer and seller in New York. Sellers typically pay all realtor fees, survey fees, transfer taxes, and attorney fees.
Buyers take on most of the other expenses including their own attorney fees, inspection costs, appraisal costs, due diligence, owner’s title insurance, and buyer closing costs for their mortgage.
You can negotiate how these costs are split. Depending on the situation, some sellers may offer to cover certain buyer closing costs as an incentive, but this has fallen out of favor in New York’s hot seller’s market in recent years.
“The seller’s concessions at closing have become a very big negative in this market over the last two or three years,” notes Jason Klink, a real estate salesperson for eXp Realty in Syracuse. Klink adds that buyers may still ask for them. “It’s all in how you write the contract.”
But many sellers receive at least half a dozen offers on a home, some of them tens of thousands of dollars over the list price. Those sellers generally have the option of saying no to any buyer who requests concessions.
Here’s a deeper look at your expected home sale costs.
1. New York realtor commission (4.97%)
Using a realtor costs New York home sellers an average of 4.97% of the home’s sale price, paid out at closing. That fee covers both the listing agent and the buyer’s agent commission.
Your actual cost depends on your home’s value, as it costs much less to sell a $300,000 home compared to a $1 million home, for example.
|Sale price||Commission cost in New York|
Since commission is the single largest home-selling expense in New York, it’s also your best cost-saving opportunity.
How to save on New York realtor fees
Here are some tips on how to save money on your home sale.
Use a discount broker
A discount real estate broker is a company that offers sellers a reduced commission fee. The broker’s listing agents charge less than the average rate, such as a 1.5% listing fee vs. the typical 2.5%-3% rate.
Selling at a higher price point leads to even bigger commission savings using a discount broker vs. finding a realtor through traditional sources, like through a personal referral.
For example, Clever offers listing fees of just $3,000 or 1.5%, compared to the average New York listing commission rate of 2.61%. That could save you more than $10,000 on a $400,000 home sale.
Agents from these firms still provide all of the services you’d expect to receive from a traditional realtor, too. The service is free to try with no obligation, so it’s worth starting here.
» MORE: The Best Discount Brokers for Every Budget
List your home without a realtor
You can avoid paying New York listing commission entirely by selling without a realtor. That’d save you 2.61% off of your home sale.
However, studies show that homes sold without a realtor sell for up to 26% less than agent-listed homes, and you’ll be responsible for all of the tasks normally handled by a real estate professional.
“Be ready to give up a lot of time when you decide to sell as an FSBO, from setting up the home and taking the ideal photos to crafting the perfect description and marketing,” notes Nicholas McMillan, a real estate broker and owner of Pleasantville-based Hire Realty LLC.
“Additionally, you’ll have to spend time showing the house, putting up with door-kickers and lookie-loos, and conversing with uninterested agents.”
Many FSBO sellers get overwhelmed quickly and tend to go find a real estate agent after two or three weeks, says Klink.
“Especially if they’re getting request after request to see the home and they start getting multiple offer situations. That’s a lot to manage,” he says.
Negotiate a lower rate
There’s no law setting a fixed realtor fee in the state or any part of the country, which means you can try to negotiate a lower commission rate with New York realtors.
Negotiating commission is more likely to work on a high-value property, since the agent will still earn a substantial commission on the home sale, despite the lower rate.
“An agent can offer to a potential client to list their home for maybe 5%,” compared to the standard 6% combined commission for the buyer’s and sellers’ agent, says Klink. But, he cautions, that agent may put in less effort than one who charges the standard commission.
“For 5%, are they going to market the same, are they even going to create a marketing plan?” he says. “Are they going to take out any Facebook ads, are they going to do photography? Are they doing everything they typically do for the listing for that 5%, or is it reduced?”
» LEARN: How to choose the right listing agent
2. Closing costs for sellers in New York (0.7%)
Seller closing costs typically add another cost of 0.7% or more to the home’s final sale price, according to our data. (Closing costs do not include realtor commission.)
Based on the average New York home value of $405,327, the typical home seller pays $2,699 in closing costs.
Closing costs for sellers in New York typically include attorney fees, survey fees, transfer taxes, recording fees, and prorated property taxes.
Other fees for sellers could include homeowners association (HOA) fees, co-op flip taxes, and mortgage payoff and/or prepayment penalties.
Buyers generally handle the appraisal fee, title search and insurance costs, and attorney fees.
It’s a good idea to hire a real estate attorney to review all of your contracts and legal documents and protect you from potential issues that may arise during the sale. New York State law also requires an attorney to be present at a real estate closing.
Klink recommends that his clients work with a real estate attorney to protect their best interests. “I typically recommend for my clients to make a real estate attorney part of the team that’s in their corner when they purchase the biggest asset they’re ever going to own,” he says.
Real estate attorneys charge an average of $340 per hour in New York, according to legal technology firm Clio.
Attorney fees typically include survey fees. New York law requires home sellers to complete a land survey to clearly define the boundaries of their property.
This cost ranges from $200 to $700 and averages $500, according to Rent Own Sell New York.
» LEARN: Do I Need a Lawyer to Sell My House?
Real estate transfer taxes
The New York State government imposes a real estate transfer tax on every home sale at a rate of $2 per $500, or 0.4%, according to the state’s Department of Taxation and Finance. For example, you’d face a $1,600 transfer tax on a $400,000 home sale.
An additional “mansion tax” of 1% applies to houses where the sale price is $1 million or more. There are further transfer taxes on homes of $2 million or more in New York City.
The real estate transfer tax amounts to a total cost of for the average home sale in New York, our data shows. This is slightly higher than the national average cost of .
If you’re selling a co-op (or sometimes a condo) in New York City, you may also need to pay a “flip tax,” which ranges from 1-3% of the selling price. The fee is charged directly by the co-operative building or condominium, so it varies from property to property.
Home sellers in New York must pay recording fees, charged by county governments to register a property’s change of ownership.
Recording fees are a small part of a seller’s closing costs. The exact fees depend on the county and the number and length of the documents being filed.
For instance, Allegany County charges a deed recording fee of $45 for the first page of the document, plus $3 for each additional page. Our data shows that New York’s average recording fees are less than the national average of $0.
Prorated property taxes
New York home sellers are required to pay property taxes on the days they’ve owned their home in the calendar year. Taxes are prorated and split between the seller and buyer.
The tax is due at closing. Actual costs depend on your annual taxes, and how many days you live in your home up until the closing date.
Speak with your agent or attorney for more details on what you might owe in prorated taxes.
3. Other potential costs
Home preparation costs
Staging can boost your home’s appeal and result in a higher sale price. But it’s relatively expensive in New York, and it doesn’t make sense for every seller.
At the high end, staging a typical Manhattan apartment for six months can set you back $20,000 to $30,000.
More realistically for the average homeowner, Staging Hudson Valley LLC charges the following prices:
- $225 for a staging consultation and report
- $125 per hour for a design consultation
- $425 for a four-hour home staging and redesign session using your existing furnishings
Pricing depends on your local market, the size of your home, and the number of rooms staged. Talk to your realtor for advice on whether or not home staging is right for you.
For deep cleaning, expect to spend at least $300.
Finally, pre-listing home repairs and improvements could add hundreds, if not thousands more to your budget, depending on how much work your home needs.
Homeowners association dues
You may owe homeowners association (HOA) dues if your home is located in an HOA community. Sellers are typically responsible for covering a prorated amount of their annual membership dues at closing.
If the HOA charges fees to transfer homeownership records to the buyer at closing, the seller usually pays them. Costs vary between communities, but they commonly range from $150 – $500. Check with your agent, attorney, or HOA board for more information on what you might owe.
Buyer’s closing costs
Closing costs are negotiable between the seller and the buyer. But buyers requesting sellers to cover any of their costs may have trouble getting their offers accepted in New York’s highly competitive market.
Title search fee
The buyer’s attorney charges this fee to examine the public records, ensure that the title is free and clear, and transfer title ownership to the buyer.
Title searches generally cost several hundred dollars, though fees vary. For example, Bay Shore-based Bedford Abstract charges $350 for a full title search.
Owner’s title insurance
Title insurance protects the owner against any legal claims made against their home or possible mistakes on their deed. It also usually covers the cost of legal fees when defending a claim.
Home buyers in New York often purchase title insurance to eliminate risks associated with title problems, but it’s not required under New York State law. Owner’s title insurance is a one-time fee, usually due at the time of closing.
Owner’s title insurance usually costs around 0.45% of the home’s final sale price in New York.
Many homeowners purchase home warranties to ensure their appliances can be replaced or repaired if something goes wrong, from a blown hot water tank to a broken dishwasher.
The annual premium for a home warranty in New York averages $795 for a single-family home, according to Review Home Warranties. Premiums for townhomes and condos are lower at about $583 and $694, while premiums for multi-family homes average $1,162.
“Your local customs will determine who pays for the home protection plan and home warranty coverage,” says McMillan. “In many places, it is customary for the seller to foot the bill for the insurance because it is a seller’s advantage. If something goes wrong after closing, the buyer won’t contact the seller.”
Klink observes that the New York market has become so “insanely competitive” in the last three years that many buyers have been waiving home inspections, and some of them choose to buy home warranties instead.
“The discussion now is, if you’re going to waive the home inspection to be competitive in this situation, at least take the same or close to the same investment and put it into a home warranty so when you move in, you have a little bit more peace of mind,” he says.
Termite inspection fee
Termites and other infestations aren’t common in New York, but they can happen. If the buyer requests a pest inspection, it can be paid for either by the buyer or the seller or split between the two, depending on how it’s negotiated.
The cost of a termite inspection in New York City ranges from $150 – $220 depending on the size of your house, according to HomeBlue Contractor Network.
Capital gains tax
The IRS offers a tax break on capital gains from the sale of your primary residence, as long as you meet certain requirements:
- Single homeowners can deduct up to $250,000 of gains from the sale of their property;
- Married couples can deduct up to $500,000 of gains.
- You must have occupied the property for at least two of the past five years.
- You can also deduct certain repairs and improvements from your home’s cost basis.
Depending on how long you’ve owned and lived in the house, you could be required to pay capital gains taxes to the state government as well. If your property is located in New York City, you could owe additional capital gains taxes to the city government.
We recommend speaking with a professional tax advisor to learn more about what you owe.
» LEARN: How to avoid capital gains on a home sale
Cost of selling a house in New York calculator
Use our calculator to get a rough estimate of what you might walk away with in your home sale. Change the home sale price and closing costs to fit your particular situation.
Not sure what your home is worth? Contact a realtor for a CMA report.
A local realtor can also provide you with a free seller’s net sheet: a personalized document that estimates how much you may earn in your home sale, factoring in an estimated sale price, realtor commissions, and seller closing costs.
New York closing costs: FAQs
How much are closing costs for sellers in New York?
New York closing costs typically average less than 6% of a home's final sale price. That figure includes realtor commission fees, which often cost sellers around 5%, and common closing costs, such as attorney fees, survey fees, and transfer taxes.
We break down the best ways to save on New York realtor fees.
Who pays closing costs in New York?
Buyers and sellers have separate closing costs in New York. Prorated property taxes are split between both parties. Sellers are usually responsible for paying all commissions, their own attorney fees, transfer taxes, survey fees, and recording fees.
However, actual costs depend on your location. We recommend you find a realtor to get a seller's net sheet, which breaks down all of your potential home sale costs.
Do buyers or sellers pay realtor fees in New York?
Sellers usually cover both the buyer's agent and seller's agent commission in New York, which amounts to around 5% of the home's final sale price. Real estate commission will likely be your single largest home-selling cost. Fortunately, it's negotiable.
What is the cheapest way to sell a house in New York?
The cheapest way to sell a house is to use an agent matching service like Clever Real Estate, which has pre-negotiated a low listing agent fee with its agents. Clever agents charge a 1.5% listing fee on homes over $350,000, compared to the national average listing fee of 2.80%. That could save New Jersey home sellers thousands in realtor fees.
The True Costs of Selling a Home Revealed: What does it truly cost to sell a house in the U.S., and how does New York compare to other states? We explore all of the common expenses in a home sale, and how you can save thousands.
9 Steps to Selling a House Fast in New York in 2022: Selling your home in the Empire State doesn’t have to be overwhelming. Experts weigh in on the entire process from choosing an agent through closing.
How to Find a Realtor: Find out how you can connect with a great real estate agent. We help you zero in on the best approach, whether you’re selling or buying.
Seller Net Sheet Guide: Learn how a net sheet can help you estimate your potential home sale proceeds, and how to get one for free.
Negotiating Realtor Commission: Knocking your real estate commission down just one percentage point could save you a ton of money on your home sale.
Leave a Reply