Selling a property in New York City isn’t just about agreeing on a price; it’s also about understanding the substantial costs you’ll incur at closing. Beyond the broker’s commission, sellers typically pay New York State and City transfer taxes (combined roughly 1.825% on sales under $3M, higher above that), attorney’s fees, and any outstanding common charges or real estate taxes prorated at closing. If you’re selling in a co-op or condo, you may also face a flip tax or transfer fee imposed by the building itself—these range widely, from a flat fee to several percentage points of the sale price, depending on the building’s policy. Some buildings also charge move-out or administrative fees at closing. These costs can meaningfully impact your net proceeds and, if overlooked, can surprise you late in the process. That’s why it’s critical to review your building’s offering plan, house rules, or proprietary lease in advance. Working with a seasoned NYC broker, we’ll run a seller net sheet up front so you’re clear on exactly what you’ll walk away with at closing.
Q&A
Q: What are New York State and City transfer taxes?
A: Combined, they’re generally 1.825% of the sale price under $3M, and higher above that. They’re due from the seller at closing on condos and co-ops (with rare exceptions).
Q: What is a flip tax?
A: A fee charged by a co-op or condo on resale. It can be a percentage of the sale price, a per-share fee, or a flat amount. It’s designed to bolster the building’s reserves or offset operating costs.
Q: How can I find out my building’s flip tax or transfer fees?
A: Check your proprietary lease, condo bylaws, or ask your managing agent. Each building’s policy is different and not always publicized.
Q: Are there any other fees sellers should expect?
A: Move-out deposits, building admin fees, lien search fees, and unpaid assessments are common. Also consider capital gains taxes and attorney’s fees.
Q: How can I avoid surprises?
A: Have your broker prepare a seller net sheet early and request a statement from your managing agent outlining all building-imposed fees. This allows you to price and negotiate with full clarity.
