Buying a home in Midtown East is exciting, but the line item that surprises many buyers is closing costs. Even seasoned New Yorkers can find the mix of city, state, and building fees confusing. You should know what you will owe, when it is due, and how it changes by property type. This guide breaks down the typical costs for condos, co-ops, and townhouses so you can plan with confidence. Let’s dive in.
What Midtown East closing costs include
Closing costs are the cash you pay at or before closing on top of your down payment. They include taxes and government charges, lender and title fees, your attorney, and building or co-op specific fees. You should also plan for immediate post-closing costs like property taxes, common charges, insurance, and your first mortgage payment. Local practice matters, so confirm details for your exact deal with your lender and attorney.
Key taxes and government charges
The mansion tax applies to residential purchases of 1,000,000 dollars or more. The historical base rate starts at 1 percent of the purchase price for 1,000,000 dollars and up, and brackets can change. Confirm your exact rate with your attorney or the tax authorities.
If you finance, New York City imposes a mortgage recording tax on the mortgage amount. This is a material cost for many Midtown East buyers and can total thousands to tens of thousands depending on loan size and current rules. Your lender will estimate it early and confirm it again before closing.
State and city real property transfer taxes are commonly paid by the seller in most NYC residential deals. There can be exceptions based on negotiation or non-standard structures, so check your contract.
Lender costs when you finance
If you are getting a loan, expect the following:
- Loan origination, underwriting, and processing fees. These vary by lender and can be a flat fee or a percentage of the loan.
- Appraisal fee, typically paid upfront by you.
- Credit report and flood determination fees.
- Prepaid interest and escrow deposits for taxes and insurance that depend on your closing date.
- Lender’s title insurance policy, which lenders require. Rates are set by regulated tables and depend on your loan amount.
Title, attorney, and settlement
New York closings typically involve attorneys. As a buyer, you hire your own counsel. You will also see:
- Buyer’s attorney fee. This varies by complexity and building type.
- Title search and title insurance. A lender policy is required if you finance. An owner’s policy is optional but commonly recommended.
- Settlement, recording, and courier fees.
Building-specific fees in Midtown East
Condominiums
You receive a deed, so recording and title insurance apply. Mortgage recording tax applies if you finance, and you will typically pay the mansion tax if your purchase is 1,000,000 dollars or more. Some buildings charge a capital contribution or move-in deposits.
Co-ops
You purchase shares and a proprietary lease rather than real property. Co-ops avoid certain deed recording taxes, but they add administrative costs. Expect a board application fee, move deposits, and possible reserve requirements. Some co-ops impose flip taxes, which are usually a seller obligation but can be negotiated.
Townhouses
These follow a deed transfer like condos, with title insurance and recording fees. Surveys and full inspections are more common and advisable.
Typical cost ranges in Midtown East
Use these ranges as a planning tool and ask your team for an itemized estimate for your transaction.
- Condos (financed): about 2 percent to 4 percent of the purchase price in closing costs, excluding your down payment. The mortgage recording tax and title insurance drive much of the total.
- Co-ops: about 1 percent to 3 percent. You avoid certain recording taxes but will see board and move fees. Some buildings require cash reserves.
- Townhouses: about 2 percent to 4 percent, plus surveys and inspections.
Common line items:
- Buyer’s attorney: 1,500 to 6,000 dollars.
- Title insurance and searches: several hundred to several thousand dollars based on price and loan amount.
- Mortgage recording tax: a percentage of the loan amount that can reach thousands to tens of thousands on typical Midtown East mortgages.
- Appraisal: 400 to 1,500 dollars.
- Survey (if needed): 500 to 2,000 dollars, higher for townhouses.
- Co-op application and move fees: 100 to 2,000+ dollars for applications; 250 to 5,000 dollars for move deposits, often refundable.
- Escrows for taxes and insurance: often several months, which can be several thousand dollars.
- Recording, courier, and administrative fees: 100 to 1,000 dollars combined.
- Lender fees or points: roughly 0.25 percent to 1 percent of the loan plus flat fees.
Illustrative examples
These scenarios are for orientation only. Your final numbers depend on current tax rules, lender terms, building fees, and your contract.
Example A — Condo purchase at 1,500,000 dollars with 20 percent down (loan 1,200,000 dollars):
- Mansion tax: about 1 percent of 1,500,000 dollars, or 15,000 dollars (confirm current brackets).
- Mortgage recording tax: several thousand to 20,000+ dollars depending on current NYC rates.
- Attorney, title, lender charges, appraisal, and prepaids: 7,000 to 20,000 dollars, aggregate.
- Estimated total closing costs: roughly 30,000 to 60,000 dollars, about 2 percent to 4 percent of price.
Example B — Co-op purchase at 750,000 dollars with 30 percent down (loan 525,000 dollars):
- No mansion tax since the price is under 1,000,000 dollars.
- Co-op application, board fees, attorney, lender fees, and prepaids: about 5,000 to 20,000 dollars, or 1 percent to 3 percent of price.
- Final amount varies by building rules and negotiations.
When costs are due
Most fees are paid at closing and shown on your closing disclosure. Some costs are due earlier:
- Appraisal and credit report fees are usually paid upfront.
- Co-op and condo application fees, move deposits, and board package costs are often paid during the approval process.
- Prepaids and escrows are collected at closing and depend on your closing date.
Who typically pays what
Local customs guide who covers each item. Your contract is the final word.
- Buyer typically pays: lender fees, mortgage recording tax, buyer’s attorney, appraisal, mansion tax if applicable, title-related costs, and escrow prepaids.
- Seller typically pays: state and city transfer taxes in most residential deals, plus broker commissions.
- Building fees: co-op move fees and application costs are often buyer-paid; flip taxes are commonly seller-paid. Always confirm in bylaws and negotiations.
Ways to manage or reduce costs
You have levers you can use, depending on the market and property.
- Ask for a seller credit toward closing costs. This is negotiable and more common in slower markets.
- Shop your lender for rate and fee structures. Some lender charges can be offset by a higher rate.
- Compare attorneys and title companies for service and fees.
- Review the house rules for required deposits and fees before you sign.
- Note that major taxes like the mansion tax must be paid in cash at closing and cannot be rolled into your loan.
Cash planning checklist
- Get a pre-approval and ask for a detailed fee estimate early.
- Engage a New York real estate attorney to outline title and recording charges for your property type.
- If buying a co-op, review application requirements, board fees, move-in rules, and any reserve requirements.
- Review the contract, offering plan or proprietary lease, building financials, and house rules.
- Ask your lender for a current Loan Estimate and a final closing disclosure before closing.
- Budget for down payment + closing costs + several months of reserves. Some co-ops require documented reserves.
What to ask your team
- Your lender will estimate lender fees, mortgage recording tax, and prepaids.
- Your attorney will estimate title and recording costs and confirm mansion tax.
- Building management will give you co-op or condo transfer, application, and move fee schedules.
- The listing agent can outline customary seller-paid items and negotiation norms.
Your Midtown East advantage
You deserve clarity before you wire funds. If you want a clean, itemized path from accepted offer to closing, our team guides you through the numbers, coordinates with your lender and attorney, and helps you negotiate where it counts. For tailored advice on a specific Midtown East property, connect with Lauren Mitinas-Kelly | Limitless LMK.
FAQs
How much cash do Midtown East buyers need at closing?
- Beyond your down payment, plan for closing costs in the low single-digit percentages for co-ops and about 2 percent to 4 percent for condos, then confirm your final disclosure.
Do condos or co-ops cost more to close in Midtown East?
- Condos usually cost more due to mortgage recording tax and title insurance, while co-ops often have lower taxes but add board and move fees.
Can sellers pay some of my closing costs in New York City?
- Yes, seller credits are negotiable and more common in certain market conditions; sellers typically pay transfer taxes and commissions.
Can I roll closing costs into my mortgage in New York?
- Some lender fees can be financed or offset by a higher rate, but major taxes like the mansion tax must be paid in cash at closing.
When will I know my final closing numbers for a Midtown East purchase?
- Your lender and attorney will provide an updated estimate during diligence and a final closing disclosure before closing, which lists every charge and credit.
