Q & A – New Construction Closing Costs

Question:
I’m looking to buy new construction and I understand that I’ll have to pay more money at the closing. How much more should I be expecting to pay?

- Jerry, Brooklyn, NY

Answer:
Typically, the buyer will be paying the seller’s (builder’s) closing costs when purchasing new construction. On top of the buyer’s closing costs, you will be responsible for NY State Transfer Tax (0.4% of the purchase) and NYC Transfer Tax (1.0 % for up to $500,000; 1.4% over $500,000). So your looking at an additional 1.4% to 1.8% in additional closing costs. There are more costs that are always to be paid at closing. For a more comprehensive list…

I created a separate page that you can access here for NYC Closing Costs.