What New York City Home Sellers Need to Know About Closing Costs

What New York City Home Sellers Need to Know About Closing Costs

Each step in the process of selling your home on the traditional market comes with a cost. Then, after all of the anticipation, you have finally sold your home, and the new focus becomes the complex closing process wherein the title on the home transfers to the new owners. So often, sellers’ purchase of their next home depends on the proceeds from the sale, and unforeseen hurdles at the closing soon create a nightmarish flurry of problems and more cumbersome paperwork. 

The process can be overwhelming to first-time sellers; being caught off guard at closing is more than unpleasant. Deductions made from the proceeds of a traditional real estate transaction can quickly dwindle the amount of cash you’ll have in hand when you walk away from the closing table. For sellers, closing costs can add up to eight to ten percent of the proceeds or more. Therefore, sellers must be aware of the expenses associated with this process to walk into the closing with realistic expectations. We will explore what New York City home sellers need to know about the closing costs. 

Mortgage Balance

New York City home sellers need to know about prepayment penalties on the mortgage or equity loan payoffs in the closing costs. It’s possible to lose money on the sale after paying exorbitant penalty fees. However, in the best-case scenario, your final sales price pays off the balances on any loans and leaves you with a profit. 

Commissions and Fees

Real estate agents charge New York City home sellers a commission for their services, paid at the closing. Sellers also pay the agents commissions for the buyers from the proceeds of the sale. The typical amount is six percent of the home’s final sales price, divided between your real estate agent and the agent for the buyers. Often, the buyers and sellers split the escrow fees depending upon the terms of the contract.

Taxes and Document Fees

Naturally, sellers must pay any taxes still due on the property in full before the title transfers and the document recorded, for which sellers will pay a fee at closing. Thus, transfer taxes are another closing cost New York City home sellers will pay when the title transfers to the buyer. 

Title Insurance

New York City home sellers need to know about the title insurance, protecting the buyers from possible title defects, typically paid from the sellers closing costs for the buyers. 

Legal Fees

Often New York City, home sellers hire attorneys to represent their interest at closing and need to know these attorney fees may be part of the closing costs.

Other Expenses

These costs, while not taken from the proceeds directly, should still be considered. In addition, you may need to consider any effect the sale may have on your income taxes and any capital gains. These include the title company, which may charge fees, depending upon the services they provide. Additional expenses that New York City home sellers should be aware of are the remaining balance of any existing liens or judgments against the property, any homeowner association fees that may be due as well as prorated property taxes. In addition, sellers must complete any agreements for repairs or any other improvements in the sales contract as out-of-pocket expenses before closing. If you sweetened the deal by offering to pay the buyers closing costs, these would also come out of the final proceeds. Finally, sellers must have also paid any other service providers involved in the transaction at this time.

Triboro Property Solutions

Pay no closings costs! Working with a direct buyer from Triboro Property Solutions is an alternative that makes it easy for New York City home sellers to save the closing costs for themselves and avoid the hassles of traditional closings. At Triboro Property Solutions, our direct buyers will take the time to outline your profits on the sale through a traditional real estate listing so you can compare realistic numbers against our fair offer for your home as-is. Decide for yourself if a direct sale for cash to Triboro Property Solutions is best for your situation. At Triboro Property Solutions, we don’t charge commissions, and no hidden fees are coming off the top of your profits. With simple contracts and no wire transfers to worry about with Triboro Property Solutions, your guaranteed closing can be in a matter of a few days. Relax, if your new home isn’t ready, Triboro Property Solutions has the flexibility to set the closing for a convenient date. Without all of the complications, making a direct sale to Triboro Property Solutions means you don’t need to worry about prepping, repairing, staging, marketing expenses, or even a final cleaning; just move what you want in your new home and leave the rest to us. At Triboro Property Solutions, our direct buyers have years of experience with many unique circumstances at play; they are happy to answer any questions or concerns you have about the process, with absolutely no obligation. Call Triboro Property Solutions at (877) 411-4OWN (877-411-4696) or send us a message to learn more.

Jonathan Ettricks

Combining a sincere dedication to service with his deep love for New York City, Jonathan Ettricks consistently exceeds his clients' unique goals whether they are buying, selling or investing. He offers a consultative, hands-on approach and more than 10 years' experience, which means that each client feels understood, educated and empowered throughout their real estate journey. Regardless of budget or need, everyone receives Jonathan's signature level of service, professionalism and respect. Jonathan knows that trust is a foundational element of a successful transaction, and he earns his customer's faith with his unwavering honesty and integrity. Clients also benefit from his elite communication and organizational skills, and from his lifelong familiarity with the city's many neighborhoods and enclaves. Above all else, Jonathan aims to simplify the ever-changing and complex market with straightforward guidance and benevolent support. Jonathan's commitment to serving others was forged during his parochial school education and his subsequent 20 years in public service, including a long stint working for The New York City Council. Jonathan earned his bachelor's degree from Saint Francis College and his J.D. from Hofstra University.

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