how much are buyer closing costs in new york city we'll demystify this topic and
tell you how you can reduce them in the following video i'm Nick at Hauseit visit
our website hauseit.com to learn how to save money if you are looking to buy
sell or rent real estate here in new york city so let's get started
so how much are buyer closing costs in new york city well buyer closing costs
range from one and a half to six percent buyer closing costs are going to be the
highest for new development properties such as your typical new development
condo in new york city that's when you're going to get a closing cost
figure closer to six percent now buyer closing costs are going to be
the lowest for co-op apartments and we'll explain why shortly
meaning that your typical buyer closing cost bill is going to be a little bit
higher for condos compared to co-ops and as we've previously mentioned new
development condos new development properties you're going to pay the
highest closing costs out of any of the property types here in new york city
closing costs also do vary based on the price point as well explained shortly
so the largest buyer closing costs consists of the
mortgage recording tax as well as the mansion tax
the mortgage recording tax is 1.8 to 1.925
of your loan size and the mansion tax ranges from one
percent to 3.9 of your purchase price depending on the
notional or price point of the home that you are buying
the more expensive the property is the higher tax bracket you will have to pay
for the mansion tax other large closing costs include title
insurance for condos and houses as well as real estate attorney fees as well as
fees associated with obtaining a mortgage
so if you are looking for a detailed estimate of your buyer closing costs in
new york city visit our website household.com we have two interactive
and free calculators that you can use we have our buyer closing cost calculator
go ahead and use this one if you're buying something that is not a new
development so if you're just buying a typical townhouse condo co-op anywhere
in the city that's the calculator to use the link is below in the description
and if you are looking to buy a new development we have an even more
detailed buyer closing cost calculator which you can utilize which goes into
all of the specifics with respect to the nuanced additional closing costs
associated with a new development so again the link for that calculator as
well is in the description below now on to the most exciting part of the
video where we tell you actually how you can reduce your buyer closing costs here
in new york city and if you're watching this video right now you're very
fortunate because i would say
more than 90 of buyers have absolutely no idea that the strategy that we're
about to tell you exists and many times buyers
only hear about it they might only be watching this video after they've
already closed which point it's already too late
so the easiest way to reduce your buyer closing costs in new york city is by
receiving what's called a buyer agent commission rebate from your buyer's
agent a buyer agent commission rebate is when
your buyer's agent receives a commission from the seller and instead of keeping
the entire commission actually gives you back some portion of that upon closing
so if you think for your typical new development condo say in gramercy
you're talking about a five million dollar property with a buyer agent
commission of three percent that is a $150,000 commission that the developer is
paying to the buyer's agent now with a house that buyer closing credit for
example which is our version of a buyer agent commission rebate in new york city
of that $150,000 we would give you back a hundred
thousand dollars in the form of a credit at closing or a check post closing so
think about the dollar terms that we've just discussed a hundred thousand
dollars is going to buy you an extremely nice car it can buy you a large house in
most of america and it could potentially pay for your
living expenses for a very very long period of time depending on your
lifestyle the point is you don't want to pass on a hundred thousand dollars or
miss out so in order to save money you need to work
with a buyer's agent who will offer you a buyer agent commission rebate
we make that very easy at Hauseit through our buyer closing credit program
we'll connect you with an agent who's already agreed to offer you up to two
percent or more of the purchase price back upon closing you don't have to
negotiate or haggle over it and you still receive the same traditional full
service experience that you would hopefully and rightfully
expect particularly if you're buying a very expensive luxury new development
condo or a pricey brownstone in the city so please do reach out if you are
interested hauseit.com or send us an email team@hauseit.com
we can save you a tremendous amount of money on your purchase and
we'd love to assist finally before we let you go we also do want to mention
two things number one commission rebates buyer
agent commission rebates are completely legal in new york and dozens of other
states so you have no worries on that front
secondly the IRS generally considers rebates to
be non-taxable now we're not a tax professional so we cannot give you firm
advice here but in general buyer agent commission rebates are generally
considered to be non-taxable and so if you use for example the Hauseit buyer
closing credit service the buyer's agent will not report
the closing gift or rebate to the irs so there's no expectation that you would
receive any form of 1099 for the money that you receive so
huge amount of money great way to reduce your buyer closing costs thanks again
for watching we really appreciate it leave us a comment below if you have any
questions i'm Nick at Hauseit and we'll see you on the next video