NYC Seller Closing Costs: What to Expect When Selling Your Apartment

Selling an apartment in New York City is not just about the sale price. Between broker commissions, transfer taxes, flip taxes, and attorney fees, seller closing costs in NYC can consume eight to ten percent of your sale price before you receive a single dollar of proceeds. For a seller closing on a one-million-dollar apartment, that means eighty thousand to one hundred thousand dollars in costs coming directly off the top.

Understanding seller closing costs before listing (for buyer costs, see our buyer closing costs guide) your property allows you to set realistic price expectations, negotiate effectively, and avoid unpleasant surprises at the closing table. This guide breaks down every seller closing cost in New York City. You can also use our free seller closing cost calculator for a personalized estimate, explains how costs differ between co-ops and condos, and provides practical strategies for maximizing your net proceeds.

Total Seller Closing Costs at a Glance

Closing Cost	Typical Amount	Paid By
Broker commission	5% to 6% of sale price	Seller
NYC transfer tax	1% (under $500K) / 1.425% ($500K+)	Seller
NYS transfer tax	0.4% (under $3M) / 0.65% ($3M+)	Seller
Attorney fees	$2,000 to $4,000	Seller
Flip tax (co-ops)	1% to 3% of sale price	Varies
Managing agent / co-op attorney fee	$500 to $1,500	Seller
Move-out deposit / fee	$500 to $2,000	Seller
Mortgage payoff and satisfaction	Varies	Seller
UCC-3 filing (co-ops)	~$100 to $200	Seller

Real Estate Broker Commissions

The largest closing cost for sellers in NYC is typically the real estate broker commission, which has traditionally been approximately six percent of the sale price split between the listing agent and the buyer's agent. On a one-million-dollar sale, that amounts to sixty thousand dollars. On a two-million-dollar sale, one hundred twenty thousand dollars.

It is important to understand that broker commissions in New York City are always negotiable. There is no law or regulation that sets a fixed commission rate. Many sellers negotiate commissions down to five percent or even lower, particularly for higher-priced properties. Additionally, following changes to industry practices beginning in 2024, the structure of how commissions are offered and paid has been evolving. Sellers now make a separate compensation offer to the buyer's broker, and some sellers are opting to offer lower commission rates on the buy side.

Some sellers choose to sell without a broker to eliminate this cost entirely. While this approach can save a significant amount of money, it requires the seller to handle marketing, showings, negotiations, and coordination of the board process or closing themselves. Flat-fee listing services and limited-service brokers offer a middle ground between full-service representation and selling entirely on your own.

NYC and New York State Transfer Taxes

Sellers in New York City are responsible for paying both city and state transfer taxes when closing on the sale of their property. These taxes apply to co-ops, condos, townhouses, and all other residential sales.

The New York City transfer tax rate is one percent of the sale price for properties sold for five hundred thousand dollars or less, and 1.425 percent for properties sold for more than five hundred thousand dollars. For commercial properties and residential properties with four or more units, higher rates may apply. The New York State transfer tax is 0.4 percent of the sale price for transactions under three million dollars. For residential transactions of three million dollars or more, an additional supplemental transfer tax of 0.25 percent applies, bringing the state rate to 0.65 percent.

The combined transfer tax on a one-million-dollar sale would be approximately eighteen thousand two hundred fifty dollars. On a two-million-dollar sale, approximately thirty-six thousand five hundred dollars. These are significant costs that must be factored into your net proceeds calculation.

Co-op Flip Tax

If you are selling a co-op apartment in NYC, your building may impose a flip tax, also called a transfer fee. Despite the name, a flip tax is not a government tax. It is a fee charged by the cooperative corporation to the seller, the buyer, or sometimes split between both parties, as determined by the co-op's proprietary lease and bylaws.

Flip tax structures vary widely among NYC co-op buildings. The most common structures include a percentage of the sale price, typically one to three percent. Some co-ops calculate the flip tax as a percentage of the seller's profit or net gain on the sale. Others charge a fixed dollar amount per share owned by the seller. In some buildings, the flip tax is a flat fee regardless of the sale price.

Flip tax revenue goes directly to the cooperative corporation and is typically used to fund capital improvements, build the building's reserve fund, or reduce the financial burden on existing shareholders. Before listing your co-op for sale, it is essential to review your building's proprietary lease and house rules to determine the exact flip tax structure and amount so you can accurately estimate your net proceeds.

Attorney Fees for Sellers

Just as buyers are represented by an attorney in NYC real estate transactions, sellers also need legal representation. The seller's attorney prepares or reviews the contract of sale, negotiates terms on behalf of the seller, coordinates with the buyer's attorney and the title company, prepares transfer tax returns, and attends the closing.

Seller attorney fees in NYC typically range from two thousand to four thousand dollars for a standard residential transaction. The fee may be higher for more complex transactions involving multiple units, commercial elements, or unusual legal issues. As with buyer attorney fees, most seller attorneys charge a flat fee that is paid at or near closing.

Mortgage Payoff Costs

If you have an outstanding mortgage on your property, the balance will be paid off from the sale proceeds at closing. In addition to the remaining principal balance, there are several costs associated with the mortgage payoff. These include any accrued interest through the closing date, a mortgage satisfaction or discharge fee charged by the lender (typically two hundred to five hundred dollars), recording fees for the mortgage satisfaction, and potentially a prepayment penalty if your mortgage agreement includes one.

For co-op sellers, the lender will file a UCC-3 termination statement to release the security interest in your shares and proprietary lease. This filing fee is typically one hundred to two hundred dollars. It is important to order a payoff letter from your lender well in advance of closing to ensure the exact payoff amount is available for the closing statement preparation.

Building-Specific Seller Costs

Both co-op and condo buildings charge various fees to sellers in connection with the sale. These building-specific costs typically include the managing agent fee for processing the sale and transfer of records, the co-op or condo attorney fee for reviewing the transaction documents, the move-out deposit which may be refundable if no damage occurs during move-out, a move-out fee which is non-refundable, and any outstanding maintenance, common charges, or assessments that must be paid current through closing.

These fees vary by building but collectively can add one thousand to three thousand dollars or more to your closing costs. Review your building's transfer requirements early in the process so there are no surprises.

Seller Closing Costs: Co-op vs. Condo Comparison

While many closing costs apply to both co-op and condo sales, there are meaningful differences between the two property types that affect a seller's total costs and net proceeds.

Co-op sellers face unique costs that condo sellers do not, including the flip tax, which can range from one to three percent of the sale price depending on the building's governing documents. Co-op sellers also pay UCC-3 filing fees to terminate the lender's security interest in the shares, and may face higher managing agent or co-op attorney fees for processing the transfer. However, co-op transactions are generally simpler in that they do not involve deed recording, title insurance, or the same level of title-related documentation required for condo closings.

Condo sellers avoid the flip tax but face different transaction costs. There is no flip tax in a condo sale unless the condo's governing documents specifically impose one, which is uncommon. Condo sellers may need to provide a recorded satisfaction of mortgage, pay for a tax search, and cover any assessments or common charges through the closing date. The condo's managing agent will typically charge a fee for producing documents needed for the sale, including the resale certificate and financial statements.

In terms of total closing costs as a percentage of the sale price, co-op sellers with a flip tax and condo sellers tend to come out roughly similar in the eight to ten percent range when broker commissions are included. Without broker commissions, both typically fall in the two to four percent range, with the co-op flip tax being the primary variable that can push co-op seller costs higher.

Tax Implications of Selling Your NYC Apartment

Beyond the closing costs that come directly off the sale price, sellers must also consider the tax implications of the sale. New York State and New York City both impose income taxes on capital gains realized from the sale of real property. Combined with federal capital gains taxes, the total tax burden on appreciation can be significant. Short-term capital gains, applicable to properties held for less than one year, are taxed at ordinary income rates, which can reach forty percent or more when federal, state, and city taxes are combined. Long-term capital gains for properties held longer than one year receive preferential treatment, but the combined rate can still exceed thirty percent for high-income sellers.

The primary residence exclusion under Section 121 of the Internal Revenue Code allows individuals to exclude up to two hundred fifty thousand dollars of gain, or five hundred thousand dollars for married couples filing jointly, if the property was used as the seller's primary residence for at least two of the five years preceding the sale. This exclusion is one of the most valuable tax benefits available to homeowners and should be carefully considered when timing the sale of your apartment. If your anticipated gain exceeds the exclusion amount, consult with a CPA or tax attorney to explore strategies for minimizing your tax exposure, including installment sales, charitable giving strategies, or reinvestment through a Section 1031 exchange for investment properties.

Capital Gains Tax Considerations

While not technically a closing cost, capital gains taxes are an important consideration for sellers. If you sell your primary residence and have lived in the property for at least two of the last five years, you may be eligible for the primary residence exclusion, which allows individuals to exclude up to two hundred fifty thousand dollars of capital gains from taxation, or five hundred thousand dollars for married couples filing jointly.

If your gains exceed these thresholds, or if the property was not your primary residence, you may owe federal and state capital gains taxes. New York State and New York City also impose their own income taxes on capital gains. The combined federal, state, and city tax rate on capital gains can be substantial. Consult with a tax professional or CPA to understand your specific tax exposure before closing.

Calculating Your Net Proceeds

To understand what you will actually receive from the sale of your NYC apartment, you need to calculate your net proceeds by subtracting all closing costs from the sale price. Here is an example for a co-op sale at one million dollars:

Item	Amount
Sale Price	$1,000,000
Broker Commission (5.5%)	-$55,000
NYC Transfer Tax (1.425%)	-$14,250
NYS Transfer Tax (0.4%)	-$4,000
Co-op Flip Tax (2%)	-$20,000
Attorney Fee	-$3,000
Managing Agent / Building Fees	-$1,500
Move-out Deposit/Fee	-$1,000
Total Closing Costs	-$98,750
Estimated Net Proceeds (before mortgage payoff)	$901,250

In this example, the seller's closing costs represent nearly ten percent of the sale price. After paying off any remaining mortgage balance, the actual cash received by the seller would be even lower.

Strategies to Maximize Net Proceeds

There are several strategies NYC sellers can employ to maximize their net proceeds. Negotiate broker commissions before signing the listing agreement, as even a half-percent reduction on a million-dollar sale saves five thousand dollars. Consider a flat-fee or discount brokerage arrangement if you are comfortable with a more hands-on approach. Time your sale to qualify for the primary residence capital gains exclusion if possible. If selling a condo and the buyer is financing, offer to cooperate on a Purchase CEMA, which can make your property more attractive to buyers and facilitate a faster sale. Finally, work with an experienced real estate attorney who can review the closing statement to ensure all charges are accurate and no unnecessary fees are being assessed.

Frequently Asked Questions

How Agarunov Law Firm Helps NYC Sellers

Agarunov Law Firm represents sellers in co-op, condo, and townhouse transactions throughout New York City and New Jersey. Our attorneys handle every aspect of the seller's legal obligations, from contract preparation and negotiation through closing, including preparing transfer tax returns, coordinating with the buyer's attorney and managing agent, reviewing the closing statement for accuracy, and ensuring a smooth transfer of ownership. Contact us for a free consultation to discuss your sale and understand your estimated net proceeds.