Buying or selling in the Bronx? Closing costs can surprise even savvy New Yorkers. You want a clear plan, a realistic budget, and no last-minute curveballs. In this guide, you’ll learn what typical buyer and seller costs look like in Bronx County, how NYC and New York State taxes affect your bottom line, and smart ways to prepare your cash to close. Let’s dive in.
What closing costs cover
Closing costs are the one-time expenses you pay at settlement, separate from your down payment. They include lender and title fees, taxes, recording charges, and prorations. In New York City, you also see city and state transfer taxes and a mortgage recording tax when you finance a condo or house.
Your total will vary by property type (co-op, condo, or 1–3 family house), price point, and what your contract says about who pays which items. Many costs are percentage-based, so the dollar impact rises with purchase price.
Buyer costs in the Bronx
As a buyer, you typically cover lender-related fees, title and recording costs, prepaid items, and the mortgage recording tax when you take out a loan on real property.
Lender and loan fees
- Origination, processing, and underwriting fees. These may be flat or a percentage of the loan.
- Appraisal, credit report, and other third-party charges. Appraisals are commonly several hundred dollars.
- Optional mortgage points if you buy down your rate.
Mortgage recording tax
- New York City charges a mortgage recording tax when a mortgage is recorded. This is a material cost in NYC and is based on your mortgage amount.
- Responsibility is typically the buyer’s. Ask your lender for the exact rate for your loan size and confirm with the NYC Department of Finance.
Title and recording
- Owner’s title insurance for condos and 1–3 family homes protects you from covered title defects. Costs follow New York rate schedules and scale with price.
- Lender’s title insurance is usually required when you finance.
- Title search, closing and recording fees apply and are typically modest compared with taxes.
Prepaids and escrows
- Prepaid property taxes, homeowner’s insurance, and initial escrow deposits if required by your lender.
- For condos, you may prepay a portion of common charges as part of your initial escrow.
Attorney, inspection, extras
- In NYC, buyers use a real estate attorney. Plan for fees that can range from several hundred to several thousand dollars.
- Optional inspections and reports, such as a home inspection, pest inspection, or specialized engineering review.
Co-op specific costs
- Co-ops often include application and processing fees, move-in deposits, and elevator reservation fees.
- Some buildings have a flip tax that is often paid by the seller, although this is negotiable.
- Title insurance is different for co-ops since you are purchasing shares and a proprietary lease. Discuss coverage options with your attorney and title company.
Buyer rule of thumb
- For condos and 1–3 family homes, plan for roughly 2% to 5% of the purchase price in closing costs, not counting your down payment. Your exact total depends on your mortgage size, tax rates, and building fees.
Seller costs in the Bronx
Sellers usually cover broker commissions and transfer taxes, along with standard legal and payoff items.
Broker commission
- The largest seller expense. In NYC, total commissions commonly range from about 5% to 6% of the sale price and are negotiable.
Transfer taxes
- New York State Real Estate Transfer Tax is typically 0.4% of the sale price. Contracts govern who pays, though sellers commonly pay.
- NYC Real Property Transfer Tax is a city tax with a progressive rate that depends on price and property type. Sellers usually pay, subject to contract terms.
Payoffs and adjustments
- You must pay off mortgages, home equity lines, and any liens at closing.
- Property taxes and common charges are prorated through the closing date.
Attorney and building fees
- Seller’s attorney fees, payoff statement fees, and any closing agent costs.
- For co-ops, flip taxes and other building-specific fees may apply according to building documents and your contract.
NYC and state taxes to know
NYC and New York State have additional taxes that affect Bronx closings. Your attorney and lender will calculate the exact amounts for your deal.
- Mortgage recording tax. Charged by NYC when a mortgage is recorded on condos and 1–3 family homes. It is based on the mortgage amount and is typically paid by the buyer.
- NYC Real Property Transfer Tax (RPTT). A city transfer tax with rates that vary by price bracket and residential vs commercial classification. It is commonly paid by the seller unless the contract states otherwise.
- New York State Real Estate Transfer Tax (RETT). A state tax, generally 0.4% under current statutory guidance. Allocation can be negotiated, though sellers commonly pay.
- “Mansion tax.” A one-time 1% tax assessed by New York State on residential purchases of 1,000,000 dollars or more. Buyers typically pay, though parties may negotiate.
Always confirm current rate schedules with the NYC Department of Finance and the New York State Department of Taxation and Finance. Your contract will set who pays what.
Co-op vs condo vs house
Property type changes your closing profile in the Bronx.
- Co-ops. Expect board application fees, potential flip taxes, and building-specific charges. Title insurance is not the same as for real property. Some buyers still obtain coverage for lease or assignment risks after consulting their attorney.
- Condos. Treated as real property, which means you will see the mortgage recording tax if you finance, plus standard title insurance and recording fees.
- 1–3 family homes. Similar to condos for title and mortgage recording tax, with inspections and insurance needs that can vary by home condition.
Plan your cash to close
Use this simple checklist to avoid surprises.
- Get preapproved early. Your lender will issue a Loan Estimate within 3 business days of application that outlines lender fees, taxes, and prepaid items.
- Build your worksheet. Include your down payment, estimated buyer closing costs, mortgage recording tax estimate, title insurance, prepaid taxes and insurance, attorney fees, inspections, co-op or condo application fees, and moving costs.
- Add reserves. Some co-op boards require a set number of months of maintenance in reserves. Ask your attorney and agent.
- Watch the timeline. You will receive a Closing Disclosure at least 3 business days before settlement for most mortgages. Expect minor prorations and last-minute adjustments.
- Keep a buffer. Set aside 1% to 2% of the purchase price as a contingency for unexpected items.
Illustrative example
Below is a simplified scenario to show how costs can stack up. Use it only as a learning tool and verify current rates with your lender, attorney, and the NYC Department of Finance.
- Assumptions. Purchase price 600,000 dollars for a Bronx condo, 20% down, 480,000 dollar loan.
- Buyer closing costs. Using a mid-range estimate of about 3% of the price, total buyer costs might be around 18,000 dollars. This could include lender fees, title insurance, recording and escrow charges, attorney fees, an estimated mortgage recording tax, and a small buffer.
- Seller costs. Commission of 6% would be 36,000 dollars, plus state transfer tax at 0.4% and NYC RPTT based on the applicable bracket. The seller’s net would also reflect any mortgage payoff and prorations.
Your actual numbers will differ. Work from your lender’s Loan Estimate and have your attorney confirm all NYC and state taxes that apply to your contract.
Ways to manage costs
- Negotiate credits. You can ask for seller concessions that offset some closing costs, subject to loan program limits.
- Time your purchase. Watch price thresholds that trigger taxes, such as the 1,000,000 dollar mansion tax level in New York.
- Compare providers. Shop lenders, attorneys, and title companies to understand fee differences.
- Explore programs. State and city programs sometimes offer grants or favorable mortgage terms for eligible first-time buyers. Availability and criteria change, so check current options with the appropriate agencies.
Closing timeline at a glance
- Offer and contract. Your attorney reviews and negotiates contract terms, including who pays which taxes and fees.
- Loan process. Appraisal, underwriting, and issuance of the Loan Estimate and later the Closing Disclosure.
- Board or building approvals. Co-ops require a board package and interview. Condos may require a simple application and move-in scheduling.
- Final walk-through and closing. Expect prorations and last-minute adjustments, then signing and funding.
Ready to take the next step?
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FAQs
Who pays NYC and NY transfer taxes in Bronx sales?
- Allocation is negotiable and governed by the contract; sellers commonly pay the NYC Real Property Transfer Tax and the New York State transfer tax, but the parties can agree otherwise.
How much should a first-time Bronx buyer budget for closing?
- A conservative working range for condos and 1–3 family homes is about 2% to 5% of the purchase price, excluding your down payment.
What is the New York mansion tax and who pays it?
- It is a 1% state tax on residential purchases of 1,000,000 dollars or more; buyers typically pay unless the contract assigns it differently.
Do co-op purchases include title insurance in the Bronx?
- Co-ops are share purchases with a proprietary lease, so title insurance is different; some buyers still purchase coverage for certain risks after consulting their attorney and a title company.
How do I estimate the mortgage recording tax in NYC?
- Ask your lender to calculate it for your loan amount and confirm with the NYC Department of Finance, since the rate depends on the mortgage size and situation.
