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Condo Closing Cost Comparison: New Construction vs. Resale

Understanding closing costs is essential for any condo buyer in New York City. The total cost of purchasing a condo extends well beyond the purchase price, and the closing cost structure differs significantly depending on whether you are buying a new construction unit from a sponsor or a resale unit from an individual owner.

Buyer Closing Costs: New Construction Condo

ItemEstimated Cost
Attorney Fee$2,000 - $3,500
Title Insurance (Owner's + Lender's)Varies by purchase price
Title Search & Recording$800 - $1,500
Mortgage Recording Tax1.8% (under $500K) / 1.925% ($500K+)
Mansion Tax1%+ (purchases $1M+)
NYC Transfer Tax (paid by buyer)*1% (under $500K) / 1.425% ($500K+)
NYS Transfer Tax (paid by buyer)*0.4% / 0.65% ($3M+)
Sponsor's Attorney Fee*$2,000 - $3,000
Working Capital Fund2 months of common charges

* In new construction, sponsors often shift transfer taxes and their attorney fees to the buyer.

Buyer Closing Costs: Resale Condo

ItemEstimated Cost
Attorney Fee$2,000 - $3,500
Title Insurance (Owner's + Lender's)Varies by purchase price
Title Search & Recording$800 - $1,500
Mortgage Recording Tax1.8% (under $500K) / 1.925% ($500K+)
Mansion Tax1%+ (purchases $1M+)

In a resale transaction, the seller typically pays the NYC and NYS transfer taxes.

Key Differences

  • Transfer taxes: In new construction, buyers often pay both the city and state transfer taxes. In resale, sellers pay.
  • Sponsor's attorney fee: Only applies to new construction purchases.
  • Working capital fund: Required in new construction; not applicable in resale.
  • Total difference: New construction closing costs can be 3-5% higher than resale for the buyer.

Important Notes

These are general estimates. Actual closing costs vary based on purchase price, financing terms, and the specific terms of the purchase agreement or offering plan. Always consult with your attorney for a personalized closing cost estimate.

Contact Huang & Associates, P.C. for a detailed closing cost estimate for your condo purchase.