How much cash will you need on the Upper West Side beyond your down payment? If you are comparing co-ops, condos, and townhouses, the mix of taxes, lender fees, and building charges can feel confusing. You deserve a clear, local guide that helps you plan with confidence. In this post, you will learn what typical buyer closing costs include, how they differ by property type, and how to estimate your cash to close with simple, illustrative examples. Let’s dive in.
What closing costs include
Closing costs are the non-purchase-price charges you pay at or before closing. In New York City, they often include:
- Government taxes and recording fees
- Lender fees, points, appraisal, and escrows
- Title insurance and attorney fees
- Building and co-op charges
- Inspections and other due diligence costs
- Adjustments and prorations for taxes and common charges
Property type matters on the UWS
- Co-ops: You buy shares, not real property. There is no owner’s title insurance. Expect a board application, potential move-in fees, and timing tied to board approval. Some buildings have a flip tax, which is usually a seller cost but can be negotiated.
- Condos: You buy real property. Title insurance is typical, and if you finance, the lender will require a lender’s policy. City and state transfer taxes are generally seller costs, while you plan for mansion tax if the price is eligible.
- Townhouses: Treated as real property like condos. Title insurance, mansion tax at eligible price points, and mortgage recording tax if you finance.
On the Upper West Side, many homes trade above the $1 million threshold, so the mansion tax often applies. Many buyers also finance, which brings the mortgage recording tax into view for condos and townhouses.
Taxes you may pay
- Mansion tax: A New York State tax that applies to residential purchases at $1,000,000 and above. Rates are progressive by price bracket. The base example many buyers use is 1 percent at $1,000,000. Always confirm the current bracket for your price point.
- Mortgage recording tax: A tax on the recorded mortgage for real property in NYC. If you are financing a condo or townhouse, plan for this tax. Co-op loans are not recorded the same way, so this tax does not apply to co-op buyers.
- Transfer taxes: New York City and New York State transfer taxes generally apply to real property and are often paid by the seller for condo and townhouse resales. Your attorney will confirm who pays per your contract.
Illustrative example: On a $1,200,000 condo, a 1 percent mansion tax would be $12,000. Confirm your exact rate with your attorney or lender.
Lender fees and prepaids
If you are financing, expect several lender-related charges:
- Origination, processing, and underwriting fees: Often a flat fee or a small percentage of the loan amount
- Points to buy down your rate: Optional, and quoted as a percent of the loan amount
- Appraisal: Often several hundred to around one thousand dollars depending on complexity
- Credit, flood, tax service fees: Smaller line items that add up
- Prepaid escrows: Several months of property taxes and homeowner’s insurance are commonly collected at closing
- PMI: If your down payment is under 20 percent, private mortgage insurance may apply. Your lender will outline options and cost.
Your required federal Loan Estimate and Closing Disclosure will detail these amounts for your specific loan.
Title, attorney, and building fees
- Title insurance and search (condos and townhouses): A lender’s title policy is typically required if you finance, and an owner’s policy is a one-time protection for you. Title search and settlement services also apply.
- Attorney fees: New York buyers hire an attorney to review the contract, handle due diligence, coordinate title, and attend closing. In Manhattan, typical fees for standard closings are often in the low to mid thousands, with complex deals higher.
- Co-op building charges: Expect board application fees, credit/background checks, and move-in or elevator reservation fees. Some co-ops require refundable deposits and, in limited cases, capital contributions or additional escrows.
Illustrative UWS scenarios
These examples are for learning only. They show method and order of magnitude. Always verify your numbers with your attorney and lender.
Scenario A: Co-op at $900,000 (illustrative)
Below $1,000,000, you would not owe mansion tax. A co-op buyer still prepares for building and lender items.
- Attorney: $2,000
- Board application and background fees: $600
- Move-in deposit and elevator reservation: $300 (refundable)
- Appraisal: $600
- Lender fees and escrows: $3,000
- Prepaids, such as first month maintenance and interest: $1,500
- Illustrative total closing costs: $8,000 to $12,000, plus your down payment
Scenario B: Condo at $1,200,000 (illustrative)
At this price, mansion tax is often a meaningful line item.
- Mansion tax at 1 percent illustrative: $12,000
- Buyer attorney: $2,500
- Lender fees, appraisal, and processing: $4,000
- Title insurance, owner’s policy: illustrative $3,500
- Mortgage recording tax: illustrative $5,000
- Prepaids and escrows for taxes, insurance, interest: $6,000
- Recording and clerk fees: $500
- Illustrative total closing costs: about $33,500, plus your down payment
Scenario C: Townhouse at $3,500,000 (illustrative)
At higher price points, mansion tax rates increase by bracket. Larger loans increase title and mortgage recording taxes.
- Mansion tax: verify the current bracket and rate for your price
- Title insurance and mortgage recording tax: larger due to higher price and loan size
- Attorney fees, escrows, and prorations: also larger
- Illustrative total closing costs: tens of thousands to low hundreds of thousands, depending on price, loan size, and contract terms
Who pays what
Typical allocations in Manhattan can vary by contract, but buyers often pay:
- Mansion tax, when applicable
- Lender fees, appraisal, and mortgage recording tax for condos and townhouses
- Buyer’s attorney fees
- Title insurance for condos and townhouses, including the lender policy if financing
- Co-op application and move-in fees
Sellers often pay broker commissions and city and state transfer taxes on condo and townhouse resales, but this depends on the contract. Your attorney will confirm your exact obligations.
Timing on the Upper West Side
- Co-ops: Allow more time for board approval. Plan for about 30 to 90 days from accepted offer to closing, depending on the building and the completeness of your board package.
- Condos and townhouses: With financing in order, many close in about 30 to 60 days.
Your lender’s timeline and the building’s approval process drive the schedule. Ask your attorney to outline the milestones early.
Buyer checklist
Use this simple list to stay organized:
- Confirm if the home is a co-op, condo, or townhouse
- Get a mortgage pre-approval and a Loan Estimate with closing costs
- Hire a New York real estate attorney
- Ask the seller’s side for an itemized estimate of recording and transfer items per the contract
- Estimate and set aside funds for attorney fees, appraisal, title or lender fees, prepaids and escrows, building fees, and mansion tax if applicable
- Verify co-op fees and deposits with the managing agent, including any flip tax guidance
- Confirm current tax rates and recording fees with your attorney
Ways to reduce cash to close
- Request a seller concession: In some markets, a seller credit can offset part of your costs
- Negotiate timing and building deposits: Ask about applying refundable deposits to move-in timing
- Consider lender credits: Some buyers trade a slightly higher rate for closing cost credits
- Structure the loan thoughtfully: Your lender can model options to balance payment and upfront cash
Plan your next steps
Understanding closing costs helps you buy with clarity. If you are weighing a co-op versus a condo, or you want a second set of eyes on your cash-to-close plan, let’s talk through your numbers and timeline. For tailored, local guidance on the Upper West Side, connect with Geri Grobman for a quick consultation.
FAQs
What are typical condo buyer closing costs at $1.2M on the UWS?
- Illustrative totals can be around the low to mid five figures, driven by mansion tax, lender fees, title insurance, mortgage recording tax, and prepaids. Always confirm your exact numbers with your attorney and lender.
Do co-op buyers pay mortgage recording tax in NYC?
- No. Mortgage recording tax applies to recorded mortgages on real property, such as condos and townhouses. Co-op share loans are not recorded in the same way, so this tax does not apply to co-ops.
Who pays the mansion tax in New York?
- The buyer typically pays the New York State mansion tax on eligible purchases at $1,000,000 and above, though parties can negotiate in the contract. Verify your bracket and final allocation with your attorney.
What co-op fees should I expect as a buyer?
- Common items include a board application fee, credit and background checks, move-in or elevator reservation fees, and refundable deposits. Some co-ops may require a capital contribution or additional escrow.
Do I need title insurance for a condo or townhouse?
- If you finance, your lender will typically require a lender’s title policy. Many buyers also purchase an owner’s policy for additional protection. Your attorney can explain coverage and cost.
How long do Upper West Side closings take?
- Co-ops often take about 30 to 90 days due to board approval. Condos and townhouses often close in about 30 to 60 days if financing is in order.
