Buying or selling in Flatlands and trying to pin down what you will actually pay at the closing table? You are not alone. Closing costs in Brooklyn can feel confusing because they change by property type, financing, and building rules. This guide breaks down who pays what for co-ops, condos, and 1 to 3 family homes, what taxes and fees to expect, and simple ways to budget and save. Let’s dive in.
What closing costs cover in Flatlands
Closing costs are the one-time fees and taxes due at settlement, separate from your down payment. In New York City, buyers often see totals around 2% to 5% of the purchase price, depending on mortgage and property type. Sellers usually pay more due to broker commission plus transfer taxes, often 6% to 10% of the sale price. Co-ops, condos, and houses each have different line items, so it helps to plan by property type.
Who pays what by property type
Co-ops in Flatlands
Buyers typically pay:
- Lender fees if financing, plus appraisal and credit report.
- Co-op application and board package fees, move-in fee, and a move deposit.
- Possible building transfer fees and insurance requirements.
Sellers typically pay:
- Broker commission, commonly 5% to 6% of the sale price.
- Attorney fees and any payoff or lien clearance costs.
- Possible co-op flip tax or other building transfer fees if the bylaws require it.
Note: Co-op closings are share transfers rather than deed transfers. They often avoid the real property recording costs that apply to condos and houses. Building fees and timelines can be more involved due to board approval.
Condos in Flatlands
Buyers typically pay:
- Title insurance and recording fees.
- Mortgage Recording Tax if financing in NYC, often a significant cost.
- Lender fees, appraisal, credit report, and escrow deposits.
- Condo transfer or estoppel fees, and move-in fees or deposits.
Sellers typically pay:
- Broker commission, commonly 5% to 6% of the sale price.
- New York State and NYC transfer taxes on the deeded transfer, if applicable.
- Attorney fees and clearance of any arrears.
1 to 3 family homes in Flatlands
Buyers typically pay:
- Title insurance, recording fees, lender fees, appraisal, and credit report.
- Mortgage Recording Tax if financing.
- Escrow setup for property taxes and insurance.
Sellers typically pay:
- Broker commission, commonly 5% to 6% of the sale price.
- New York State and NYC transfer taxes on the deeded transfer, if applicable.
- Attorney fees, payoff statements, and municipal charges.
Taxes and government fees to know
- New York State Real Estate Transfer Tax. Sellers commonly pay an NYS transfer tax of approximately 0.40% of the consideration on deeded transfers. Confirm the exact rate at the time of closing.
- NYC Real Property Transfer Tax (RPTT). For residential deeded transfers, NYC applies tiered rates. A 1% rate has applied to transactions up to $500,000, with a higher rate for amounts over that threshold. Always confirm the current Department of Finance table for your price band.
- New York State Mansion Tax. Typically charged on purchases over $1,000,000, with a 1% rate at $1,000,000 and higher graduated tiers at larger price points. This is commonly paid by the buyer unless negotiated otherwise.
- Mortgage Recording Tax (NYC). Applies to most financed condo and house purchases when a mortgage is recorded. In NYC, this tax commonly ranges around 1.5% to 2.5% of the mortgage amount. Co-ops usually do not involve a recorded mortgage on real property, so this tax works differently.
Financing and lender-related costs
If you are financing, plan for the following:
- Lender fees. Application, origination, underwriting, and rate lock fees. Totals often fall near 0.5% to 1.5% of the loan amount or are charged as flat fees.
- Appraisal. Often $400 to $1,200 depending on property type and lender.
- Credit report. Typically $25 to $100.
- Escrows. Your lender may collect several months of property taxes and insurance at closing, which varies by billing cycle.
- Mortgage-related insurance. Private mortgage insurance may be required depending on down payment and loan program.
Building and move fees
In co-ops and condos, building-level costs are common and vary by address:
- Application and processing fees.
- Move-in or move-out fees and refundable deposits.
- Condo transfer or estoppel fees and management company charges.
- Co-op flip tax if required by the bylaws. Who pays is determined by building rules or negotiation.
Prorations and adjustments at closing
You will see line items that credit either buyer or seller based on the closing date:
- Property taxes are prorated so each party pays for their period of ownership.
- Common charges or maintenance are prorated in condos and co-ops.
- Utilities and municipal charges are adjusted to the closing date.
Flatlands factors that can affect your costs
- Property mix. Flatlands has many 1 to 3 family homes, so full title insurance, recording fees, and deed transfer taxes often apply. Co-ops and condos also exist, but in smaller numbers.
- Flood and insurance. Portions of Southeast Brooklyn can carry elevated flood risk. Even if your address is outside a special flood hazard area, your lender will run a flood determination. If flood insurance is required, budget for the ongoing premium and possible escrow.
- Market dynamics. In a strong seller’s market, sellers may be less willing to offer concessions. In a buyer’s market, you may see credits toward closing costs.
Quick examples to set expectations
The following are illustrative only. Always verify exact figures with your attorney, lender, and title company.
- Example 1: $600,000 1 to 3 family home with a mortgage. Buyer closing costs might run about $10,000 to $30,000 based on lender fees, appraisal, title insurance, recording fees, and the Mortgage Recording Tax. Seller costs would include broker commission, plus NYS and NYC transfer taxes and legal or payoff fees.
- Example 2: $600,000 condo with financing. Buyer pays title insurance and the Mortgage Recording Tax, which can push totals higher than a comparable co-op. Seller pays broker commission and applicable transfer taxes.
- Example 3: $400,000 co-op. Buyer closing costs are often lower than a deeded purchase due to different recording and title requirements, though buyers still budget for lender fees if financing, application fees, and move costs. The seller may owe a flip tax depending on the building’s rules.
Simple closing cost worksheet
Property type (co-op, condo, or 1 to 3 family) — Purchase price $____ — Mortgage amount $_____ — Closing date ____ — Buyer or Seller?
Buyer worksheet
- Down payment (not a closing cost): $____
- Loan origination and lender fees: $____ (range 0.5% to 1.5% of loan or fixed)
- Appraisal: $____ (typical $400 to $1,200)
- Credit report: $____ ($25 to $100)
- Mortgage Recording Tax (if mortgage recorded): $____ (estimate 1.5% to 2.5% of mortgage in NYC, confirm)
- Title insurance (lender’s plus optional owner’s): $____ (often 0.3% to 0.7% of loan or purchase, varies)
- Attorney fees: $____ (range $1,200 to $4,000 based on complexity)
- Recording fees and government charges: $____
- Escrow for taxes and insurance (initial): $____
- Co-op or condo building fees (application, move-in, transfer): $____
- Estimated total buyer closing costs: $____
Seller worksheet
- Broker commission: % × sale price = $ (typical 5% to 6%)
- NY State transfer tax (about 0.40%): $____ (confirm current rate)
- NYC Real Property Transfer Tax (residential, tiered): $____ (confirm current DOF table)
- Seller attorney fees, payoff fees, municipal charges: $____
- Flip tax (co-op) or condo transfer fee: $____
- Outstanding mortgage payoff(s): $____
- Estimated total seller closing costs: $____
All figures are indicative. Verify current transfer tax rates, Mortgage Recording Tax rules, and building fees with your attorney or closing agent.
How to reduce your net closing costs
- Compare lenders. Rate, points, and lender fee structures vary. A small change in pricing can lower your upfront cash.
- Ask for credits. In a softer market or on older listings, sellers may offer a closing credit that offsets buyer costs.
- Know your building rules early. Confirm any flip tax, transfer fees, or move deposits during diligence so you can negotiate who pays.
- Time your closing. When possible, timing can affect escrow deposit size based on tax billing cycles.
- Understand mortgage tax and title. For condos and houses, the Mortgage Recording Tax and title insurance are major drivers. Model these with your lender and title company before you offer.
Get a local estimate you can trust
Every Flatlands address and building works a little differently. If you share your property address, price, property type, whether you are financing or paying cash, and your contact info, our team can coordinate a tailored closing cost worksheet with our attorney and title partners. Ready to plan with confidence? Say Hey and connect with Claudette Rolling for a free, local consultation.
FAQs
In NYC, who pays transfer taxes on a Flatlands sale?
- Sellers typically pay New York State and NYC transfer taxes on deeded transfers, while the mansion tax on purchases over $1,000,000 is commonly paid by the buyer unless negotiated.
Do co-op closings in Flatlands include transfer taxes?
- Co-op share transfers are handled differently than deeded property and often do not trigger the same real property transfer taxes, though co-ops may impose flip taxes and transfer fees.
What are typical broker commissions in Flatlands?
- A total commission of 5% to 6% of the sale price is common in NYC, usually split between listing and buyer brokers and negotiated in the listing agreement.
How can I estimate closing costs before I make an offer?
- Use the worksheet in this guide, ask your lender for a Loan Estimate, and request your attorney or title partner to model transfer taxes, recording fees, and building charges.
Can closing costs be negotiated in Flatlands?
- Yes, buyers and sellers can negotiate credits or who pays certain fees, and what is possible often depends on market conditions and building rules.
Do I need flood insurance for a Flatlands property?
- Your lender will order a flood determination; if the property falls in a special flood hazard area, flood insurance is typically required and may be escrowed with your mortgage.
