New York vs. Ct closing costs

Courtesy of Elizabeth Douthit at Round Hill Partners (and Gentry Capital), here are closing costs for the two areas. (I’m leaving out attorney fees etc, which are similar)

Purchase Price: $2,000,000                           Mortgage Amount: $1.250

Expense Item                                                        NY                                        CT

Property Tax      (6 mos)                                    $14,000                             $5,500

NY St Mortgage Tax                                            $16,250                               N/A

NY St Mansion Tax                                            $20,000                                N/A

Bottom line, adding in pre-paid interest, attorney’s fees, insurance, etc., figure $75,822 for New York, $25, 429 for Connecticut

10 Comments

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10 responses to “New York vs. Ct closing costs

  1. (This’ll give me an excuse to ask for free expert advice . . . )

    I’m thinking about buying a house in Greenwich for about 0.6 mil. Might pay cash, so no mortgage. Got a ballpark estimate of closing costs? And: Does the buyer normally pay all the closing costs in Greenwich?

    • LLS -costs are split here in Greenwich, but your share isn’t horrendous Figure maybe $1,000, $1,500 for legal fees (call my friend Joel Kaye, (203) 622-4500 and use my name – it will probably cost you an extra 500 bucks!). You probably should get title insurance but it isn’t required if you don’t have a mortgage and you might want to risk it (Good gracious, I just looked up the insurance rates- they’ve soared since I practiced in this field – complete rip off – pay for a title search, maybe $200, skip the insurance at $5,000). Assuming your seller is up-to-date on his property tax, you’ll have to pay him for however many months he’s pre-paid. He’ll have paid through December, so calculate from your closing date. Seller pays a conveyance tax, which isn’t your problem, so I don’t know – if you have $5,000 in pocket, I think you should come out of the closing with cash in your pocket and a deed to your house. Good luck!

  2. Anonymous

    Greenwich is so damn cheap vs Scarsdale, let alone far more costly Manhattan

    Consider total income and property tax arbitrages, as well as relative cost of dirt and sq footage (and private schools as needed)

  3. Anon E. Moose

    Pray tell, what kind of house in Greenwich does one buy for $600k? I’m imagining 6′x9′ under the intersection of I-95 and the train tracks.

  4. Great answer! I’m obliged.

  5. armonk

    I sold a house in Greenwich in 2007 and recall hefty taxes that I paid as the seller.

    Hard to think of a 3 bedroom condo in Armonk as a mansion. In Binghamton, $1 million does buy a mansion, or maybe two of them.

  6. In fact, Anon E. Moose, there are some decent houses showing up in the $600,000 range. This lousy market is bad for sellers, but not for buyers.

  7. Maximus

    Homes are cheaper in Westchester, including Scarsdale and Purchase, but the property taxes are much higher. The cost of buying a home probably works out the same whether one pays for it in higher home prices or taxes.

  8. Anonymous

    Maximus: As a soon to be retiree who lives in Greenwich and has paid off the mortgage, I would rather be here than in Westchester. In my retirement I will not be choked by the high taxes I would have had to pay in Scarsdale. The cash flow (mortgage + taxes) may equal out as you mention, but when the fat lady sings, Greenwich wins.