Of course thinking about the money you can earn by selling your home is fun. But it’s just as important to consider the total cost of selling a home in New York City before you list. Your free costs for the transaction, including the broker’s commission, will easily amount to thousands of dollars. Here we have outlined the fees and taxes that homeowners expect to pay when they put an apartment or town hall on the market.
1) Repair Your Home Before You Sell
Surely, this is the first spendable expectation considering the total cost to sell a home in New York City. Repair can improve the value and attractiveness of a home, and it usually happens when preparing to sell. Updates and corrections may be minor. Upgrading kitchen cabinet hardware, painting walls, or replacing outdated lighting fixtures can enhance the first impression your home makes. “For instance, do you have a huge chandelier falling, and your ceilings only eight feet high? We should install a flat panel device instead, so there’s more volume in the room, ”says Gill Chowdhury, an associate real estate broker at Warburg Realty.
One good tip is to replace tired wallpaper with fresh paint. Costs can range from a few hundred dollars if you do DIY to thousands if you hire a professional. “Painting is a relatively small investment for what you get for it,” says Michael J. Franco, an authorized associate real estate broker at Compass. “It’s such a big improvement to have freshly painted housing. It makes people feel that there is less to do if they buy the home. “
2) Stage Your Home
Home staging is not always essential. One deciding factor is how up-to-date your home looks. If things look a little old-fashioned, some fresh decoration is the medicine. How much you spend depends on the size of the apartment, according to Gill Chowdhury. “Expect to spend a minimum of about $ 8,000 to arrange a one-bedroom apartment,” he says. “Remember that you will have to pay an arrangement fee and commit to a three- to six-month contract.”
3. Real Estate Lawyer Fees
It’s not possible to get around this when it comes to the total cost of selling a home in New York City. Here, an attorney is required for each property closing. To that end, expect to spend $ 2,000 to $ 4,000, says Kelsey Martin, co-founder of The Davidson Martin Team at Compass Real Estate. FYI, more complex transactions can cost considerably more. One example is when a borrower and a seller are in two different states or countries.
4. Real Estate Broker Fees
Home sellers in New York City can expect to spend 6% of the overall sale price to compensate the broker you have commissioned to close your deal. This fee is usually shared between your broker and the buyer.
5. Capital Gains Tax
In a word, the capital taxes you pay when you sell your home depend on your income and the profit you make. Tip: You can reduce your capital gains tax if you have made any renovations to your apartment or building.
6. Flip Rate
When it comes to the total cost of selling a home in New York City, here’s some good news for homeowners: Free tax applies only to cooperatives. It is usually 1.5% of the sale price and technically there is no tax. “This is an internal fee that construction costs accelerate revenue and contribute to capital improvements,” says Chowdhury. “It can also be a dollar amount per share or a percentage of the gross sale price.”
7. New York Delivery Tax
Home sellers can expect to spend 1.425% of the sale price if your property sells for more than $ 500,000. For properties valued at $ 500,000 or less, the transfer rate is 1%. High, you can also expect to pay a New York relocation tax that starts at 0.4%. “In some situations, the seller will take a lower sale price and let the buyer pay the transfer taxes,” says Nikki Sun, a real estate agent at Compass. “I always say buyers need to know about delivery taxes even if they don’t have to pay it. Ultimately you will also be selling your apartment one day. “