I'll bet nobody ever told you what to expect at closing...

So, here goes. When buying new construction, you can anticipate many or all of the following costs:

• Real Estate Attorney: approximately $1,500 to $3,800
• Mansion Tax: 1% of the purchase price (if the property is over $1 million)
• Financing Application Fee: approximately $1,000
• Mortgage Recording Tax: 1.8 to 1.925 percent of the mortgage
• New York City Real Property Transfer Tax: 1 to 1.425 percent of the purchase price (yes, transfer tax is paid by the BUYER, when purchasing direct from the Sponsor of a new development)
• New York State Real Property Transfer Tax: 0.4 percent of the purchase price
• Title Insurance: 0.5 to 0.8 percent of the purchase price
• Recording Fees: $5 per page or $17 per document
• Move-in Fee: approximately $1,000
• Contribution to the Building Reserve/Working Captial Funds: 3 to 5 months' common charges
• Contribution for the apartment of the live-in Superintendent: approximately $4,500
• Portion of the Developers' Legal Fees: approximately $1,500 to $3,000

I like to prepare all of my buyers with this information up-front, so they can determine what type of apartment they can REALLY qualify for. A good rule of thumb is as follows: Add 4 to 5 percent of the purchase price for closing costs if paying all cash, and add 6 to 7 percent of the purchase price for closing costs if financing...this applies to purchasing new construction ONLY!