Are you trying to budget for a home purchase or sale in Westchester and not sure what closing costs will look like? You are not alone. The list can feel long, and it changes by town, loan type, and even negotiation. This guide breaks down what buyers and sellers typically pay in Westchester County, the local details that affect your total, how costs differ if you are moving to Connecticut, and simple steps to get an accurate estimate. Let’s dive in.
What closing costs cover
Closing costs are the one-time fees and taxes due at the end of your transaction. They cover services like title work, lender processing, transfer taxes, attorney representation, and recording with the county clerk. These are separate from your down payment or the net proceeds you receive as a seller.
Your exact costs depend on your price point, financing, property type, and local requirements in the town where the home is located. Some items are negotiable, and some are set by law or local fee schedules.
Buyer costs: what to expect
Most buyers in Westchester will see a mix of lender fees, title and closing services, government charges, and prorations. Cash buyers avoid lender-related items and any mortgage recording tax.
Lender and loan fees
If you finance your purchase, expect charges for loan origination, underwriting, and processing. Your lender will also require an appraisal to confirm value, plus smaller items like a credit report and flood certification. These fees vary by lender and loan product.
Title search and title insurance
A title company searches the property’s ownership history and confirms there are no unresolved liens. Title insurance protects you and your lender from covered title defects. Lenders require a lender’s policy. An owner’s policy is also common. Who pays which policy can vary by local custom and negotiation, so confirm early with your attorney and title company.
Recording and mortgage taxes
The Westchester County Clerk records your deed and any mortgage. Recording fees are typically modest but vary by document type and page count. New York State and some counties impose a mortgage recording tax when you take a loan. Cash buyers do not pay a mortgage recording tax because no mortgage is recorded.
Inspections and surveys
Most buyers pay for a general home inspection and may order specialized inspections, such as pest. A survey may also be requested to confirm boundaries and improvements. These are elective in many cases but recommended.
Adjustments and HOA items
At closing, you and the seller settle items that cross over the closing date. These can include property tax prorations and prepaid common charges for condos or HOAs. Your contract will spell out how these are allocated.
Attorney representation
In New York, both buyers and sellers commonly hire attorneys to handle contracts, due diligence, and closing. Fee structures can be flat or hourly. Get quotes in writing and ask what is included.
Seller costs: what to expect
Sellers have their own set of fees and taxes. The largest single cost for many sellers is the brokerage commission agreed to in the listing agreement.
Broker commission
Listing commissions are negotiated, commonly split between the listing and buyer’s broker, and paid by the seller at closing unless otherwise agreed in the contract.
Transfer taxes
New York imposes real estate transfer taxes when a property changes hands. These are calculated based on the purchase price. Some municipalities may also have local transfer taxes. Who pays can be driven by local custom and negotiation, so confirm in your contract and with your attorney.
Attorney and closing administration
Sellers hire their own attorney, who prepares and reviews documents, coordinates with the buyer’s side, and attends closing. There may also be settlement or document preparation fees from the title or closing agent.
Payoffs and prorations
If you have a mortgage, your lender will provide a payoff statement. The payoff is settled from your proceeds. You will also settle prorations for property taxes and any HOA charges per the contract.
Title and municipal items
Buyers will expect clear title and any required municipal certificates. You may be asked to address permit or certificate of occupancy issues before closing. Your attorney can advise on what your town requires.
Shared and negotiable items
Some closing costs are negotiable. Allocation often depends on the market and property type.
- Title insurance: Who pays the owner’s policy can vary by local custom and negotiation.
- Transfer taxes: Often assigned by custom or contract. Confirm responsibility in writing.
- Settlement and escrow fees: These may be split or assigned to one party.
- Seller concessions: A seller can credit the buyer at closing to help cover costs, subject to loan program limits.
Always confirm in the purchase contract and review the final settlement statement before closing.
Westchester specifics to know
Local rules and habits matter in Westchester. Here are the key items to confirm early.
Transfer tax and mansion tax
New York State imposes a real estate transfer tax. There is also additional state taxation on higher-priced properties often called a mansion tax. Thresholds and rates can change. Ask your attorney to confirm what applies to your price point.
Mortgage recording tax
If you finance your purchase, a state and potentially county-level mortgage recording tax may apply. This can be a notable cost for borrowers. Cash buyers do not pay it because no mortgage is recorded.
County and town recording
The Westchester County Clerk records deeds and mortgages. Recording fees depend on documents and page counts. Town clerks may have separate municipal fees for certificates or local filings. Confirm with the County Clerk and the specific town where the property sits.
Attorney-driven closings
New York transactions are attorney-driven. Plan for legal fees on both sides and allow time for attorney review, title clearance, and document preparation.
Title insurance practice
Both lender’s and owner’s title policies are common in Westchester. Premiums follow rate schedules filed with state regulators. Who pays the owner’s policy can vary. Ask your title company and attorneys what is typical for your town and negotiate accordingly.
What changes your total
Your closing cost bottom line can shift for many reasons. The biggest drivers are price, loan type, and local taxes.
- Purchase price and loan amount. Percentage-based items scale with price and financing.
- Loan vs. cash. Cash buyers avoid lender fees and any mortgage recording tax.
- Property type. Co-ops and condos can have additional fees, board charges, or transfer requirements.
- Negotiated terms. Seller concessions, who pays title, and how transfer taxes are assigned all matter.
- Municipal requirements. Town-specific certificates, inspections, or local fees can add line items.
- Timing. Closing date can affect tax prorations and HOA adjustments.
- Complexity. Title issues, multi-parcel properties, or special endorsements can increase costs.
CT vs. Westchester costs
If you are moving from Westchester to Connecticut or vice versa, do not assume costs match.
- Transfer and conveyance taxes. Connecticut has state and some municipal conveyance taxes. Who pays and the rates can differ from New York.
- Mortgage and recording rules. Connecticut treats mortgage recordation and related taxes differently from New York. Ask your CT professionals how your loan type impacts costs.
- Title insurance and closing customs. Both states use attorneys and title insurance, but who commonly pays which policy can vary by county or town.
- Local certificates and municipal searches. Requirements differ by municipality. Plan for town-specific charges in CT, just as you would in Westchester.
Checklist if you are comparing NY to CT:
- Get a written estimate from a CT-based lender and attorney if you may buy in CT.
- Ask for a CT title quote that includes owner’s and lender’s policies and any endorsements.
- Confirm CT conveyance tax responsibility and municipal charges with the town clerk.
- Compare estimates side by side with your Westchester quotes before you decide.
How to budget and plan
A clear plan will save you time and reduce stress.
- Ask your lender for a Loan Estimate early. This outlines loan-related closing costs. Compare it later to your Closing Disclosure.
- Request a sample seller net sheet or buyer cost sheet from your agent. Use it to plan your cash to close or net proceeds.
- Get quotes from local professionals. Obtain written estimates from two real estate attorneys and one title company. Ask what is included and what could change.
- Build a buffer. A common planning approach is to set aside a few percent of the purchase price for closing costs. Your actual number depends on price, loan type, and taxes.
- Verify local fees. Call the Westchester County Clerk and your town clerk for current recording and municipal fees. Your professionals can help you confirm.
Common scenarios
Here are a few examples of how the mix can change.
- First-time buyer with a mortgage. Expect lender fees, appraisal, title insurance, mortgage recording tax, and standard recording fees. Consider a seller concession if allowed by your loan.
- Cash buyer. No lender fees or mortgage recording tax. You still have title insurance options, attorney fees, and recording.
- Seller with a mortgage payoff. Plan for broker commission, transfer taxes, attorney fees, payoff of any loans or liens, and prorations.
- Higher-price sale. Confirm whether additional transfer taxation applies at your price point. Title premiums and taxes scale with price.
If you want a precise estimate for your property and town, connect with a local team that handles Westchester and nearby CT closings every week. You will get clarity on what is required, what is negotiable, and your realistic cash needs.
Ready to map out your numbers with a clear, step-by-step plan? Reach out to Yasmina Delacruz-Bailey for a customized closing cost estimate and bilingual guidance from contract to keys.
FAQs
What are typical buyer closing costs in Westchester?
- It depends on your price, loan type, title fees, transfer taxes, and recording; ask your lender for a Loan Estimate and your agent for an itemized cost sheet, then budget a buffer for changes.
Who usually pays for title insurance in Westchester?
- It varies by local custom and negotiation; confirm with your attorney and title company which party will cover the owner’s and lender’s policies in your town.
What is New York’s mansion tax and could it apply to me?
- New York imposes additional state taxation on higher-priced properties; ask your attorney to confirm the current thresholds and whether your purchase price triggers it.
Are closing costs different for co-ops vs. houses?
- Yes; co-ops can include board fees, application charges, and potential flip taxes in addition to standard closing items, so request a co-op-specific estimate.
Do I need an attorney to close in Westchester?
- In New York, it is common for both buyer and seller to hire attorneys to review contracts, clear title issues, and represent them at closing.
Can a seller pay some of my buyer closing costs?
- Yes, through a seller concession negotiated into the contract; your loan program may set limits, so coordinate with your lender and attorney.
