How Much Cash Will You Need at Closing Beyond Your Down Payment in Manhattan?

If you’re buying in Manhattan, your closing costs depend heavily on property type and whether you are financing. Manhattan’s market—dominated by co-ops and high-value condos—has its own cost patterns that every buyer should understand. Before you begin touring homes, you deserve a clear, practical overview of what to expect.

In this guide, you’ll learn what closing costs include, how co-ops, condos, and townhouses differ, realistic cash ranges to plan for, and simple steps to get accurate numbers. Let’s dive in.

What Closing Costs Include

Closing costs are the one-time expenses and required prepayments due when you complete your purchase. They may include:

• Taxes and recording charges

• Lender fees and mortgage-related taxes (if financing)

• Legal and title costs

• Inspections and building fees

• Prepaid items and escrow deposits (property taxes, insurance, HOA/common charges)

The exact mix depends on your property type and whether you are a cash or financed buyer.

Manhattan Snapshot: Typical Cost Ranges

Co-ops

Co-ops are often the most affordable in terms of buyer closing costs. Many Manhattan buyers see costs around 1% to 2% of the purchase price, sometimes less, especially for all-cash deals.

Condos

Condos involve deeded ownership and title insurance. With financing, closing costs commonly range from 2% to 4% of the purchase price or more. All-cash condo buyers are lower because they avoid loan-related fees.

Townhouses & 1–3 Family Homes

With deed, title, recording, inspections, and mortgage taxes, townhouse buyers often budget 3% to 5%+ when financing, depending on price and loan amount.

Financing always increases costs due to mortgage recording tax, lender fees, and escrow deposits.
Cash buyers avoid loan costs but still pay legal fees, title (for deeded property), and recording charges.

Co-op Buyer Costs in Manhattan

When purchasing a Manhattan co-op, you are buying shares and a proprietary lease, not real property. Co-ops typically:

• Do not require title insurance

• Charge board application and move-in fees

• Require detailed financial reviews

• Collect refundable and nonrefundable move-related fees

Common co-op closing cost items include:

• Buyer’s attorney: ~$1,500 to $4,000+ depending on complexity

• Board application, building fees, and counsel review: often a few hundred to several thousand dollars

• Lender & appraisal fees (if financing): several hundred to several thousand dollars

• Escrows and prepaids: first month of maintenance or similar charges

Co-ops generally keep buyer closing costs lower than condos or townhouses, but building fees vary widely across Manhattan.

Condo Buyer Costs in Manhattan

Condo purchases involve deeded ownership, meaning title insurance and mortgage recording tax (if financing) apply. Manhattan condo buyers typically encounter:

• Title insurance: one-time owner and lender policy premiums that scale with price and loan amount

• Mortgage recording tax: a significant cost for financed Manhattan purchases

• Lender fees: origination, underwriting, appraisal, and optional points

• Attorney fees: ~$1,500 to $3,500+

• Building application & move fees: common across Manhattan luxury buildings

• Escrow and prepaid items: taxes, insurance, and common charges

Because Manhattan condo prices are higher, title and tax-related costs are usually more noticeable than in outer boroughs.

Townhouse & 1–3 Family Costs in Manhattan

Townhouse buyers receive fee simple ownership, which involves standard title insurance, full inspections, and deed recording. Many Manhattan townhouse purchases also involve:

• Comprehensive inspections (structural, systems, pests, chimneys, etc.)

• Surveys and certificate checks

• Significant mortgage recording tax if financing

• Mansion tax, which applies at and above statutory thresholds—commonly triggered in Manhattan due to price points

Common townhouse buyer costs include:

• Title insurance: premiums increase with purchase price and loan size

• Inspections & survey: several hundred to over $1,000 depending on scope

• Attorney & lender fees: similar to condos

• State mansion tax: starts at 1% and increases with price tiers—commonly triggered in Manhattan

Fee-by-Fee Breakdown

Mansion Tax

This New York State tax applies to residential purchases at or above statutory thresholds, beginning at 1% at $1,000,000 and scaling higher in incremental tiers.
Manhattan buyers frequently encounter this tax due to property values. Confirm current rates with your attorney.

Mortgage Recording Tax

Applied to mortgages on deeded properties (condos and townhouses), this one-time tax is based on the loan amount, not the purchase price. Your lender will estimate this early in the process.

Title Insurance

Required for condos and townhouses, and for lenders if you finance. Manhattan title premiums can be several thousand to the high thousands depending on price.
Co-op buyers typically do not purchase title insurance.

Attorney & Settlement Costs

Manhattan buyers hire a real estate attorney to review the contract, handle due diligence, coordinate title, and attend closing. Fees generally run $1,500 to $4,000+, depending on complexity.

Lender & Third-Party Loan Fees

Expect:

• Application, processing, and underwriting fees

• Appraisal (several hundred dollars)

• Credit report

• Optional discount points for rate reductions

Inspections, Surveys, Certificates

• Co-ops/condos: optional unit inspections

• Townhouses: full home inspections, surveys, system-specific evaluations

These typically range from hundreds to over a thousand dollars depending on property size and condition.

Building Fees (Co-ops & Condos)

Fees vary dramatically across Manhattan but may include:

• Application fees

• Board counsel review fees

• Move-in/move-out deposits

• Elevator reservation fees

Confirm building fee schedules early in your process.

Escrows & Prepaids

Lenders typically collect initial deposits for:

• Property taxes

• Homeowners insurance (for condos/townhouses)

• HOA/common charges or co-op maintenance

These can add several thousand dollars to your cash needed at closing.

Recording & Miscellaneous Charges

Deed recording, mortgage recording, and filing fees are individually modest but cumulative.

Realistic Manhattan Examples

These examples illustrate typical ranges. Exact figures depend on your contract, lender, building, and tax schedules.

Example A: Co-op, $900,000, financed

• Attorney: $1,500–$3,000

• Lender, appraisal, credit: $1,000–$4,000

• Co-op board fees, move deposits: $500–$3,000

• Escrows and prepaids: $1,500–$4,000

• Title insurance: not required

Estimated buyer cash at closing:
~$4,500 to $14,000 (~0.5% to ~1.5% of price)

Example B: Condo, $1,500,000, financed

• Mansion tax (commonly triggered in Manhattan): 1% = $15,000 (or applicable tiered rate)

• Title insurance: $3,000–$8,000+

• Attorney: $1,500–$3,500

• Lender fees, appraisal, points: $2,500–$7,000

• Mortgage recording tax: significant; ask lender for estimate

• Condo application/move fees: $300–$2,000

• Escrows & prepaids: $3,000–$10,000

Estimated buyer cash at closing:
~$28,000 to $45,000+ (roughly 2% to 4% of price)

Example C: Townhouse, $3,250,000, financed

• Mansion tax: starts at 1% ($32,500) but may be higher per tier

• Title insurance: several thousand to high thousands

• Attorney: $2,500–$5,000

• Lender fees, appraisal, survey: $3,000–$10,000+

• Mortgage recording tax: substantial; confirm exact rate

• Escrows & prepaids: significant for taxes and insurance

Estimated buyer cash at closing:
~$65,000 to $130,000+ (roughly 2% to 5%+ of price)

How Much to Budget

A practical planning guideline:

• Financed condos/townhouses: budget 2% to 4% of the purchase price

• Co-ops: often under 2%, though building fees vary

• Above $1M: include mansion tax and higher title premiums

Build in a buffer to avoid last-minute cash surprises.

Step-by-Step Prep Checklist

1. Speak with a lender early and ask for a Loan Estimate outlining lender fees, mortgage recording tax, and escrow deposits.

2. Retain an experienced Manhattan real estate attorney to review your contract and projected closing costs.

3. Request building documents and fee schedules early for co-ops and condos.

4. Confirm customary buyer vs. seller fees before signing.

5. Get a title insurance quote for condos and townhouses.

6. Prepare proof of funds for application and board review.

Negotiation Tips to Consider

• Some transfer taxes and legal fees may be negotiated depending on the deal.

• In co-ops, confirm if a flip tax applies and who pays it.

• If you plan to buy points or request lender credits, weigh the trade-off between cash at closing and long-term monthly savings.

Key Takeaways

• Your closing costs depend most on property type and whether you finance.

• Co-ops generally have the lowest buyer costs.

• Condos and townhouses add title insurance and mortgage recording tax.

• Plan conservatively, then replace estimates with actual quotes from your lender, attorney, and title company.

Before you move forward, confirm current tax rates, building requirements, and lender estimates. Ready to explore your options in Manhattan with clarity and confidence? Connect with a trusted NYC advisor to map out your next steps.

FAQs

Do Manhattan condo buyers pay a mortgage recording tax?

Yes—if you finance a deeded condo, you will pay a mortgage recording tax based on the loan amount. Get an early estimate from your lender.

Is title insurance required for Manhattan co-ops?

No. Co-op purchases are share purchases, not deed transfers, so title insurance is typically not part of co-op closings.

When does the New York mansion tax apply in Manhattan?

It applies at or above statutory thresholds, beginning at $1,000,000, with additional tiers at higher price points. Confirm current schedules with your attorney.

How much should I budget for closing costs on a financed Manhattan condo?

A common estimate is 2% to 4% of the purchase price, plus prepaids and escrows. Your lender’s Loan Estimate will narrow this.

Can a seller cover some closing costs in Manhattan?

Possibly. Concessions depend on market conditions, property type, and contract terms.