Seller closing costs in New York are among the highest in the country, and for Long Island homeowners, they can easily add up to 8 to 10 percent of your final sale price. Understanding every fee you will owe before you close is critical to knowing how much money you will actually walk away with after selling your house.
Why Closing Costs Matter More Than You Think
Most homeowners focus almost entirely on their listing price when planning a home sale, but the real number that matters is your net proceeds, what is actually deposited into your bank account after every fee is paid. In New York, those fees are substantial, and they catch a lot of sellers off guard at the closing table.
New York State has some of the highest real estate transaction taxes in the United States, and sellers in Nassau County and Suffolk County face a layered combination of state taxes, mandatory legal fees, title costs, and agent commissions. Whether you are selling a ranch home in Babylon, a colonial in Hempstead, or a waterfront property in Islip, this guide will walk you through exactly what you can expect to pay.
If you want to skip straight to your options, you can also read our Complete Guide to Selling Your House on Long Island for a broader overview of every selling method available to you.
The Big One: Real Estate Agent Commissions
For most Long Island sellers, the single largest closing cost is the real estate agent commission. Traditionally, sellers pay both their own agent and the buyer’s agent, with the total commission typically ranging from 5 to 6 percent of the final sale price.
On a $550,000 home in Suffolk County, that is between $27,500 and $33,000 paid out in commissions alone. Following the National Association of Realtors settlement in 2024, commission structures are evolving, and buyers may now negotiate their agent’s fee separately. However, many sellers still offer a buyer’s agent commission as a way to attract more offers, especially in competitive markets.
It is worth noting that commissions are technically negotiable, but experienced agents in Nassau and Suffolk County rarely discount below 5 percent for a full-service listing. If you choose to sell without an agent (For Sale By Owner), you can eliminate this cost, but you take on all the marketing, negotiation, and paperwork yourself.
New York Transfer Taxes Explained
New York State imposes a real estate transfer tax on the seller. Understanding how these work is essential before you sell any property on Long Island.
New York State Transfer Tax
The base New York State transfer tax is $4 per $1,000 of the sale price, which equals 0.4 percent. On a $500,000 home, that is $2,000 owed to the state. This applies to all residential real estate transactions statewide, including all of Long Island.
The Mansion Tax (High-Value Properties)
If your home sells for $1,000,000 or more, an additional transfer tax applies under New York’s
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