Westchester Closing Costs Guide for Buyers and Sellers

Buying or selling a home in Westchester and wondering what you will actually pay at the closing table? You are not alone. Between lender fees, taxes, insurance, and escrow accounts, the numbers can feel confusing. This guide gives you a clear, Westchester-focused breakdown of typical closing costs for buyers and sellers, what each fee covers, realistic ranges, and easy ways to plan ahead. Let’s dive in.

What closing costs cover

Closing costs are the one-time fees and prepaids due when you finalize a purchase or sale. They include lender charges, title and recording fees, attorney services, taxes, and prorated items like property taxes and insurance. Who pays each item depends on your contract, loan type, and local custom.

If you are buying with a mortgage, a safe early estimate is about 2% to 5% of the purchase price in closing costs. If you are selling, agent commissions are usually the largest expense, with additional seller costs commonly totaling another 1% to 3% of the sale price, not counting any mortgage payoff.

Buyer closing costs in Westchester

If you are financing your purchase, expect a mix of lender fees, legal and title charges, prepaids, and inspections.

Mortgage and lender fees

• Loan origination or application: $500 to $2,500, sometimes a percentage of the loan.
• Underwriting and processing: often bundled, about $300 to $1,000.
• Points or rate buydown: optional, typically 0% to 2% of the loan if you choose to buy a lower rate.
• Appraisal: about $400 to $900 depending on property type.
• Credit report and verification: about $25 to $75.
• Flood certificate or tax service: about $20 to $150 combined.

Title, legal, and recording

• Lender’s title insurance: required by your lender, often $500 to $3,000 or more based on price.
• Owner’s title insurance: in many New York areas the seller pays, but this varies by town and can be negotiated. If you pay, it scales with the home price.
• Title search and closing/title agent fees: about $300 to $1,200.
• Recording fees for the mortgage: about $75 to $300.
• Buyer attorney: common in New York, about $1,000 to $3,000 depending on complexity.

Prepaids and escrow accounts

• Homeowner’s insurance: often your first-year premium, about $800 to $3,000.
• Property taxes: you may reimburse the seller for prepaid taxes and you may fund 2 to 6 months of tax escrows at closing. In Westchester, taxes are relatively high, so this can be several thousand dollars.
• Prepaid mortgage interest: from the day you close until your first payment.
• HOA or condo dues: prorated fees and possible reserves if applicable.

Inspections and reports

• Home inspection: about $300 to $800, more for larger or specialized inspections.
• Termite, radon, septic, pool, chimney, or lead: $100 to $800 each.
• Survey: about $300 to $1,200 if required.

Other buyer costs

• Escrow or settlement fee: about $200 to $800.
• Wire and courier fees: about $25 to $150.
• Deed recording: sometimes buyer pays, about $50 to $300.
• PMI: if you put less than 20% down, private mortgage insurance can apply. It is not a closing cost, but it affects your monthly payment and overall budget.

Seller closing costs in Westchester

When you sell, you will see commission, legal fees, taxes, and payoff-related items.

Major seller expenses

• Realtor commissions: commonly 5% to 6% of the sale price, split between listing and buyer’s agents. This is usually your largest cost.
• Seller attorney: about $800 to $3,000 depending on complexity.

Taxes and policy costs

• Owner’s title insurance policy: in many New York markets the seller pays this policy for the buyer’s protection, though practice varies by town and can be negotiated.
• New York State transfer tax: commonly stated as $2 per $500 of the sale price, which equals 0.4%. Check your contract and local custom for who pays.
• Mansion tax: for sales at $1,000,000 or more, the state imposes a 1% tax on the buyer, although parties sometimes negotiate responsibility.
• Local transfer or recording fees: some Westchester municipalities may have additional charges. Verify amounts and payer with the county clerk or your title company.

Other seller items

• Mortgage payoff: your outstanding loan plus any daily interest to the payoff date.
• Recording fees to release the mortgage: about $50 to $200.
• Municipal charges: water, sewer, or special assessments, cleared before or at closing.
• Optional home warranty or agreed repairs: costs vary; some sellers offer credits instead of completing repairs.

After commission, many sellers see another 1% to 3% of the sale price in total closing costs, plus any mortgage payoff and prorations.

Westchester taxes to know

New York State transfer tax

New York State charges a real estate transfer tax equal to $2 per $500 of the sale price, which equals 0.4%. Your contract and local custom determine who pays. Confirm with your attorney or title company.

New York State mansion tax

If your purchase price is $1,000,000 or more, the state imposes a 1% mansion tax. Buyers typically pay this in Westchester, but you can negotiate responsibility in your contract.

Local transfer or recording fees

Some Westchester towns and cities may have their own fees. Amounts and who pays can vary, so verify early with your title professional or the county clerk.

How negotiation can shift costs

You can often reduce or reallocate closing costs with smart negotiation.

• Owner’s title policy: custom may suggest who pays, but parties can negotiate. In competitive markets, buyers sometimes agree to pay to strengthen an offer.
• Seller credits: buyers can request credits toward closing costs, subject to lender limits tied to loan type and down payment.
• Rate buydowns: sellers or builders may fund a temporary or permanent buydown to lower the buyer’s rate.
• Lender fees: buyers can shop lenders, negotiate broker fees, or ask for a lender credit in exchange for a slightly higher rate.
• Repairs vs credits: both sides may prefer a credit so the buyer controls the repair after closing.
• Choice of title or closing party: selecting the title company or closing attorney can influence fee structures.

Real-world examples

Use these examples to frame your budget. Exact numbers will depend on your loan, price, and contract.

Buyer example: $700,000 purchase, 20% down

• Loan amount: $560,000.
• Typical buyer closing costs: about 2% to 4% of purchase price, or $14,000 to $28,000.
• Sample line items: appraisal $500, lender fees $1,000 to $3,000, title and search $1,000 to $2,500, attorney $1,000 to $2,000, prepaids and escrows $4,000 to $10,000, recording and wires $200 to $600, inspections $500 to $1,500.

Seller example: $700,000 sale

• Commission at 5.5%: $38,500.
• Attorney and recording/payoff support: about $1,500 to $3,000.
• New York State transfer tax at 0.4%: $2,800 if the seller pays per local custom and contract.
• Other seller costs often total 1% to 3% of price, or $7,000 to $21,000, not including mortgage payoff.

High-end example: $1,200,000 purchase

• Mansion tax at 1%: $12,000, typically paid by the buyer.
• Title premiums and escrows scale with price, so buyer closing costs can reach the mid five figures. Seller commission rises with price as well.

Quick checklist to budget right

Use this list to estimate and confirm your numbers early.

• Ask for a written estimate early: buyers receive a Loan Estimate and later a Closing Disclosure, sellers can request a seller net sheet.
• Get 2 to 3 quotes for mortgage and title or closing services.
• Confirm who pays the owner’s title insurance policy.
• Plan for prepaids: property taxes, homeowner’s insurance, and prepaid mortgage interest.
• Review your contract for seller credits, mortgage contingency, and transfer tax responsibility.
• Request a payoff statement for any existing seller mortgage and confirm recording or satisfaction fees.
• If the price is $1,000,000 or more, confirm mansion tax details.
• If your property is in another state, like New Jersey, confirm state-specific rules.

Get a personalized estimate

Share the basics and we can outline your likely closing costs or seller net in minutes. Provide your zip code and municipality, purchase price, whether you have a mortgage and your down payment percent, property type, expected closing date, and whether you need a buyer or seller estimate.

Ready to plan with confidence? Book a consultation with the local team at At Home with Yara Realty.

FAQs

When will I receive an itemized estimate of closing costs?

• Buyers receive a Loan Estimate within three business days of mortgage application and a Closing Disclosure at least three business days before closing; sellers should request a net sheet and a payoff statement early.

Who usually pays the owner’s title insurance policy in Westchester?

• In many New York counties the seller pays, but practice varies by town and can be negotiated, so confirm with your attorney or title company.

Can a buyer ask the seller to cover closing costs in Westchester?

• Yes, buyers can negotiate seller credits toward closing costs or a rate buydown, subject to lender limits based on loan type and down payment.

How do Westchester property taxes affect my cash to close?

• Lenders often require 2 to 6 months of tax escrows at closing and you may reimburse the seller for prepaid taxes, which can add several thousand dollars to cash needed.

Are attorneys required for real estate closings in New York?

• It is common for both buyers and sellers to use attorneys in New York transactions; fees vary, so get quotes early.

What documents do I need for an accurate closing-cost estimate?

• Provide your signed contract, loan details if applicable, current tax bills, any HOA information, and for sellers a mortgage payoff statement and municipal billing details.