Long Island Closing Costs Explained

Are you trying to budget for a Long Island closing and wondering where all the numbers come from? You are not alone. Whether you are buying or selling, closing costs can feel like a maze. The good news is that with a clear checklist and the right guidance, you can plan with confidence and avoid surprises. In this guide, you will learn who typically pays what, Nassau vs. Suffolk variations, realistic cost ranges by price tier, and what is negotiable. Let’s dive in.

What closing costs cover

Closing costs are the one-time fees and prepaids due at settlement. They cover services that make the transfer legal and secure, from title work and recording to lender fees and taxes. Buyers typically pay lender-related charges, title and recording, mortgage taxes, and prepaids. Sellers typically pay broker commissions, transfer taxes where applicable, attorney fees, and the payoff of any existing mortgage. Local custom and negotiations can shift items between parties.

Buyer costs on Long Island

Here are the line items you are most likely to see as a Long Island buyer, especially if you are financing the purchase:

• Loan origination and lender fees. This may include an application fee, underwriting and processing fees, and optional discount points if you choose to buy down your rate. Lenders must show these amounts on the Loan Estimate and later on the Closing Disclosure. You can review what a Loan Estimate is and when you receive it in this overview from the Consumer Financial Protection Bureau.
  • Read more about the Loan Estimate on the CFPB website: what a Loan Estimate is and when you get it.
• Appraisal fee. Paid to a third party to confirm value for the lender. The amount varies by property size and complexity.
• Credit report fee. A small pass-through charge.
• Title search and title insurance. The title company researches the chain of title and issues insurance. A lender’s policy is typically required if you have a mortgage, and an owner’s policy is optional but common. Premiums are one-time and scale with price.
• Mortgage recording tax and recording fees. New York imposes mortgage recording tax when a mortgage is recorded, plus county recording fees for the deed and mortgage. For current rules and forms, consult the New York State Department of Taxation and Finance and your county clerk.
• Buyer’s attorney. In New York, buyers commonly retain an attorney to review contracts, clear title issues, and represent them at closing. Fees vary by complexity.
• Inspections and survey. General home inspection, wood-destroying insect inspection, and other specialty inspections are typically paid before closing. A survey may be requested by you or the lender.
• Prepaids and escrow deposits. These can be some of your largest cash-to-close items. Expect prepaid homeowner’s insurance, per diem interest from closing to month end, and initial deposits into your mortgage escrow for taxes and insurance. HOA dues and move-in fees may also apply for condos or communities.

What you can negotiate as a buyer:

• Lender fees and points. Compare lenders and ask for estimates in writing. Small differences in rate and fees can change your cash due.
• Seller credits. You can request the seller cover some closing costs or fund a rate buydown, subject to loan program limits and market conditions.
• Owner’s title policy and who pays optional endorsements. Local custom varies, and you can negotiate in the contract.

Consumer protections you can rely on:

• You will receive a Loan Estimate within three business days of applying for a mortgage, then a Closing Disclosure at least three business days before closing. Review both closely and ask questions early. The CFPB explains the timing and purpose of the Closing Disclosure here: what the Closing Disclosure is and when you receive it.

Seller costs on Long Island

If you are selling, your largest expense is usually broker commission, followed by transfer taxes where applicable and attorney fees. Here are the common items:

• Real estate commission. This is typically the largest line item for sellers and is negotiated in the listing agreement. National research has historically placed combined commissions in the mid single digits as a percentage of sale price. For context, see the National Association of Realtors’ Research and Statistics.
• Transfer taxes. New York State imposes transfer taxes, and some counties or municipalities may assess additional taxes or surcharges. Who pays can be negotiated in the contract, though local custom often expects the seller to pay state and county transfer taxes unless agreed otherwise.
• Seller’s attorney. Your attorney manages contract, payoffs, and closing coordination. Fees depend on complexity and property type.
• Payoff of existing mortgage and liens. Expect principal payoff plus accrued interest and any payoff or satisfaction fees.
• Title and settlement items. You may cover certain title-related seller charges to clear any liens or judgments.
• Municipal or HOA charges. Certificates, estoppel letters, move-out fees, or final water and sewer readings may be required by your contract or municipality. Responsibility can vary and is often negotiated.

What you can negotiate as a seller:

• Commission rate in your listing agreement, informed by market conditions and your marketing plan.
• Transfer tax allocation if the buyer requests a different split. Local custom still guides expectations.
• Seller credits to help a buyer’s cash-to-close or rate buydown, if it improves your net outcome.

Nassau vs. Suffolk: key differences

Across Long Island, the framework is the same, but details change by county, town, and village. Plan for the following local variations:

• Recording and clerk fees. Deed and mortgage recording fees differ between Nassau and Suffolk, and fee schedules can change. Visit the Nassau County Clerk or the Suffolk County Clerk for current requirements.
• State and local taxes. New York State transfer and mortgage recording taxes apply, and certain municipalities may add local surcharges. For statewide rules and forms, start with the New York State Department of Taxation and Finance and confirm any local add-ons with your county clerk or title company.
• Title practices. Title insurers price by filed rates and will quote based on your contract price and loan amount. Your title company will also account for village easements or unique local recording requirements.
• Property tax proration and escrow timing. Long Island property taxes are significant and follow different calendars by town, which affects proration at closing and how much a buyer must deposit into escrow.
• Municipal certificates. Some towns or incorporated villages require certificates of compliance or municipal searches. Fees and timing vary and can affect your closing schedule.

How much to budget

You can use these planning ranges for quick estimates. Actual amounts depend on your contract price, financing, property type, and the exact county and town fees.

• Buyers with financing. Plan for about 2% to 5% of the purchase price in closing costs, not including your down payment. The lower end fits simple loans without points and modest escrows. The upper end reflects higher prepaids, large initial escrow deposits, and rate buydowns.
• Sellers. Plan for about 6% to 10% of the sale price for total costs. Commission is typically the largest single item, with attorney fees, transfer taxes, and smaller settlement items making up the balance.

Sample scenarios to make it concrete:

• Example A: $350,000 purchase
  • Buyer estimate: about $7,000 to $17,500
  • Seller estimate: about $21,000 to $35,000
• Example B: $650,000 purchase
  • Buyer estimate: about $13,000 to $32,500
  • Seller estimate: about $39,000 to $65,000
• Example C: $1,200,000 purchase
  • Buyer estimate: about $24,000 to $60,000
  • Seller estimate: about $72,000 to $120,000

Use these as a planning framework. Title premiums, mortgage recording tax, and any local transfer tax or surcharge scale with price and are set by law or filed rate. Your lender, attorney, and title company will confirm exact numbers.

What is negotiable vs. fixed

Knowing what can move and what is set helps you focus your efforts.

• Often negotiable

  • Commission rate, set in your listing agreement.
  • Seller credits toward buyer costs or rate buydown, within loan program limits.
  • Lender fees and points, by shopping and negotiating.
  • Owner’s title policy and some endorsements, depending on local custom and contract terms.

• Typically fixed at transaction time

  • State and county transfer taxes, and recording fees. Allocation can be negotiated in the contract, but rates are set by law.
  • Third-party items like estoppel fees or municipal certificates. Providers set these charges.

When you see final numbers

You should not be guessing at the closing table. If you are financing, you will receive a Closing Disclosure at least three business days before closing that shows your exact cash to close, all lender charges, and prepaids. The CFPB details the Closing Disclosure timeline and structure here: what the Closing Disclosure is and when you receive it. Sellers receive a final settlement statement at or before closing that lists payoffs, taxes, commission, and net proceeds.

Steps to keep costs under control

Use this simple checklist to reduce friction and avoid surprises.

• Get early estimates. Ask for a Loan Estimate from at least two lenders and request a preliminary title quote. This frames your baseline within a few days of application.
• Compare rate and fee tradeoffs. A small lender credit or a partial point can shift your cash to close. Have your lender model both options.
• Verify county specifics. Check current recording and clerk fees for your county. Start with the Nassau County Clerk or the Suffolk County Clerk.
• Time your closing wisely. Closing near month end can reduce prepaid interest. Be mindful of property tax cycles when planning escrow deposits and prorations.
• Clarify HOA and municipal requirements early. For condos or village properties, order certificates and estoppels early to avoid rush fees and delays.
• Align credits with the loan program. If you negotiate seller credits, confirm caps and acceptable uses with your lender before you sign.

Why work with a local expert

On Long Island, small differences in county fees, tax calendars, and title practices can change your net by thousands. You want an advisor who can spot those variables and structure the deal around them. Our team pairs deep North Shore market knowledge with a mortgage banking background, which means you get clean timelines, precise cash-to-close planning, and smooth coordination between lender, attorney, and title. That is especially valuable for higher price brackets, where transfer and title charges scale quickly.

If you would like, we can prepare a personalized buyer cash-to-close estimate or a seller net sheet for your specific address and price. We will go line by line through Nassau vs. Suffolk differences and confirm county and state items before you sign.

Ready to run your numbers and move with confidence? Schedule Your Private Consultation with Kieran Rodgers.

FAQs

What are typical buyer closing costs on Long Island?

• For financed purchases, plan for about 2% to 5% of the purchase price, covering lender fees, title and recording, mortgage taxes, and prepaids.

What are typical seller closing costs on Long Island?

• Plan for about 6% to 10% of the sale price, with commission as the largest item, plus transfer taxes, attorney fees, and smaller settlement charges.

Who pays title insurance in New York?

• The lender’s policy is typically paid by the buyer when there is a mortgage; the owner’s policy is optional and often paid by the buyer unless negotiated otherwise.

When will I see my final closing numbers?

• Buyers receive a Closing Disclosure at least three business days before closing, and sellers receive a final settlement statement at or before closing.

Are there county-specific fees in Nassau and Suffolk?

• Yes. Recording fees and certain local requirements vary by county and by town or village. Check the county clerk sites for current schedules.

Can I roll closing costs into my mortgage?

• Some lender fees can be financed, subject to program limits and loan-to-value rules; escrow deposits and certain prepaids are usually paid at closing. Consult your lender for options.