Buying in Williamsburg and noticing that your “cash to close” is a lot more than your down payment? You’re not alone. Between taxes, title insurance, lender fees, and condo items, closing costs can surprise even seasoned buyers. This guide breaks down what you’ll pay, what changes if you buy new development, and how to budget with confidence. Let’s dive in.
What closing costs include
Closing costs are the one-time expenses you pay at closing. They are separate from your down payment and your monthly carrying costs. In Williamsburg, they usually include taxes, title and recording fees, your attorney, lender charges if you finance, and condo-related items like move-in fees and prorations. Your final numbers depend on price, financing, and whether you’re buying a sponsor unit or a resale.
Big taxes to know
Mansion tax
If your purchase price is $1,000,000 or more, New York State charges a 1% mansion tax on the full price. You typically pay this at closing. On a $1,200,000 condo, that is $12,000. If you are near the $1,000,000 mark, plan for this early so it does not derail your cash plan.
State and city transfer taxes
New York State and New York City each impose transfer taxes on property transfers. The exact rates vary by property type and price. In many Williamsburg condo resales, these taxes are part of the standard closing costs, and contract language can affect who pays which portions. Always have your attorney confirm the current rates and the allocation in your contract.
Mortgage recording tax
If you finance, recording your mortgage in New York usually triggers mortgage recording taxes. These are separate from transfer taxes and are based on your loan amount. Your lender or attorney will size this for you once you have a target price and loan amount.
Title and recording fees
Title insurance protects your ownership and your lender’s security interest. You typically buy an owner’s policy and a lender’s policy in NYC. Premiums are tied to purchase price and loan size, so they rise with higher-priced Williamsburg condos. You will also see required recording fees for the deed and mortgage.
Attorney and closing agent
You will hire a buyer’s attorney in NYC. Fees are usually a flat amount that depends on the deal type and complexity. New-development and sponsor purchases often involve more document review, which can increase legal fees. The title company or settlement agent will also charge standard search and closing fees.
Lender costs if you finance
If you take a mortgage, expect lender charges. These can include an origination or processing fee, appraisal, credit report, and underwriting. You will also prepay interest for the rest of the month you close, and you may fund escrow reserves for taxes and insurance.
Condo prepaids and adjustments
Condo closings include prorations and association fees. You may reimburse the seller for any prepaid common charges or real estate taxes based on the closing date. Many buildings charge move-in or transfer fees. Some require a reserve or capital contribution at closing. Sponsor sales can include extra documentation or offering-plan fees.
Sponsor vs resale closings
Who pays what
In resales, buyers typically pay items like mansion tax when applicable, title insurance, mortgage recording tax if financing, and their own attorney. In sponsor sales, the offering plan and contract can shift who pays certain transfer taxes or fees. Read the allocation language closely with your attorney.
Timeline and process
Sponsor closings often depend on the building’s approvals and certificate of occupancy, which can extend timelines. Documents are controlled by the sponsor’s counsel and closings can occur in batches. Resale closings are often faster once you have a mortgage commitment and clear title.
Extra sponsor documents
Offering plan review, sponsor riders, and cure provisions add steps and can affect fees. Assignments of sponsor contracts can also carry different transfer tax treatment. Your attorney will advise on the specific impact.
How much to budget in Williamsburg
A practical rule of thumb in NYC is to budget 2% to 4% of the purchase price for buyer closing costs on a financed resale. Smaller purchases can skew higher in percentage terms because some fees are fixed. If your price is $1,000,000 or more, add the 1% mansion tax to your baseline.
Example A: $800,000 resale, financed
- Estimated total buyer closing costs: about 2% to 3% → $16,000 to $24,000
- No mansion tax at this price.
Example B: $1,200,000 resale, financed
- Baseline costs: 2% to 4% → $24,000 to $48,000
- Plus mansion tax: 1% of $1,200,000 = $12,000
- Rough total range: $36,000 to $60,000, or about 3% to 5% of price
Example C: $1,200,000 sponsor vs resale
- Sponsor contracts sometimes shift certain transfer taxes to or from the buyer, which can change your cash-to-close. Sponsor deals may also include added administrative and offering-plan fees. Net effect depends on the specific contract, so have your attorney prepare a sponsor-specific estimate early.
All figures above are illustrative. Always confirm exact numbers with your attorney, lender, and title company.
Build your estimate
Use this checklist to request a closing cost worksheet and avoid surprises.
Required taxes
- Mansion tax at or above $1,000,000 (buyer)
- State and city transfer taxes (allocation depends on contract)
- Mortgage recording tax if financing (buyer)
Lender and mortgage
- Origination or processing fee, appraisal, credit report, underwriting (buyer)
- Prepaid interest and potential escrow reserves (buyer)
Title and recording
- Owner’s and lender’s title insurance policies (buyer)
- Title search and recording fees (buyer)
Attorney and settlement
- Buyer’s attorney flat fee (buyer)
- Title or settlement closing fees (buyer)
Condo items
- Common charge and tax prorations (buyer or seller credit depending on timing)
- Move-in or transfer fees, and any reserve or capital contribution (buyer)
Other
- Optional inspections or engineering reviews (buyer)
Pro tip: ask for both dollar and percent-of-price views. That makes it easier to compare units at different price points.
Local tips for Williamsburg buyers
Williamsburg has many new-development condos, so sponsor contracts and offering plans come up often. Review tax allocation and fees line by line with your attorney. Two-bedroom and larger units frequently cross the mansion tax threshold, so add that 1% early in your budget. Title companies familiar with Brooklyn and Kings County records can provide faster, clearer quotes. If your cash is tight, focus on the biggest line items first, like mansion tax, title insurance, and mortgage recording tax.
Next steps
- Share your target price and financing plan with your attorney and lender to size taxes and lender fees.
- Ask the title company for a preliminary title and premium quote tied to your price and loan.
- For sponsor units, request a draft closing cost worksheet from the offering plan and contract.
- Build a cushion for prepaids and unforeseen administrative fees.
If you want a clear, Williamsburg-specific estimate before you make an offer, connect with The Horizon Team. We’ll walk you through sponsor versus resale scenarios and help you plan your cash to close with confidence.
FAQs
Who pays the mansion tax in NYC condo purchases?
- The buyer pays the 1% mansion tax at closing when the purchase price is $1,000,000 or more. Confirm current law with your attorney.
Do buyers always pay New York transfer taxes on condos?
- Often yes in resales, but sponsor contracts sometimes shift one or more transfer taxes. Check your contract and offering plan.
Are title insurance and attorney fees negotiable for buyers?
- Attorney fees are set by each firm and can vary by deal type. Title premiums follow schedules, and providers may differ on smaller charges. An owner’s policy is optional but customary and recommended.
How much should I budget for closing if I’m financing a Williamsburg condo?
- A common rule of thumb is to budget 2% to 4% of the purchase price, plus the 1% mansion tax if your price is $1,000,000 or more.
Why do sponsor closings sometimes take longer than resales?
- Sponsor closings can depend on offering-plan milestones, certificate of occupancy, and lender approvals for the new building, which can extend timelines.
