By Eric Berman, REALTOR® | The Eric Berman Team at Compass
TL;DR:
A Bayside seller should plan on roughly seven to nine percent of the sale price coming off the top, with commission the largest piece and the New York City Real Property Transfer Tax the item that makes selling here different from selling in Nassau. That city tax runs 1.425% on sales at or above $500,000, paid by the seller, on top of the state's four dollars per thousand. On a $950,000 sale the two together come to roughly $17,300 — against about $3,800 for a Nassau seller at the same price. Anyone using Long Island cost content to model a Queens sale is working from the wrong number.
The Two Transfer Taxes
Bayside sellers pay two transfer taxes, filed separately, and the second one is the reason Nassau cost guidance doesn't transfer across the county line.
New York State Transfer Tax runs four dollars per thousand of the sale price — 0.4% — paid by the seller and filed through Form TP-584. On a $950,000 sale that's $3,800.
The New York City Real Property Transfer Tax applies to property within the five boroughs. For residential sales it runs 1% below $500,000 and 1.425% at $500,000 or above, paid by the seller and filed through Form NYC-RPT. On a $950,000 sale that's $13,537.50.
Two filings, not one, and the attorney handles both.
The $500,000 line is a cliff, not a bracket. A sale at $500,001 pays 1.425% on the entire amount rather than 1% on the first $500,000 and the higher rate on the excess. The difference between selling at $499,000 and $501,000 is roughly $2,100 in additional tax on a $2,000 higher price — worth knowing for anyone pricing near that threshold, though most Bayside sales sit well above it.
Combined, a $950,000 Bayside seller pays about $17,300 in transfer taxes. A Nassau seller at the same price pays $3,800. That $13,500 difference is the single largest distinction between the two markets on the settlement statement.
What Actually Comes Off the Top
Transfer taxes are the local wrinkle. Commission is the bigger number, and any cost estimate that treats it as a footnote is understating the picture badly.
Commission is negotiable on both sides and always was. Fee-negotiated listing commissions in the one and a half to two percent range have become common, and buyer-agent compensation — where a seller chooses to offer it — typically runs two to two and a half percent. On a $950,000 sale, a combined four percent is $38,000. That's more than double the transfer taxes.
Since August 17, 2024, the buyer side is a separate decision negotiated within each offer rather than posted on the MLS. Sellers who don't decide their position before offers arrive end up negotiating it under pressure, and it's now frequently the largest single term after price. The framework for comparing what each offer nets works through how compensation stacks against price.
Attorney fees generally run $1,500 to $3,500 for a standard residential transaction, higher where an estate, a divorce, an out-of-state seller, or complicated title history is involved.
Title, payoff, and recording typically run $500 to $1,500 combined — the mortgage payoff statement, lien discharges, and document recording fees. Where an old lien or an undischarged mortgage turns up, resolving it adds attorney time.
Property tax proration settles at closing rather than being a cost, though it affects the wire in either direction depending on where the billing cycle sits.
A $950,000 Bayside Sale, Modeled Honestly
ItemAmountCommission — 2% listing, 2.5% buyer side$42,750NYC Real Property Transfer Tax at 1.425%$13,537.50New York State Transfer Tax at $4 per $1,000$3,800Attorney fee$2,500Title, payoff, and recording$1,000Total$63,587.50
That's roughly 6.7% of the sale price, before any pre-listing preparation or post-inspection concessions.
Add preparation — most Bayside sellers land between $8,000 and $20,000 — and a concession reserve, and the realistic figure lands between seven and nine percent. A seller who models less than that will be short.
For comparison, the same $950,000 sale in Nassau County, with identical commission and attorney costs, comes to roughly $50,050 — about 5.3%. The entire difference is the city transfer tax.
The Mansion Tax, Which the Buyer Pays and the Seller Should Understand
New York imposes a Mansion Tax on residential sales above one million dollars, paid by the buyer. It doesn't appear on the seller's ledger, and it matters anyway.
New York City applies progressive tiers, enacted in 2019, that step up at higher price points — unlike Nassau County, which faces a flat one percent above the million-dollar threshold. So a Bayside buyer purchasing above one million faces a different structure than a buyer in Manhasset at the same price.
Why a seller should care: it's cash the buyer brings to closing, unfinanceable, competing directly with their down payment. A buyer at $1,010,000 owes something a buyer at $999,000 doesn't, which constrains what they can offer and reinforces the search-band logic covered in how to choose a listing price in Bayside — the one-million line is both a filter boundary and a tax threshold.
Two Items That Catch Specific Sellers
Sellers who have left New York. A nonresident seller owes an estimated payment at closing of 8.82% of net gain, filed on Form IT-2663 and submitted with the deed. It's a prepayment against actual New York State income tax liability rather than an additional tax, and it's refundable where the real number comes in lower — but it reduces the wire. Sellers who have already committed those proceeds to a purchase elsewhere get caught. The full picture of selling from out of state covers the rest of the logistics.
Sellers with an unresolved permit. Not a closing cost in the usual sense, but it becomes one. The buyer's attorney orders searches from the New York City Department of Buildings, and an open permit or a certificate of occupancy that doesn't match the house surfaces there. Resolving it under a contract deadline costs more than resolving it beforehand, and the fee is the smaller part — the delay is the expensive part. The full treatment of how permit issues resolve covers the mechanics.
What the Attorney Actually Does Here
New York doesn't compel a seller to retain counsel by statute. What it does is reserve contract drafting and negotiation to licensed attorneys, which makes attorney involvement universal in practice — no agent and no title company can perform that work.
For closing costs specifically, the attorney handles both transfer tax filings, coordinates the title search and mortgage payoff, resolves whatever the searches turn up, and prepares the settlement statement showing every line. That statement is where a seller finds out whether their model was right.
Which is the argument for building the model early and reviewing it with counsel before a price is set rather than reading it for the first time three days before closing. The case for engaging an attorney before listing applies here as it does anywhere in New York.
Where to Start
Build the model with both transfer taxes included — the state's four dollars per thousand and the city's 1.425% — plus commission at whatever structure you intend, attorney fees, and title and payoff costs. Add preparation spending and a concession reserve. Decide the buyer-agent compensation question before offers arrive. If you've moved out of New York, ask a CPA about the IT-2663 obligation before setting a closing date. And call the Department of Buildings about permits before listing, since that's the cost that starts small and grows.
Sellers wanting a current read on where the home sits can start with a quiet look at present value — the percentage matters less than the actual dollar figure on an actual price.
The Honest Bottom Line
Seven to nine percent, most of it commission, with the city transfer tax as the piece that separates Bayside from Nassau.
That last point deserves emphasis because it's the most common modeling error here. A Bayside seller reading Long Island closing-cost content — including most of what's published about Nassau County — is looking at a number roughly $13,500 too low on a $950,000 sale. The tax is unavoidable, it's not negotiable, and it belongs in the model from the first conversation rather than appearing on the settlement statement.
Sellers wanting to work through what these figures look like on their own property, with no pressure attached, are welcome to start that conversation whenever it suits them.
This is general information, not legal, tax, or financial advice. Transfer tax rates, thresholds, and filing requirements change. Confirm specifics with a licensed New York real estate attorney and a CPA.
FAQs
What percentage of the sale price do Bayside sellers pay in closing costs?
Realistically seven to nine percent including commission, which is the largest single item and which some cost estimates leave out entirely. On a $950,000 sale, a typical structure produces roughly $63,500 before preparation spending or post-inspection concessions — about 6.7%, with preparation and a concession reserve bringing the total into the seven to nine percent range. The Nassau County equivalent at the same price is closer to 5.3%. The entire difference is the New York City Real Property Transfer Tax.
How much is the NYC transfer tax when selling in Bayside?
For residential sales, 1% below $500,000 and 1.425% at $500,000 or above, paid by the seller and filed through Form NYC-RPT. On a $950,000 sale that's $13,537.50. It's charged in addition to the New York State Transfer Tax of four dollars per thousand, which on the same sale is $3,800 and is filed separately through Form TP-584. Two filings, both handled by the attorney. Note that the $500,000 line is a cliff — a sale just above it pays the higher rate on the entire amount.
Does the Mansion Tax work the same in Queens as in Nassau County?
No. The Mansion Tax applies to residential sales above one million dollars and is paid by the buyer, but the structure differs. Nassau County faces a flat one percent. New York City, including all of Queens, faces the progressive tier structure enacted in 2019, which steps up at higher price points. Sellers should account for it because it's unfinanceable cash the buyer brings to closing, competing with their down payment and constraining what they can offer — particularly for homes priced near the threshold.
Do I need an attorney to sell a home in Bayside?
Effectively yes. New York doesn't compel a seller to retain counsel by statute, but it reserves contract drafting and negotiation to licensed attorneys — no agent and no title company can do that work, which makes attorney involvement universal. Fees generally run $1,500 to $3,500 for a standard residential transaction. On closing costs specifically, the attorney handles both transfer tax filings, coordinates title and payoff, and prepares the settlement statement. Engaging one before listing rather than after an offer allows the cost model to be built early.
What if I've already moved out of New York?
You'll owe an estimated payment at closing of 8.82% of net gain, filed on Form IT-2663 and submitted with the deed. It isn't an additional tax — it's a prepayment against your actual New York State income tax liability, refunded when you file if the real number comes in lower. The practical issue is timing: it reduces the amount wired at closing, which catches sellers who have already committed those proceeds to a purchase elsewhere. Worth raising with a CPA before a closing date is set.
By Eric Berman, REALTOR® | The Eric Berman Team at Compass
Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com
