By Eric Berman, REALTOR® | The Eric Berman Team at Compass
TL;DR:
Plan on seven to nine percent of the sale price, with commission the largest component by a wide margin. The line that most changed is the buyer-side commission decision, which since August 2024 belongs to the seller rather than being posted automatically — on a $900,000 sale that's roughly $22,500. And where the property sits matters more than sellers expect: a Queens seller pays a city transfer tax of roughly 1.425 percent that a Nassau or Suffolk seller doesn't, which on a $900,000 sale is about $12,800 of difference on one line.
The Largest Cost, and the One That Changed
Commission accounts for most of what comes off the top, and how it works is different from what most sellers remember.
Until August 17, 2024, buyer-agent compensation was posted on the MLS and offered essentially automatically as a condition of listing. That ended with the Sitzer/Burnett settlement. Compensation is now negotiated within each individual offer, and buyers sign written agreements with their agents before touring homes.
The buyer-side decision is now the seller's. On a $900,000 sale, two and a half percent is roughly $22,500 — the second-largest line on the settlement statement after the listing commission.
The listing side is separately negotiable and always was, though the range has moved. Fee-negotiated listing commissions in the one and a half to two percent range have become common on Long Island.
The two decisions interact. Offering nothing on the buyer side lowers the stated cost and can narrow the pool, particularly at price points where buyers have little cash flexibility left after down payment and closing costs. The framework for comparing what each offer actually nets works through how compensation stacks against price — two offers at the same number can produce very different proceeds.
Where the Property Sits Changes the Total
This is the piece general Long Island cost content misses, and it's substantial.
Nassau and Suffolk sellers pay the New York State Transfer Tax at four dollars per thousand of the sale price — 0.4 percent — filed through Form TP-584. On a $900,000 sale that's $3,600.
Queens sellers pay that plus the New York City Real Property Transfer Tax, which runs 1 percent below $500,000 and 1.425 percent at or above, filed separately through Form NYC-RPT. On the same $900,000 sale the two together come to roughly $16,400.
That's about $12,800 of difference on a single line, and it's the largest cost distinction within the market. A Bayside seller using Nassau County cost guidance is working from a number that's too low by that amount. The full Queens breakdown covers the city side; the Nassau version covers what a Levittown seller doesn't pay.
One threshold worth noting even though the seller doesn't pay it. The Mansion Tax applies at one percent to residential sales above one million dollars, paid by the buyer in cash at closing. It's near-universal in Manhasset and rare in Levittown, and it constrains what buyers can offer — which makes it a seller consideration even though it isn't a seller cost. Nassau faces a flat one percent; New York City applies progressive tiers.
The Fixed Costs
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 run roughly $500 to $1,500 combined — the mortgage payoff statement, lien discharges, and recording fees. Where an old undischarged mortgage or lien surfaces, resolving it adds attorney time.
Mortgage payoff comes off the top. Prepayment penalties are rare, since federal law has prohibited them on residential qualified mortgages originated after January 10, 2014.
Property tax and utility adjustments settle at closing rather than being a cost, though they affect the wire in either direction depending on where the billing cycle sits.
The Costs That Don't Appear on Fee Lists
Four items account for most of the gap between a seller's model and the actual settlement statement.
Open permit resolution. The most common unplanned expense on Long Island. The buyer's attorney orders municipal searches after contracts are signed, and whatever the governing authority has on file comes back — an unclosed permit, an unpermitted addition, a certificate of occupancy that doesn't match the house. Resolving it can run several thousand dollars and six to ten weeks, landing with a mortgage clock running. Which office holds the record varies: the Town of Hempstead for Levittown, several incorporated villages for Port Washington and Manhasset, the Department of Buildings for Bayside. The full picture of how permit issues resolve covers what each type costs. A phone call before listing moves this from a surprise to a line item.
Post-inspection concessions. Typically $3,000 to $15,000, negotiated after contracts are signed when the seller has less leverage than at the offer stage. A pre-listing inspection substantially reduces the exposure.
Carrying costs. Every month on market costs mortgage, taxes, insurance, utilities, and maintenance — frequently $4,000 to $5,500 monthly at entry price points and $7,000 to $9,000 in higher-priced areas. Three extra months can exceed a seller's entire preparation budget, which is why it belongs next to every pricing conversation.
Septic and well inspections. Required in certain Long Island towns, particularly where properties aren't on municipal systems. Worth confirming what applies locally rather than assuming.
Two Situations That Change the Math
Sellers who have left New York. A nonresident seller owes an estimated payment at closing of 8.82 percent 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, refundable where the real number comes in lower — but it reduces the wire, and sellers who have committed those proceeds to a purchase elsewhere get caught short.
Long-held homes. A home owned for decades may have appreciated past the primary-residence exclusion — $250,000 for a single filer, $500,000 filing jointly, both fixed since 1997. Improvement records across the ownership period add to basis and directly reduce taxable gain, which makes finding them worth real money. The full treatment of how gain is calculated covers the mechanics.
A $900,000 Sale, Modeled Three Ways
Same price, same commission structure at 2 percent listing and 2.5 percent buyer side, same attorney and title costs — varying only by location.
ItemNassau / SuffolkQueensCommission at 4.5%$40,500$40,500NY State Transfer Tax$3,600$3,600NYC Real Property Transfer Tax—$12,825Attorney fee$2,500$2,500Title, payoff, recording$1,000$1,000Total$47,600$60,425As a percentage5.3%6.7%
Add preparation, a concession reserve, and realistic carrying costs, and both land in the seven to nine percent range — with Queens at the upper end.
The commission structure moves the number most. The same Nassau sale with no buyer-side contribution comes to about $25,100 — but that's a decision with consequences for the buyer pool, not free money.
Where to Start
Build the model with the correct transfer taxes for the property's location, both commission decisions, attorney fees, and title costs. Add preparation and a concession reserve. Assume a longer listing period than you hope for and price carrying costs accordingly. Call the building department that governs the property before allocating a preparation budget. Decide the buyer-agent compensation question before offers arrive. And if you've left New York or owned the home for decades, talk to a CPA before setting a closing date.
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 dollar figure on an actual price.
The Honest Bottom Line
Seven to nine percent, most of it commission, with location deciding where in that range.
Two things sellers most often get wrong. They describe commission using a structure that ended in August 2024, when the buyer-side decision is now theirs and worth five figures. And they use a single Long Island number when a Queens sale and a Nassau sale differ by roughly $12,800 on one line at a typical price point.
What catches people beyond the fee list is the permit nobody checked and the months on market nobody budgeted. Both are addressable before listing, and both cost more to discover later. Sellers wanting to work through what these numbers 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 transaction costs change. Confirm specifics with a licensed New York real estate attorney and a CPA.
FAQs
What percentage do Long Island sellers pay in closing costs?
Seven to nine percent of the sale price, with commission the largest component. On a $900,000 sale in Nassau or Suffolk, a structure of 2 percent listing plus 2.5 percent buyer side, with transfer tax, attorney fees, and title costs, comes to roughly $47,600 — about 5.3 percent before anything discretionary. Preparation spending and a concession reserve bring the total into range. The same sale in Queens comes to about $60,425, or 6.7 percent, because of the city transfer tax.
Is commission still split between the buyer's and seller's agents?
Not automatically, and this changed on August 17, 2024. Buyer-agent compensation is no longer posted on the MLS or offered as a condition of listing — it's negotiated within each offer, and buyers sign written agreements with their agents before touring. The seller now decides whether to contribute and how much, which on a $900,000 sale is roughly $22,500 at two and a half percent. The listing side is separately negotiable, with fee-negotiated commissions at one and a half to two percent increasingly common.
Do Queens sellers pay more than Nassau sellers?
Substantially, on one line. Both pay the New York State Transfer Tax at four dollars per thousand. Queens sellers also pay the New York City Real Property Transfer Tax — 1 percent below $500,000 and 1.425 percent at or above, filed separately. On a $900,000 sale that's roughly $12,800 more than a Nassau or Suffolk seller pays. It's the largest cost distinction within the Long Island market, and a Queens seller using general Long Island guidance is working from a number that's too low.
What closing costs do sellers forget to budget for?
Four. Open permit resolution, the most common unplanned expense — municipal searches happen after contracts are signed, and resolving an unclosed permit can run several thousand dollars and six to ten weeks. Post-inspection concessions, typically $3,000 to $15,000. Carrying costs, which run $4,000 to $9,000 monthly depending on price point, meaning three extra months on market can exceed the entire preparation budget. And septic or well inspections, required in certain Long Island towns.
What if I've already moved out of New York?
You'll owe an estimated payment at closing of 8.82 percent 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. Raise it 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
