Planning to buy in Merrick and wondering how much cash you need beyond your down payment? You are not alone. Closing costs can feel opaque, especially in Nassau County where taxes and lender requirements add up quickly. In this guide, you will learn what typical buyer closing costs look like in Merrick, how New York’s transfer and mansion taxes work, what to expect if you are financing or buying a condo or co-op, and how to estimate your cash to close. Let’s dive in.
What closing costs cover in Merrick
Closing costs are the one-time expenses you pay at closing to complete your purchase. They include taxes and government fees, lender and appraisal charges, title insurance and settlement services, attorney fees, inspections, and your initial escrow deposits for taxes and insurance. Some items are fixed by law, while others vary by lender, property type, and negotiations with the seller.
Set your expectation that exact numbers come from your lender’s Loan Estimate and the title company’s quote. You can tighten your estimate early by asking for both as soon as you are under contract.
Taxes and government fees in Nassau
New York has specific transfer taxes and filing rules that affect your bottom line at closing in Merrick.
NY State real property transfer tax
New York State imposes a real property transfer tax equal to 0.4% of the sale price. This is a statutory tax applied to most real estate transfers. The responsibility for paying can be allocated in your contract, but the tax amount itself is set by law.
NY State “mansion tax” at $1,000,000+
If your purchase price is $1,000,000 or more, New York State applies an additional 1% tax commonly called the mansion tax. It is typically paid by the buyer at closing unless negotiated otherwise. Plan for this early if you are shopping near or above the $1,000,000 mark.
Recording and mortgage-related filings
You will pay county clerk recording fees to file the deed and, if you finance, your mortgage. Some transactions also involve a mortgage recording tax depending on the county and loan structure. In Nassau County, always verify current recording fees and any mortgage recording tax implications with the county clerk and your lender before closing.
Mortgage and lender fees
If you are financing your purchase, expect several lender-related costs disclosed on your Loan Estimate.
- Loan origination or application fee. Often a percentage of the loan amount or a flat fee. This varies by lender.
- Discount points. Optional prepaid interest to reduce your rate. One point equals 1% of the loan amount.
- Appraisal. Required by most lenders. Budget several hundred dollars, with single-family homes in Nassau often toward the higher end of national ranges.
- Credit report, processing, and underwriting. Usually smaller fixed amounts.
- Private mortgage insurance (PMI). Required on many conventional loans with less than 20% down. This may be monthly, upfront, or split premium depending on your loan program.
- Lender title policy endorsements. If you have a mortgage, your lender will require a lender’s title policy and may require endorsements. These appear in your title quote.
Title, settlement, and attorney costs
Title and legal support are standard in New York closings.
- Owner’s title insurance and title search. In New York it is common for buyers to pay for the owner’s title policy. Premiums are based on purchase price and are typically regulated. The title search and exam are included in the title company’s quote.
- Lender’s title insurance. Required when there is a mortgage. Usually paid by the buyer.
- Settlement or closing fee. Covers preparation of closing statements, funds disbursement, and document recording.
- Attorney fees. New York closings commonly involve attorneys for both sides. Fees vary by firm and complexity, and for standard residential purchases are often in the low thousands.
- Recording fees. Paid to the Nassau County Clerk to record the deed and, if applicable, the mortgage. These vary by document type and page count.
Inspections and surveys
Protect your investment by making informed choices during due diligence.
- Home inspection. A standard buyer expense. Price depends on property size and scope.
- Specialty inspections. Pest or termite, radon, chimney, sewer scope, oil tank, or environmental checks as needed based on the home’s age and systems.
- Survey. Sometimes requested by lenders or title companies for certain properties. Costs vary.
Prepaids and escrow in Nassau
Your “cash to close” includes prepaids that fund your future housing costs.
- Property tax proration. You will pay your share of property taxes from the day you close through the period covered by the seller’s latest payment. Nassau County property taxes are often higher than national averages, which also increases required reserves.
- Escrow reserves. Lenders commonly collect several months of property tax and homeowners insurance to fund your escrow account at closing.
- Homeowners insurance. Many lenders require the first-year premium paid at closing, plus a reserve deposit for the escrow.
- Prepaid interest. Covers mortgage interest from your closing date through the end of that month.
Condo and co-op specifics in Merrick
If you are buying a condo or co-op, plan for association or board fees on top of standard closing costs.
- Application and move-in fees. Many associations charge fixed application and move-in fees. Budget several hundred dollars depending on the building.
- Condo resale documents or estoppel. The association may charge for preparing required documentation.
- Co-op board processing and related fees. Co-ops often have application, processing, and move-in charges. A flip tax, if any, is often a seller cost, but confirm building rules.
- Title insurance nuance. Co-op buyers typically purchase shares in a corporation with a proprietary lease rather than real property, so title insurance does not apply the same way as for a fee simple home. Condo purchases are real property, so title insurance is standard.
Also consider the building’s financial health, reserves, and policies because they affect your approval and your monthly costs.
How much to budget
Your total will depend on price, loan amount, points, property type, and whether you are over $1,000,000. Some buyers estimate a few percent of the purchase price for closing costs, but that range can expand or contract based on your choices and taxes. The most reliable way to plan is to request two documents early:
- A Loan Estimate from your lender for lender fees, mortgage-related charges, and prepaids.
- A title quote for title insurance, settlement, and recording fees.
If you are near $1,000,000, include the 1% mansion tax in your budget. If you will finance, include appraisal, lender fees, and initial escrow deposits.
Examples: how the taxes work
Here is how New York’s statutory transfer taxes look at two price points. All other line items should be quoted by your lender, title company, and attorney.
Example: $600,000 single-family purchase
- NY State transfer tax at 0.4%: $2,400.
- Mansion tax: Not applicable because the price is under $1,000,000.
- Other costs: Lender fees, appraisal, title, attorney, recording, inspections, and escrows vary. Obtain quotes for accurate totals.
Example: $1,200,000 purchase
- NY State transfer tax at 0.4%: $4,800.
- NY State mansion tax at 1%: $12,000.
- Combined statutory amount: $16,800 before title, recording, lender, and other costs.
These figures help you anchor the fixed tax components while you gather quotes for the rest.
Timeline and who pays what
Understanding the flow helps you avoid last-minute surprises.
- Contract to underwriting. After you sign, attorneys review and the title order is placed, then lender underwriting begins. This often takes 5 to 10 days to get underway.
- Due diligence. You schedule inspections. Your lender orders the appraisal. Your attorney reviews title, municipal records, and any condo or co-op documents.
- Pre-closing. Title is cleared, the lender issues your final approval, and your Closing Disclosure arrives with the detailed numbers. The title company prepares the settlement statement and recording package.
- Closing day. You bring certified or wired funds and valid ID, sign your mortgage and closing documents, and receive keys. The deed and mortgage are recorded afterward.
Who pays what is part custom and part negotiation. In New York, buyers typically cover lender costs, appraisal, title insurance, mortgage-related recording, and prepaids. Sellers commonly pay broker commissions and may agree to concessions. The mansion tax is typically paid by the buyer unless negotiated otherwise in the contract.
Quick closing-day checklist
Use this to feel organized and calm on closing day.
- Valid photo ID.
- Certified funds or wired funds per the title company’s written instructions.
- Homeowners insurance declarations page and mortgagee clause.
- Final Closing Disclosure and settlement statement reviewed in advance.
- Wire instructions verified by phone with the title company to prevent fraud.
- Any required HOA, condo, or co-op documents and confirmations of completed application steps.
Final thoughts for Merrick buyers
Buying in Merrick means planning for both one-time closing costs and ongoing ownership expenses. The most accurate path is to pair the fixed state tax calculations with current quotes from your lender, attorney, and title company. If you are considering a condo or co-op, add the association or board-related fees to your plan and confirm building policies early.
If you want a calm, white-glove process with clear numbers and proactive coordination, let’s connect. Reach out to Shira Real Estate to request your Loan Estimate and title quote checklist so you can move forward with confidence.
FAQs
What are typical buyer closing costs in Merrick, Nassau County?
- Your total varies by price, financing, and property type. Plan for state transfer tax at 0.4%, possible 1% mansion tax at $1,000,000 or more, plus lender, title, attorney, inspection, recording, and escrow items.
Who pays New York’s mansion tax on homes at $1,000,000 or more?
- The 1% mansion tax is typically paid by the buyer at closing unless the contract allocates it differently. Confirm this with your attorney during negotiations.
Are property taxes collected at closing for Nassau homes?
- Yes. You pay a prorated share from your closing date forward. If you finance, your lender usually collects several months of property tax and insurance to fund your escrow account.
How can I get exact closing cost numbers before I close?
- Request a Loan Estimate from your lender within three business days of applying and a title quote from the title company. Your final Closing Disclosure will reflect the precise totals.
Do condo and co-op purchases have extra buyer fees in Merrick?
- Yes. Expect application and move-in fees, plus possible association document charges for condos or processing fees for co-ops. Co-ops are structured differently, so title insurance does not apply the same way.
