Buying a home in Queens is an exciting milestone 🎉, but many first-time buyers are caught off guard by the hidden costs that go far beyond the down payment and monthly mortgage. As a real estate attorney serving Queens and the greater NYC area, I’ve seen many clients unprepared for these additional expenses — some of which can add thousands to your closing costs.

Here’s a breakdown of the most common hidden costs you should be aware of, so you can budget wisely and avoid last-minute surprises. 💼

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1️⃣ Title Insurance

Cost Range: $2,000–$5,000 (varies based on purchase price)

Title insurance protects you (and your lender) against past ownership claims, liens, or legal issues involving the property title. It’s a one-time fee and often misunderstood until closing day.

2️⃣ Mansion Tax

Cost: 1% of the purchase price for homes $1 million or more

Even in Queens, home prices are rising. Cross the $1M threshold, and you’ll pay a $10,000+ mansion tax — even if your home is $1,000,001. 😬

3️⃣ Transfer Taxes

Sellers usually pay NYC and NYS transfer taxes, but buyers of new construction or sponsor units may end up responsible for them too — adding up to over 2% of the purchase price!

4️⃣ Bank Fees & Mortgage Costs

Financing your purchase? Expect:

• 📋 Application and underwriting fees
• 🏦 Mortgage recording tax (~1.8%–1.925% of loan amount)
• 🔻 Discount points (optional)

These fees can significantly impact your cash-to-close estimate.

5️⃣ Attorney Fees

In NYC, hiring a real estate attorney is essential. Budget $2,000–$3,000 for expert contract review, negotiation, and closing support. Don’t go it alone!

6️⃣ Co-op or Condo Fees

If you’re buying a co-op or condo, watch for:

• 📑 Application and processing fees
• 📦 Move-in/move-out deposits
• 💸 Flip taxes and escrow reserves

These vary by building and can cost thousands.

7️⃣ Home Inspection & Appraisal

Plan to pay for both:

• 🔍 Home Inspection: $400–$700
• 📏 Appraisal: $500–$1,000

These are key to protecting your investment.

8️⃣ Prepaid Adjustments

At closing, you may reimburse the seller for:

• 📅 Property taxes
• 🏢 Common charges
• 🛢️ Fuel oil or utilities

These prorated costs are often overlooked in budgeting.

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🎯 Final Thoughts

Buying a home in New York is a big move — don’t let hidden costs catch you off guard. With a trusted real estate attorney by your side, you’ll know what to expect every step of the way. 🧭

Need help navigating your first home purchase in Queens?
📞 Contact our office today for a consultation — we’ll help you close with confidence!