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Survey: New York Home Buyers Pay Highest Closing Costs

5:14 PM, Jul 19, 2011   |    comments
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BUFFALO, NY - Hold onto your wallet. When it comes to buying and selling a home, New Yorkers pay the highest closing costs in the entire country.

That's according to a new Bankrate.com survey, which doesn't even include all of the extra taxes here.

"When they find out what they're going to have to pay, they're astonished," said Jim Roberts of Metro Roberts Realty.

According to the Bankrate.com survey, New Yorkers pay an average of $6,138 in closing costs for a $200,00 home. That doesn't even include state taxes.

New York has a 1% mortgage "recording tax," as well as a "transfer tax." which is 0.9% in Erie County.

That's an additional $3,800 in taxes, bringing the grand total to nearly $9,983 in closing costs and taxes for a $200,000 home.

"It makes it very hard for the first-time home buyer to afford this to purchase a property in already a market that is stale," Roberts said.

New York State Assemblyman Dennis Gabryszak says the state should consider rolling back some of these taxes at least until the housing market rebounds.

REPORTER: Is this the kind of distinction New York State really wants?

GABRYSZAK: Of course it's not... When you factor in things that we have no control over, for example bank lending fees, attorney fees, no control over that. But the areas that we do have some control over, we ought to take a look at.

REPORTER: Do you think your colleagues will go along with it?

GABRYSZAK: Well...

REPORTER: Taxes don't get rolled back here too often.

GABRYSZAK: No they don't. But, once again, I think you have a different mindset.

Gabryszak pointed to the new property tax cap and budget-cutting governor as proof that New York could soon shed this embarrassing housing distinction. He Said he'll bring up the issue with the Assembly Banking Committee when lawmakers return to Albany.

Western New York does have one saving grace -- its housing prices. The area continues to have some of the best real estate bargains for a region of its size.

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