Wondering who pays what when you close on a home in Syracuse? You are not alone. New York closings have unique fees, and customs in Onondaga County can differ from other states. This guide breaks down common buyer and seller costs, what’s negotiable, and how to budget with confidence. Let’s dive in.
Closing costs in Syracuse
Closing costs are the one-time fees due when you transfer property. In upstate New York, it is common for both sides to have attorneys. Many line items are negotiable in the contract, and some fees vary by provider.
You will see two categories:
- Buyer costs tied to the mortgage, title protections, inspections, and recording.
- Seller costs tied to commissions, transfer taxes, payoffs, and attorney work.
Who pays what
Customs can vary by deal, but these are typical allocations in Syracuse and the rest of upstate New York. Always confirm with your lender, attorney, and title company for your exact numbers.
Buyer costs: what to expect
- Lender fees: Application, origination, underwriting, and processing are usually buyer-paid. Combined totals often land around 0.5% to 1.5% of the loan amount, though some lenders charge flat fees.
- Discount points: You may choose to pay points to lower your rate. One point equals 1% of the loan amount.
- Appraisal: Typically buyer-paid. Common range is about $400 to $800 depending on the property.
- Credit report: Usually buyer-paid. Often $25 to $50.
- Mortgage recording tax: New York charges a mortgage recording tax when a mortgage is recorded. The borrower usually pays. Rates vary by county and loan amount, so verify the current Onondaga details.
- Title insurance (lender’s policy): Required by most lenders and usually paid by the buyer. Pricing depends on loan amount and insurer.
- Owner’s title insurance: Optional but recommended. Who pays is negotiable, though buyers often do.
- Title search and settlement fees: Often buyer-paid in New York, but negotiable.
- Survey: Sometimes needed and commonly buyer-paid.
- Home inspections: General inspections often run about $300 to $600. Specialty inspections such as radon, pest, or septic are extra.
- Escrows for taxes and insurance: Buyers usually prepay a few months of property taxes and homeowner’s insurance to fund the new escrow account.
- Recording fees: Administrative county fees to record the mortgage and other documents are usually buyer-paid.
- Mansion tax: For residential purchases at or above $1,000,000, New York’s mansion tax is typically buyer-paid.
Seller costs: what to expect
- Real estate commission: The seller typically pays the listing broker, who may share with the buyer’s broker. Local norms often range around 5% to 6% of the sale price, but rates are not set by law and vary by agreement.
- New York State Real Property Transfer Tax: Traditionally seller-paid unless negotiated differently. A common state formula is $2 per $500 of consideration, which equals 0.4% of the sale price. Always confirm current rules and your allocation with your attorney.
- Payoff of existing mortgage(s) and liens: The seller pays off loans and clears any liens from proceeds.
- Seller attorney fees: In New York, sellers typically retain an attorney. Fees vary by complexity.
- Municipal and utility items: Depending on the property location, you may have water, sewer, or certificate fees at transfer. Check City of Syracuse or local municipality requirements.
- Recording fees for lien releases: Seller usually covers the recording of the mortgage satisfaction or lien releases.
- Prorations and adjustments: Taxes, HOA or condo dues, and other prepaid items are prorated to the closing date.
Shared or negotiated items
- Property tax proration: Standard practice credits the seller up to the closing date, with the buyer responsible thereafter.
- HOA or condo dues: Typically prorated based on the ownership date.
- Repair escrows and credits: Negotiated based on inspections, appraisals, or lender requirements. These can affect cash due at closing or net proceeds.
- Title and settlement charges: Allocation can vary. In many Syracuse deals, the buyer covers the lender’s title policy and settlement fees, but the owner’s policy and other charges can be negotiated.
Syracuse and Onondaga specifics
- Recording and forms: The Onondaga County Clerk sets recording fees for deeds, mortgages, and releases. These are flat administrative fees that change from time to time. Ask your attorney or title company to confirm the current fee schedule and turnaround times.
- State transfer tax and forms: New York requires the Real Property Transfer Tax and transfer reporting forms when recording deeds. Your attorney or title company usually prepares and files them.
- Mortgage recording tax: New York assesses a mortgage recording tax when a mortgage is recorded. The borrower typically pays. Check your lender and attorney for the precise amount for your loan.
- Mansion tax: For residential transactions at or above $1,000,000, the buyer typically pays a 1% state mansion tax.
- Local transfer taxes: Many upstate counties do not add a local transfer tax on top of the state tax. Confirm with the Onondaga County Clerk and the City of Syracuse if any municipal charges apply to your property.
- Use of attorneys: It is customary for both sides to work with attorneys in New York. This helps coordinate title, lender documents, municipal payoffs, and closing statements.
Budgeting: quick rules of thumb
- Buyers: Plan for about 2% to 5% of the purchase price in total closing costs if you finance the purchase. This range includes lender fees, title charges, recording, and prepaid escrows.
- Sellers: Expect commission as the largest cost, often in the 5% to 6% range, plus transfer taxes and your attorney fee. After commissions and common closing costs, net proceeds are frequently 6% to 10% lower than the sale price, before paying off your mortgage.
What is negotiable
Many costs can shift based on market conditions, property type, and your contract. Common negotiables include:
- Seller credit toward buyer closing costs, subject to loan program limits.
- Who pays for the owner’s title policy.
- Repair escrows or price adjustments tied to inspection findings.
- Certain title and settlement fees.
In multiple-offer situations, you may see fewer seller-paid concessions. In a slower market, buyers may negotiate more credits. Your attorney and agent can help you target the best structure for your goals.
Investor notes for duplex and multi-family
- Lender-driven costs can be higher if you use an investment loan product, and reserves may be larger.
- Inspection scope often expands to include separate mechanicals, attic and basement checks, and rental compliance items.
- Prorations for rents and security deposits will appear on your closing statement. Clarify tenant rent status and any municipal rental registrations before closing.
How to confirm your numbers
- Ask your lender for a Loan Estimate early and a Closing Disclosure before closing. These outline most buyer-side fees and prepaids.
- Ask your attorney for a draft closing statement or net sheet that shows your expected cash to close or net proceeds.
- Have your title company or attorney confirm the Onondaga County Clerk’s current recording fees and any local transfer requirements.
- Check New York State guidance for the Real Property Transfer Tax, mortgage recording tax, and mansion tax.
- If your property is in the City of Syracuse, confirm water, sewer, and any other municipal payoff procedures.
Example timelines
Upstate New York closings commonly run 30 to 60 days from contract to close. Timing depends on lender underwriting, title work, municipal payoffs, and scheduling with attorneys and the county clerk for recording. Cash deals can close faster if title is clear and municipal items are ready.
Your next step
If you want a clear picture of your closing costs in Syracuse, connect with a local team that lives this process every day. From early estimates to final statements, we will help you structure a smart deal, verify every line item, and keep your closing on track. Reach out to Jeremy Allen to talk through your plan.
FAQs
Who pays the New York State transfer tax on a Syracuse sale?
- The seller traditionally pays the Real Property Transfer Tax, but you can negotiate differently. Your attorney and title company will handle filing and payment at closing.
Who pays the mortgage recording tax in Onondaga County?
- The borrower typically pays the mortgage recording tax when a mortgage is recorded. The exact amount depends on the loan and jurisdiction, so confirm with your lender and attorney.
What closing costs do Syracuse buyers usually pay?
- Buyers commonly pay lender fees, appraisal, credit report, title search and title insurance, mortgage recording tax, inspections, recording fees, and initial escrow deposits.
What closing costs do Syracuse sellers usually pay?
- Sellers typically cover the real estate commission, state transfer tax, attorney fee, lien release and recording costs, and payoffs of any existing mortgages or liens.
Is owner’s title insurance required in New York?
- No. It is optional but recommended. The lender will require a lender’s policy. Who pays for the owner’s policy can be negotiated in the contract.
What is the mansion tax in New York closings?
- For residential transactions at or above $1,000,000, the buyer typically pays a 1% mansion tax at closing. Verify your transaction specifics with your attorney.
How much should Syracuse buyers budget for closing costs?
- Buyers using financing often budget about 2% to 5% of the purchase price to cover lender fees, title charges, recording, and prepaid escrows.
Can a seller pay part of the buyer’s closing costs in Syracuse?
- Yes. Seller credits are common, within lender limits on concessions. The market and property condition often drive how much is possible.
