The cost to sell a house on Long Island surprises a lot of homeowners. Most people know their home's value. Fewer know what they'll actually walk away with after New York taxes, fees, and the mortgage payoff.
This guide explains each seller cost in plain English, shows a simple example, and gives you a checklist so you can plan before you list.
Selling a house on Long Island usually costs the New York transfer tax (0.4% of the price), your real estate attorney, the agent commission you agree to, your mortgage payoff fees, and any repairs or credits you give the buyer. The commission is often the biggest line, and it's negotiable. Ask your agent for a written net sheet before you list.
What costs do sellers pay on Long Island?
Sellers on Long Island usually pay the New York State transfer tax, their own attorney, the agent commission they agree to, and the fees to pay off their mortgage. Many sellers also pay for repairs, a few moving costs, or a credit to the buyer after the inspection.
Your exact number depends on your price, your mortgage, and what you agree to in the contract.
How much is the New York transfer tax for sellers?
The New York State real estate transfer tax is $2 for every $500 of the sale price. That's 0.4%. The seller pays it unless the contract says otherwise, according to the NY Department of Taxation and Finance.
On a $650,000 sale, that's $2,600.
The 1% mansion tax on homes of $1 million or more is paid by the buyer, not the seller. On the East End, the Peconic Bay region has its own 2% tax, but that's also paid by the buyer, according to the Town of Southold.
Here's what that actually means for you: in towns like Kings Park, Commack, Huntington, and Smithtown, the state transfer tax is usually the only transfer tax you pay as the seller.
Do I need a lawyer to sell a house in New York?
In practice, yes. On Long Island, the seller and the buyer each hire a real estate attorney. Your attorney reviews the contract, answers title questions, orders your mortgage payoff, and handles the closing.
Ask for the fee in writing before you sign anything. Most attorneys charge a flat fee for a simple sale.
How much is the real estate commission on Long Island?
Commission is negotiable. There's no set rate in New York. You and your listing agent agree on the pay in a written listing agreement.
Since August 2024, offers of pay to a buyer's agent can't be posted on the MLS. Sellers can still choose to help with the buyer's agent costs as part of the deal, according to the National Association of REALTORS®.
Here's what that actually means for you: ask every agent you interview to explain their fee, what it includes, and how they'll handle buyer agent pay. Get it in writing.
What is the property condition disclosure in New York?
New York sellers must fill out and sign a Property Condition Disclosure Statement and give it to the buyer before the buyer signs the contract. Since March 20, 2024, sellers can no longer give a $500 credit instead, according to the New York State Association of REALTORS®. The form now also asks about flooding.
It doesn't cost money to fill out, but give yourself time to answer every question honestly.
What other costs should sellers expect?
- Mortgage payoff. Your lender gets paid in full at closing, plus interest up to the payoff date and any small payoff or recording fees.
- Property tax adjustments. Long Island taxes are paid ahead. If you paid taxes for time after closing, the buyer usually pays you back. If you're behind, you pay at closing.
- Repairs and credits. After the home inspection, buyers may ask for fixes or a credit.
- Getting the home ready. Cleaning, paint, small repairs, and photos. Read what to fix before selling to spend only where it counts.
- Moving costs. Movers, storage, and any overlap if you're buying your next home.
Example: selling a $650,000 Long Island home
This is a rough example for planning only. Your attorney and agent will give you real numbers.
| Cost | Rough estimate |
|---|---|
| NY State transfer tax (0.4%) | $2,600 |
| Seller's attorney | Flat fee, ask up front |
| Agent commission | Negotiable, set in your listing agreement |
| Mortgage payoff fees | Set by your lender |
| Repairs or buyer credits | Depends on the inspection |
| Tax adjustment | Credit or charge, depends on dates |
Your net = sale price, minus your mortgage payoff, minus the costs above.
Do I pay capital gains tax when I sell my home?
Many homeowners don't. If you owned and lived in the home for at least 2 of the last 5 years, you may be able to exclude up to $250,000 of gain, or up to $500,000 if married filing jointly, according to the IRS. Talk to your tax professional about your situation.
How can I lower my costs to sell?
- Price it right the first time. Homes priced from recent nearby sales tend to get stronger offers. Start with what your Long Island home is worth.
- Fix the small things early. A pre-listing check can cut down on credits later.
- Compare agents and fees. Ask each one for a written net sheet. See how to choose a Long Island realtor.
- Plan your dates. Your closing date changes your tax adjustment and your mortgage interest.
Seller cost checklist for Long Island homeowners
- Get a payoff estimate from your mortgage lender.
- Ask a real estate attorney for their flat fee.
- Add the 0.4% New York transfer tax to your budget.
- Agree on the commission in writing with your listing agent.
- Fill out the Property Condition Disclosure Statement early.
- Set money aside for repairs, credits, and moving.
- Ask for a written net sheet before you list.
How I help sellers plan their net
I'm Kellen Vinco, a Long Island REALTOR® with Douglas Elliman in Smithtown. Before selling homes, I spent 25+ years in commercial property management, so I read tax bills, repair estimates, and contracts line by line. I help sellers across Kings Park, Commack, Huntington, Fort Salonga, Dix Hills, Smithtown, Hauppauge, and Hicksville, in English and Spanish.
Thinking about selling? Book a free consultation and I'll put together a written estimate of your costs and your net before you list.
Sources and helpful links
Kellen helps Long Island buyers and sellers in English and Spanish, with 25+ years of property management experience behind every home she walks through.
This article is for general information only and is not legal, tax, mortgage, or financial advice. Market conditions change, so confirm details for a specific property. Equal Housing Opportunity.
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Common questions
How much does it cost to sell a house on Long Island?
Plan for the 0.4% New York transfer tax, your attorney, the commission you agree to, and your mortgage payoff fees. Ask your agent for a written net sheet with your real numbers.
Who pays the transfer tax in New York?
The seller usually pays the New York State transfer tax, which is $2 for every $500 of the price. The buyer pays the 1% mansion tax on homes of $1 million or more.
Is real estate commission negotiable on Long Island?
Yes. There's no set rate. You agree on the fee in writing with your listing agent.
Can I still give a $500 credit instead of the disclosure form?
No. Since March 20, 2024, New York sellers must fill out the Property Condition Disclosure Statement and give it to the buyer before the contract is signed.
Do I pay capital gains tax when I sell my house?
Many sellers don't. If you lived in the home 2 of the last 5 years, you may exclude up to $250,000 of gain, or $500,000 if married filing jointly. Check with your tax professional.
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