Selling your Westchester home and wondering what you will actually take home after closing? You are not alone. Between commissions, taxes, title and recording fees, and a few timing curveballs, your net can shift more than you expect. This guide breaks down the common seller costs in Westchester County, how New York taxes and withholding work, and when you can expect your funds. Let’s dive in.
What sellers pay at closing
Broker commission
The real estate commission is usually your largest single cost. It is negotiated as a percentage of the sale price and is commonly split between the listing and buyer’s brokers. Your listing agreement will spell out the rate and what is included in the marketing and representation.
Mortgages and liens
Any outstanding mortgage must be paid off at closing using an official payoff demand from your lender. If there are other liens or judgments, they must be cleared or addressed before transfer. Build in time to order payoff letters and verify their expiration dates so they remain valid through the closing date.
Transfer taxes
New York State imposes a real estate transfer tax on most property transfers. This tax is handled at closing using the required state forms, such as TP-584 or its successor. Some Westchester municipalities may also have local transfer or conveyance taxes, and who pays can depend on local practice or negotiation.
Title and closing fees
Expect title-related costs such as title search, title insurance, and settlement or closing agent fees. In many parts of New York the seller often pays for the owner’s title insurance policy, though practices can vary by town or by contract. Ask your attorney or title company to confirm what is customary for your property type and municipality.
Recording and clerk fees
County clerk fees cover recording the deed, releasing your mortgage, and other documents. These fees are modest compared with taxes and commission but add up if multiple recordings are needed. Your closing team will confirm the exact schedule with the Westchester County Clerk.
Professional fees
Seller attorney fees are common in New York and can range from several hundred to a few thousand dollars based on complexity. You may also have administrative charges from your brokerage, plus any accountant or tax advisor fees if you seek guidance on capital gains or withholding.
Prorations and adjustments
Certain bills are prorated to the day of closing. These often include property taxes, water and sewer, and condo or HOA charges. Westchester property taxes can be relatively high compared with many parts of the U.S., so prorations can meaningfully affect your net.
Credits and repairs
If you negotiated repair credits after inspection or need to resolve a municipal issue, those amounts appear on your settlement statement. Some towns require certificates or final inspections, which can lead to last-minute adjustments. Clarify who pays for any municipal certifications early to avoid surprises.
Income tax impact
Your tax position can change your proceeds at the table. Federal capital gains rules, New York State income tax, nonresident seller withholding, FIRPTA for foreign sellers, and 1031 exchange rules for investment property all come into play. Loop in a tax advisor if you expect a notable gain or fall into a special category.
Taxes and withholding to plan for
New York state transfer tax
New York State assesses a transfer tax on most real property transfers. It is usually collected and filed by the closing team as part of your paperwork. Ask your attorney to confirm the current rate and standard payer responsibility in your town.
Local transfer or conveyance taxes
Some Westchester municipalities may levy additional transfer or conveyance taxes. Rates and customary payer can vary by locality. Your attorney or title company should verify the latest rules with the Westchester County Clerk or the relevant municipal office.
State mansion tax effect
New York’s mansion tax applies to certain residential purchases at or above the million-dollar threshold and is typically a buyer cost. While you may not owe it as the seller, it can influence negotiations if credits are discussed. Your attorney can explain how a buyer’s mansion tax might factor into your net.
Nonresident seller withholding
If you are not a New York State resident, state rules may require withholding at closing. The process often involves state forms and can depend on your expected gain and exemptions. Review New York’s nonresident procedures, such as IT-2663, with your tax advisor well before the closing date.
FIRPTA for foreign sellers
If the seller is a foreign person under federal rules, FIRPTA generally requires buyer-side withholding of a portion of the gross sale price, subject to exceptions or reduced withholding certificates. This can materially affect cash at closing. Foreign sellers should coordinate early with an international tax advisor to explore options and timelines.
Capital gains and exclusions
If the home is your primary residence, you may be able to exclude up to $250,000 of gain if single or up to $500,000 if married filing jointly, provided you meet ownership and use tests. Gains above those amounts are generally taxable at the federal level. New York State also taxes capital gains as part of your state income tax.
1031 exchanges for investors
Investment property sellers may be able to defer federal capital gains using a 1031 like-kind exchange if strict timelines and rules are followed. This is not available for primary residences. If you plan an exchange, involve a qualified intermediary and your advisors before you list.
Timing and cash flow at closing
Your net estimate
Ask your listing agent or closing team for a seller net-proceeds estimate early and again before you sign a contract. The estimate should include transfer taxes, commission, expected payoffs, prorations, and standard closing fees. Request a final settlement statement several days before closing when possible so you can verify each line.
Payoff timing and release
Payoff demands include principal, per diem interest through a specific date, and any lender fees. These demands expire after a short window, so a delayed closing may require an updated letter. Recording a mortgage release can take one to several business days depending on the clerk’s processing.
When you receive funds
Many transactions disburse proceeds once the deed and any required releases are recorded and funds have cleared. You can often expect funds the same day or within 1 to 3 business days in a routine closing. If the buyer’s lender requires a recorded deed before funding or if any holdbacks apply, disbursement may take longer.
Closing-day documents
Be ready to sign the deed, closing affidavits, payoff authorizations, and settlement statements. Bring government ID and all keys, garage openers, and access cards. If your town requires permits or certificates for smoke or CO alarms or occupancy, have those ready to avoid delays.
Escrows and holdbacks
Escrows can cover last-minute items like final utility reconciliations, lien releases, or agreed repair credits. The escrow amount and release conditions should be written into your settlement statement. Ask how and when any remaining balance will be released back to you.
Timing traps to avoid
- Payoff letters that expire before closing
- Last-minute lien or judgment discoveries
- Nonresident or FIRPTA withholding that has not been pre-cleared
- Missing municipal certificates or inspections needed to close
Typical cost ranges
Below are planning ranges and examples. Local practice varies, so confirm your exact numbers with your attorney, title company, and the Westchester County Clerk.
- Commission: commonly the largest cost and negotiated as a percentage of sale price. Often split between listing and buyer brokers.
- Mortgage payoff: principal, accrued interest, and any lender fees or prepayment penalty if applicable.
- New York State transfer tax: assessed on most transfers and handled at closing using current state forms.
- Local transfer or conveyance tax: varies by municipality. Confirm with your closing team.
- Attorney fees: often several hundred to a few thousand dollars depending on complexity.
- Title costs: title search and title insurance. In many parts of New York the seller often pays the owner’s policy, but this can vary by town or contract.
- Recording and clerk fees: typically modest per document; add up if multiple releases are recorded.
- Municipal searches and certifications: water and sewer, municipal lien searches, and payoff letters can total several hundred dollars.
- Condo or HOA transfer and estoppel fees: often $200 to $500 or higher depending on the association.
- Prorations: property taxes, HOA or common charges, water and sewer, and any rents if tenant-occupied.
- Miscellaneous: courier and wire fees, document preparation, key and access device transfers.
Westchester seller checklist
- Ask for a detailed net-proceeds worksheet before listing and refresh it before signing a contract.
- Order mortgage payoff letters early and track their expiration dates.
- Confirm state and local transfer taxes, including who customarily pays them in your municipality.
- Clarify who pays for the owner’s title insurance policy in your town and verify title rate schedules for your price point.
- Collect required municipal certificates or inspections well before closing.
- If nonresident or foreign, start withholding planning early and review forms like IT-2663 and FIRPTA procedures with a tax advisor.
- Request a final settlement statement several days before closing and review every line.
- Discuss wire instructions and timing for disbursement so you know when to expect your funds.
Lean on local guidance
Selling in Westchester is straightforward when you plan for taxes, title, and timing. The right team will help you price accurately, navigate transfer taxes and withholding, and protect your closing date by ordering payoffs and certificates early. If you want a clear net and a smooth handoff of keys and funds, partner with experienced local representation.
Have questions about your numbers or next steps? Connect with the senior-led team at Sunbelt Sales & Development Corp. for a no-pressure seller consult and a customized net sheet for your Westchester sale.
FAQs
What closing costs do Westchester sellers typically pay?
- Expect commission, mortgage payoffs, New York State transfer tax, possible local transfer taxes, title and recording fees, attorney fees, and prorations for taxes and HOA charges.
When do Westchester home sellers receive their sale proceeds?
- Many sellers receive funds the same day or within 1 to 3 business days after closing, once documents record and funds clear, though holdbacks or lender requirements can extend timing.
How does New York’s nonresident seller withholding work?
- If you are not a New York resident, state rules may require withholding at closing using procedures such as IT-2663, with potential adjustments based on expected gain and exemptions.
What should a foreign seller know about FIRPTA in Westchester?
- FIRPTA generally requires buyer-side withholding of a portion of the gross sale price for foreign sellers unless a valid exception or reduced withholding certificate applies.
Who pays for owner’s title insurance in Westchester?
- In many parts of New York the seller often pays for the owner’s policy, but it can vary by municipality and contract, so confirm with your attorney or title company.
Does the New York mansion tax affect me as a seller?
- The mansion tax is typically a buyer cost, but it can influence negotiations or credits that affect your net, so discuss it with your attorney during offer review.
