Most Long Island homeowners know roughly what their home is worth. But very few know what they will actually walk away with after the sale. And that gap, between what you think you will net and what you actually net, is one of the most stressful surprises in real estate.
This post is here to close that gap. No sales pitch, no pressure. Just the real numbers so you can plan ahead.
The Five Cost Buckets You Need to Know
When you sell a home in New York, your costs fall into five main categories. Here is what each one looks like in plain language.
1. Agent Commission
This is typically 5 to 6 percent of the final sale price and is split between your listing agent and the buyer’s agent. On a $650,000 sale that is $32,500 to $39,000. This is the largest single cost of selling and the one most sellers are already aware of. What many do not realize is that this comes out of the sale proceeds at closing, not out of pocket beforehand.
2. New York State Transfer Tax
New York charges a transfer tax of 0.4 percent of the sale price. On a $650,000 home that is $2,600. This is paid by the seller in most standard transactions on Long Island.
3. Attorney Fees
New York State requires an attorney at closing. Expect to pay between $1,500 and $3,000 depending on the complexity of the transaction. Some attorneys charge flat fees, others bill hourly. Get this number confirmed before you list so there are no surprises at the closing table.
4. Mortgage Payoff and Related Fees
If you have an outstanding mortgage, your lender will provide a payoff figure that includes the remaining balance plus any accrued interest and potentially a small prepayment fee. This varies widely. Your attorney will coordinate this with your lender as part of the closing process.
5. Repairs, Credits, and Concessions
After a home inspection, buyers sometimes request repairs or ask for a price credit. This can range from zero to several thousand dollars depending on the condition of your home. Not every transaction includes this, but it is worth factoring in as a potential cost when you are running your numbers.
What the Real Math Looks Like
Here is a simplified look at what a seller in Smithtown might realistically face on a $650,000 sale.
These are estimates and every transaction is different. But this gives you a realistic frame to work from before you start any conversations with an agent.
| Item | Amount |
|---|---|
| Sale price | $650,000 |
| Agent commission at 5.5 percent | ($35,750) |
| NY State transfer tax | ($2,600) |
| Attorney fees | ($2,000) |
| Mortgage payoff (example) | ($320,000) |
| Repairs or concessions (estimated) | ($3,000) |
| Estimated net proceeds | ~$286,650 |
The Two Mistakes Sellers Make With This Information
Mistake one: waiting until the closing table to see the real numbers. By then your options are limited. Understanding these costs before you list means you can set a price that actually gets you to your goal.
Mistake two: using the gross sale price as the number in your head. The $650,000 listing price is not what you take home. Your net proceeds are what matters. Build your plans around that number, not the headline price.
One Thing Most Agents Will Not Tell You
The best time to run these numbers is before you call an agent, not after. Know what you need to walk away with. Know what you still owe. Have a rough sense of what repairs might come up. That information puts you in control of the conversation from the very first call.
If you want help running the real numbers on your specific home, that conversation is free and there is no obligation attached to it. Call me and I will sit with you and get you clarity.
