Buyer & Seller Resource

Closing Costs on the East End

Closing costs out here work differently than in most markets — including two taxes many buyers have never encountered before. Below are typical estimated costs for single-family home transactions on the East End, along with the taxes specific to our towns.

For the Buyer

Typical estimated closing costs for the purchaser of a single-family home:

ItemTypical Estimate
Buyer's attorneyConsult your attorney
Bank fees$750+
Application fee$350+
Processing fee$330+
Appraisal fee$500–$2,000
Credit report fee$45–$100+
Bank attorney$750–$1,000
Tax escrow2–6 months
Recording fees$500–$1,500 est.
Fee title insuranceNYS filed rates
Mortgage title insuranceVariable by transaction
Municipal search fees$425–$650 per lot
Mortgage tax (Suffolk/Nassau, paid by borrower)1.05% of loan amount
Mansion Tax (if purchase price is $1M+)1% of purchase price
Peconic Bay CPF Tax (see below)2.5% less exemption

For the Seller

Typical estimated closing costs for the seller of a single-family home:

ItemTypical Estimate
AgentAgreed-upon broker fee
Own attorneyConsult your attorney
Mortgage satisfaction feeVaries
NYS transfer tax$4 per $1,000
Administrative fee — residential deed transfer$75
Pick-up/payoff fee to title closer~$250–$500
NYS equalization fee$75
Miscellaneous title fees$500+

Other potential costs (typically paid by buyer unless noted)

Home inspections, lender charges, mortgage broker charges, oil tank inspection, survey, title insurance and searches. Title closer fees may be paid by buyer and/or seller.

The Peconic Bay CPF Tax

Unique to the five East End towns, the Community Preservation Fund tax (plus the Community Housing Fund tax) is paid by the buyer at closing. The combined rate is 2.5% of the purchase price in East Hampton, Southampton, Shelter Island, and Southold, less an exemption that varies by town:

TownExemption
East Hampton, Southampton, Shelter Island$400,000 improved · $100,000 vacant land
Southold$200,000 improved · $75,000 vacant land
Riverhead (rate remains 2%)$150,000 improved · $75,000 vacant land

No exemption applies on transactions of $2,000,000 or more (East Hampton, Southampton, Shelter Island, Southold).

Worked examples (improved residential property, East Hampton/Southampton/Shelter Island)

Purchase at $1,800,000: ($1,800,000 − $400,000) × 2.5% = $35,000
Purchase at $2,500,000: no exemption applies — $2,500,000 × 2.5% = $62,500

The NY State Mansion Tax

Paid by the purchaser on transactions that are 100% residential with a purchase price of $1,000,000 or more. On Long Island, the rate is a flat 1% of the purchase price — it does not increase at higher price points.

A $2,500,000 purchase owes $25,000 in Mansion Tax, in addition to the CPF tax above — together, these two taxes typically make up the bulk of buyer closing costs on East End transactions.

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