In depth · Property
Buying property in New York: how it works
A practical guide to how buying a home in New York City works, from the offer to closing, with the costs particular to New York. It is general information, not legal or financial advice.
Updated October 2026
Co-ops and condominiums
In a co-op you buy shares in the corporation that owns the building and receive a proprietary lease; the board must approve you and sets rules on financing, subletting and renovations. A condominium is real property that you own outright, with a share of the common areas; condo boards have less say over who buys.
From offer to closing
Your broker negotiates the price; your attorney then reviews the building’s finances and the contract, and you usually sign and pay a deposit when contracts are signed. Co-op purchases also need a board application and interview. At closing, the deed or shares and the money change hands and the transfer taxes are paid.
Transfer and mansion taxes
New York City’s Real Property Transfer Tax is 1% of the price for residential transfers of $500,000 or less, and 1.425% above that (nyc.gov/finance). New York State’s real estate transfer tax is $2 for each $500 of consideration, with an additional base tax for residential sales in New York City of $3 million or more. A mansion tax of 1% applies to homes sold for $1 million or more, and in New York City a supplemental tax applies at incremental rates between 0.25% and 2.9% based on the price; the buyer pays the mansion and supplemental taxes (tax.ny.gov).
Buying from overseas
Foreign nationals can buy property in New York; condominiums are usually simpler than co-ops. When a foreign owner later sells, federal FIRPTA rules generally require part of the sale price to be withheld for tax. Take advice from a New York real-estate attorney and a tax adviser in both countries before you buy.
Where people buy
Buyers look at the Upper East and Upper West Sides, Billionaires’ Row, Tribeca and the West Village, Hudson Yards and, across the river, DUMBO and Brooklyn Heights. See our property guide; we do not publish price estimates.
Questions and answers
What is the transfer tax in New York City?
For residential sales, 1% up to $500,000 and 1.425% above, plus New York State’s transfer tax of $2 for each $500 (nyc.gov, tax.ny.gov).
What is the mansion tax?
A 1% New York State tax on homes sold for $1 million or more, paid by the buyer, with supplemental rates in New York City (tax.ny.gov).
Can foreigners buy property in New York?
Yes. Most choose condominiums; take advice from a New York attorney and a tax adviser.
Mortgage calculator
A rough monthly repayment before you talk to a lender. Everything is worked out in your browser; nothing you type is sent anywhere. Closing costs in New York include transfer taxes and, from $1 million, the mansion tax: see our guide to buying property in New York.
General information only, not legal or financial advice. Rates and rules change: check with NYC Finance, the New York State Department of Taxation and Finance and a licensed professional.