Understanding Closing Costs When Selling to a Cash Buyer

The full cost list in a traditional New York sale

Sellers are often shocked at the gap between sale price and check-in-hand. In a typical listed sale in Monroe County, the seller's side includes: the agent commission (customarily 5–6% of price, split between agents — on a $200,000 home, $10,000–12,000); the New York State transfer tax ($2 per $500 of price, i.e. 0.4% — $800 on that same home); attorney fees (New York closings customarily involve attorneys; seller-side fees commonly run several hundred to around a thousand dollars); assorted recording and payoff processing fees; any agreed repair credits from the buyer's inspection; and carrying costs for every month the house sits — mortgage interest, taxes, insurance, utilities. None of these is hidden; they're just rarely added up in one place before a seller commits.

What changes with a direct cash buyer

• Commission: eliminated. No agents, no 5–6%. On mid-priced Rochester homes this is the single largest saving, usually five figures.
• Typical closing costs: covered by the buyer. A standard term in direct purchases — including ours — is that customary seller closing costs are paid by the buyer, so the contract price is what you actually receive, minus only your own payoffs.
• Repair credits: gone by construction. The as-is price already reflects condition, so there's no post-inspection renegotiation round.
• Carrying costs: minimized. Weeks instead of months on the calendar means fewer mortgage payments and tax escrows before you're out.

What no sale eliminates

Two categories survive every structure, and any buyer who implies otherwise is being cute. First, your payoffs: the mortgage balance, home-equity lines, tax arrears, and any liens are yours, settled from proceeds at closing regardless of who buys. Second, the transfer tax is a state obligation on the transaction (in practice, who bears it is a contract term — ask, and get it in the agreement). The settlement statement you review before signing lists every one of these to the dollar; a professional buyer walks you through it line by line, and the whole picture connects directly to how the offer was built in the first place.

Frequently asked questions

This guide is general information, not legal, tax, or financial advice. Laws and procedures change and every situation is different — for advice on your specific circumstances, consult a New York attorney or, for mortgage difficulties, a HUD-approved housing counselor.

See how this works in practice: real Rochester success stories.