How Much Does It Cost to Sell a Home on Long Island?

Why selling costs surprise so many Long Island homeowners

Most sellers focus on one number: the price they hope to get. Far fewer think carefully about the gap between that sale price and the check they actually walk away with at closing. That gap is where selling costs live, and on Long Island it is wider than in most of the country for three reasons.

First, New York is an attorney-closing state — both the buyer and the seller retain a real estate attorney here, which adds a professional fee to every transaction. Second, Long Island home values are high: Nassau County's median sale price has been running around $835,000 to $852,000 through 2026 and Suffolk County around $700,000, so percentage-based costs like commission and transfer tax translate into large dollar figures. Third, the East End (the Hamptons, Montauk, the North Fork, and the surrounding towns) carries its own layer of local transfer taxes that do not exist elsewhere on the Island, and buyers and sellers alike are often confused about who pays them.

The good news is that once you understand the components, none of them are mysterious, and several are negotiable.

The at-a-glance cost breakdown

Here is the full picture of what a Long Island seller can expect to pay. Treat the percentages as planning estimates; your attorney will produce an exact figure at closing.

Notice how many of the “big scary taxes” people associate with Hamptons real estate — the mansion tax, the Peconic Bay tax, the Community Housing Fund — fall on the buyer's side of the table. As a seller, your direct tax bill to New York State is comparatively modest. Your largest controllable costs are commission and preparation.

Real estate agent commission: the largest single cost

For most Long Island sellers, the real estate commission is by far the biggest expense, and it is also the one that changed the most recently. In 2024, a nationwide legal settlement involving the National Association of Realtors (NAR) reshaped how commissions work, and the effects are now fully in play in 2026.

How commission works after the 2024 NAR settlement

Historically, a seller signed a listing agreement that bundled together the total commission — commonly quoted as 5% to 6% — and the listing broker then shared roughly half of that with whatever agent brought the buyer. That shared amount was advertised on the Multiple Listing Service (MLS), so buyers' agents knew in advance what they would earn.

The settlement ended that practice. Buyer-agent compensation can no longer be advertised on the MLS, and sellers are no longer automatically expected to pay the buyer's agent. In practice, this means three things for you as a Long Island seller today. You negotiate your listing agent's fee directly, and it is typically 2.5% to 3% of the sale price. You then decide separately whether — and how much — to contribute toward the buyer's agent's compensation, which might be anywhere from 0% to 3%. And buyers now sign their own written agreements with their agents, so in some transactions the buyer pays their agent directly rather than the seller covering it.

What Long Island sellers actually pay in 2026

Despite predictions that the settlement would collapse commissions, the total most Long Island sellers pay has settled into a 5% to 6% range when they compensate both sides, with 5% to 5.5% increasingly common. The reason is practical: most buyers here still work with an agent who expects to be paid, and a listing that offers little or no buyer-agent compensation can quietly lose showings to competing homes that do. So while you have more control than ever, offering some buyer-agent compensation is often still the strategic choice.

On a $700,000 Suffolk County sale, a 5% total commission is $35,000 and a 6% commission is $42,000. On an $850,000 Nassau County sale, those figures become $42,500 and $51,000. On a $2,000,000 Hamptons sale, even a 5% commission is $100,000. You can see why this line dominates the math — and why it is worth negotiating thoughtfully rather than simply accepting the first number quoted.

Is commission negotiable?

Yes — commission has always been negotiable, and the current environment makes that more explicit than ever. But the lowest number is not always the best deal. A skilled listing agent who prices the home correctly, markets it aggressively, and negotiates hard on your behalf can easily recover their fee, and then some, through a higher sale price and better terms. Weigh commission against the agent's track record, marketing plan, and local knowledge, not in isolation. On the East End in particular, an agent who understands seasonal timing and the second-home buyer pool brings value a discount brokerage rarely matches.

New York State transfer tax

After commission, the next cost every Long Island seller pays is the New York State real estate transfer tax. This is a state tax on the conveyance of property, and in a standard sale the seller is responsible for it.

The rate is $2 for every $500 of the sale price, which works out to 0.4% (or $4 per $1,000). On a $700,000 home, that is $2,800. On an $850,000 home, it is $3,400. On a $2,000,000 sale, it is $8,000.

One point causes a lot of confusion, so it is worth stating plainly: there is an additional 0.25% state surcharge — bringing the rate to 0.65% — but it applies only to residential properties of $3 million or more within a city of one million or more people, which in practice means New York City. Nassau and Suffolk are not NYC, so a Long Island seller pays the flat 0.4% regardless of price. Unlike commission, this tax is not negotiable and cannot be financed — it is paid in cash at closing.

Attorney fees

Because New York handles closings through attorneys rather than title companies, every Long Island seller hires a real estate attorney. Your attorney drafts and negotiates the contract, orders your mortgage payoff, manages the escrow deposit, reviews the title report, clears any issues, and represents you at closing.

For a standard residential sale, seller attorney fees on Long Island typically run $1,800 to $3,500, usually as a flat fee. More complex transactions — an estate sale, title defects, a short sale, or unpermitted work that must be resolved — can run higher. It is one of the best values in the transaction: for a few thousand dollars you get a professional whose whole job is to protect your interests and make sure you get paid. Ask for the flat fee in writing and confirm what it includes, since some quote a base fee and add charges for extras.

Municipal compliance, permits, and certificates of occupancy

This is the cost that ambushes the most Long Island sellers, and it is very specific to our region. Before you can convey clear title, the town or village generally requires that all improvements on the property have proper permits and certificates of occupancy (C/Os) or certificates of completion. Decks, sheds, finished basements, fences, pools, hot tubs, and even some patios installed by a previous owner without a permit can hold up a closing until they are “legalized.”

Resolving these open items can cost $300 to $1,500 in permit and inspection fees for straightforward cases, and considerably more if you need an architect, an expediter, or actual construction to bring something up to code. The buyer's attorney will almost always ask for updated C/Os, so it is smart to pull the property's records early — ideally before you list — so surprises are handled on your timeline rather than under the pressure of a pending closing. On the East End, where properties often have pools, guest cottages, and extensive decking, this review is especially important.

Recording fees and miscellaneous closing charges

A handful of smaller administrative costs round out the closing: the fee to record the satisfaction of your mortgage (clearing the lien from public record), a payoff processing or “pickup” fee charged by your lender, and small charges for documents and overnight services. Individually minor, together they typically total $500 to $900 for a seller, and your attorney's closing statement itemizes each one.

Note that on Long Island the seller generally does not pay for the buyer's title insurance or the mortgage recording tax — those are buyer-side costs, a common misconception carried over from states where the seller pays for the owner's title policy.

Mortgage payoff

If you still owe money on your home, the outstanding loan balance is paid off directly from your sale proceeds at closing. This is not an added “cost” in the sense of a fee — you already owe it — but it is essential to include when you estimate your net proceeds, because it comes straight off the top.

Request a current payoff statement through your attorney, and be aware that the payoff figure runs slightly higher than your last statement's principal balance because it includes interest accrued to the closing date plus small fees. A HELOC or second mortgage must be paid off and closed as well, and any other liens — unpaid taxes, mechanic's liens, or judgments — cleared from the proceeds before you receive your check.

Prorated property taxes

Long Island is known for high property taxes, and at closing those taxes are prorated between you and the buyer based on the closing date. You are responsible for the property taxes covering the period you owned the home; the buyer takes over from the closing date forward.

Depending on where you are in the tax cycle, this proration can be a debit (you owe the buyer for taxes covering your ownership period) or a credit (the buyer reimburses you for taxes you prepaid covering theirs). Because Nassau and Suffolk have different tax calendars, this is exactly the kind of calculation your attorney handles precisely. For planning purposes, set aside the possibility of owing a few thousand dollars in prorated taxes depending on timing.

Pre-sale preparation: repairs, staging, and getting market-ready

Everything above happens at or around the closing table. But some of the most significant selling costs are spent before the sign goes in the yard, and they are almost entirely within your control.

Preparation costs vary enormously depending on the condition of your home. A well-maintained, move-in-ready home might need only a deep clean, some fresh mulch, and minor touch-ups — a few thousand dollars at most. A home that has not been updated in decades might benefit from paint, flooring, updated fixtures, or a pre-listing inspection to head off problems.

Cleaning and decluttering is the highest-return, lowest-cost step: a professional deep clean runs a few hundred dollars and makes an outsized difference in how a home shows. Painting in neutral tones is one of the most reliable ways to modernize a space. Minor repairs — a leaky faucet, a cracked window pane, a sticking door, worn caulking — signal that the home has been cared for, and neglecting them invites lowball offers and inspection demands later. Curb appeal matters enormously on Long Island's tree-lined streets: landscaping, power-washing, and a tidy entry can lift both showings and the offers they produce.

Staging is optional but increasingly expected at competitive price points, ranging from a consultation and light rearranging of your existing furniture to a full furniture rental for a vacant home. On the East End, where many homes are second homes shown to design-conscious buyers, professional staging or photography can be the difference between a listing that lingers and one that sells at a premium.

Some sellers also pay for a pre-listing inspection — a few hundred dollars to identify issues in advance, so you fix or disclose them on your own terms rather than being surprised during the deal when leverage has shifted. As a rough planning figure, budget from $2,000 for a light refresh to $15,000 or more for a home that needs meaningful updates. Spend where the return is clearest — cleanliness, paint, curb appeal, and functional repairs — and be cautious about expensive renovations that rarely return their full cost at sale.

Seller concessions

Even after you have priced and prepared the home, the final negotiated deal often includes concessions — money you agree to credit the buyer, usually to cover some of their closing costs or to address issues found during inspection. On Long Island, it is common for a buyer to request a credit toward repairs rather than have the seller complete the work before closing, and in softer market conditions buyers may ask for help with their own closing costs.

Concessions depend on the deal, the inspection results, and market conditions, but they are real money out of your proceeds. In a balanced market, a concession of 1% to 3% of the sale price is a reasonable planning contingency; in a hot market with multiple offers you may pay none at all. A modest cushion in your net-proceeds estimate keeps you from being caught off guard.

Capital gains tax: will you owe it?

One cost that generates a lot of worry — and a lot of misunderstanding — is capital gains tax. The good news is that most primary-residence sellers on Long Island owe nothing, thanks to a generous federal exclusion.

Under the federal home-sale exclusion, if the home was your primary residence for at least two of the last five years, you can exclude up to $250,000 of gain if you are single, or up to $500,000 if you are married filing jointly. “Gain” is not your sale price — it is roughly your sale price minus selling costs, minus your original purchase price, minus the cost of capital improvements you made over the years. For a large share of Long Island homeowners who have owned for a while, that exclusion covers the entire gain, and no capital gains tax is due at either the federal or state level.

It gets more complicated for sellers with very large gains — often long-time Hamptons owners — or for second homes and investment properties, which do not qualify for the primary-residence exclusion. Gains above the exclusion are taxed at federal long-term rates (0%, 15%, or 20% depending on income), and New York taxes capital gains as ordinary income on top. Keeping careful records of every capital improvement raises your cost basis and directly reduces any taxable gain, so it is worth digging up those receipts. For more detail, see our Capital Gains Tax Guide.

This is a “talk to your accountant” area — we are real estate professionals, not tax advisors, and the ownership tests and second-home rules have nuances a CPA should confirm. But for the typical owner-occupant selling a primary residence they have lived in for years, capital gains tax is often a non-issue.

Moving and other costs

Finally, do not forget the cost of leaving. A local move might run a few hundred to a couple thousand dollars; a long-distance move, several thousand or more. If your new home is not ready when you close, you may also need short-term storage or a rent-back arrangement with the buyer. These are easy to overlook in a net-proceeds estimate but very real on moving day.

The East End difference: CPF and Community Housing Fund taxes

If you are selling on the East End — East Hampton, Southampton, Montauk, Amagansett, Sag Harbor, Bridgehampton, Water Mill, Westhampton, Quogue, and the surrounding towns — you have probably heard about the Peconic Bay Community Preservation Fund (CPF) tax and the newer Community Housing Fund (CHF) tax. Sellers often assume these are their responsibility. In the standard East End transaction, they are not — they are paid by the buyer.

The CPF tax funds land preservation across the five East End towns and is charged at 2% (2.5% in East Hampton, Southampton, and Shelter Island) on the portion of the price above a town allowance — for example, $400,000 on improved land in East Hampton and Southampton, with no allowance on sales of $2 million or more. The Community Housing Fund, effective April 1, 2023, adds a 0.5% tax on the portion above a similar allowance, dedicated to local workforce and affordable housing. Both are, by default, buyer-paid.

Why does this matter to you as a seller? Two reasons. First, so you do not over-budget by assuming you owe a tax you do not. Second, because these taxes raise the cash a buyer needs to close, they shape the offers on your home — a savvy listing strategy accounts for the buyer's full cost of purchase. The mansion tax (1% and up on homes of $1 million or more, progressive at higher tiers) is likewise a buyer cost, though it influences how buyers think about crossing price thresholds. As always, allocation can be negotiated in the contract, so confirm the terms with your attorney.

Putting it together: two worked examples

Here are two realistic scenarios — estimates for illustration; your actual figures will vary — showing how the pieces add up to a net-proceeds number.

The pattern in both cases is the same: commission is the dominant cost, taxes and professional fees are relatively modest, and preparation plus concessions are the swing factors you can most influence.

How to reduce your cost of selling on Long Island

You cannot avoid the transfer tax or your attorney fee, but several levers meaningfully affect your bottom line.

Negotiate commission for the best net result — sometimes that means paying a strong agent a fair fee to get a higher price, sometimes negotiating the rate down where the service justifies it. Handle compliance and permit issues early, when you have time to shop for the cheapest path to resolution. Spend prep dollars where buyers actually respond — cleanliness, paint, curb appeal, working systems — and resist renovations that rarely return their cost. Keep records of capital improvements to protect against capital gains exposure. And price correctly from day one: an overpriced listing that sits, then reduces, almost always nets less than a well-priced home that draws competitive offers early.

For some sellers — an inherited property, a home that needs significant work, a tight timeline, or simply a desire to skip the prep-and-showings process — a direct cash sale is worth considering. Selling to a cash buyer typically means no commission, no staging, no repairs, and a fast, certain closing, in exchange for a price below full retail. Whether that trade-off makes sense depends on your priorities.