The Real Estate Scam

2022-07-23 09:59 - General

On Thursday I closed the sale of my Manhattan Co-Op apartment. Going in, I had been estimating losing ten percent to all the fees and taxes. I thought that was a high estimate, but I set that expectation to keep myself comfortable. What actually ended up happening?

ItemAmount
Seller's agent fee3%
Buyer's agent fee3%
Co-Op "flip tax"2%
State and city real estate taxes1.8%
Attorney's fees0.5%
(Building's) Managing agent fee0.1%
Total10.5%

Ouch. I'm especially upset by the huge broker/agent fees. It's a total racket. There are "once percent" seller agents, which with hindsight I wish I had selected. I only made 37.5% over twelve years on the "investment" (but your home is not an investment!). Losing over 10% of the higher number (14.4% of the lower) stinks.

Yes, there's an extra 0.1% that rounded down out of the line items, the total was calculated independently.

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