What You Need to Know About Hamptons Real Estate Closing Costs
By Bill Williams – 25-Year Hamptons Broker & Full-Time Wainscott Resident
Let’s talk about the not-so-glamorous side of buying or selling a house in the Hamptons: closing costs. They’re not sexy, but they are real—and if you don’t plan for them, they’ll sneak up and slap your budget silly.
Whether you're buying your first beach house or unloading a legacy property in East Hampton, knowing what’s coming at the closing table can save you time, stress, and more than a few bucks.
For Buyers: What You’ll Be Paying For
You’ve found “the one”—a cedar-shingled beauty with a gunite pool and a short bike ride to the beach. Here’s what you’re likely on the hook for when it’s time to close:
1. Mansion Tax (1% of purchase price over $1M)
Welcome to New York. If your Hamptons dream home is over $1 million (spoiler: it is), you’re paying a 1% mansion tax. If you're spending $3 million, that’s $30,000 right off the bat.
2. Title Insurance
This protects you (and your lender) against title disputes. Figure around 0.4%–0.5% of the purchase price. On a $2 million home, that’s roughly $8,000–$10,000.
3. Attorney Fees
In New York, you need a real estate attorney. In the Hamptons, you want a local one who knows the quirks of East End property. Expect to pay $2,000 to $5,000, depending on complexity.
4. Mortgage-Related Costs (if financing)
These vary by lender, but plan for:
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Appraisal: ~$600–$1,000
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Bank attorney: ~$750
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Recording fees, tax escrows, etc.: ~$1,500–$3,000
And yes, you'll pay mortgage tax in Suffolk County:
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0.8% on loans under $500,000
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1.05% for loans over $500,000
(East Hampton buyers, I’m looking at you.)
5. Survey & Inspections
A new survey may run $1,500–$3,000. Home inspections usually cost $800–$1,500. Worth every penny to know what you're getting into—especially with older homes.
For Sellers: Not Just Walking Away with a Check
It’s not all profit. Here’s what you’ll owe on your way out:
1. Broker Commission
Typically 5%–6% of the sale price, split between listing and buyer’s agents. A $2M sale? You're paying $100,000–$120,000 in commission. Yes, it stings. No, you can't skip it if you want real results.
2. Transfer Tax (a.k.a. NYS Transfer Tax)
This is 0.4% of the sale price. On $2M, that's $8,000.
3. Peconic Bay Region Community Preservation Fund (CPF)
Buyers pay this, but sellers should be aware of it—it can affect deal structure.
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2% on most properties over $250,000
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Varies slightly by town (Southampton, East Hampton, Shelter Island, etc.)
Buyers often try to negotiate the price, knowing they'll owe this.
4. Attorney Fees
Just like buyers, sellers need a lawyer. Plan for $1,500–$3,000 depending on the deal.
5. Miscellaneous
Expect to pay for municipal searches, COs, and any unpaid utility balances. You may also owe prorated property taxes.
Bottom Line: Budget Wisely
In general, buyers should budget 2%–4% of the purchase price for closing costs (more if financing). Sellers should expect to part with 6%–8%, mostly due to commission.
These aren’t hidden fees—they’re just easy to overlook in the excitement of the deal. And when you’re spending $2–10 million on a Hamptons home, a few thousand here or there matters.
Final Thought: Hire Smart People
Have a good attorney. A savvy broker (hi). And a CPA if this is a part of a bigger financial picture. The Hamptons market isn’t complicated, but it is layered. Don’t wing it—work with people who know what they're doing.
If you're thinking of buying or selling out east and want a straight-shooter who’s been doing this for 25 years, give me a call.
—Bill Williams
Founding Broker, Compass Hamptons
Full-Time Wainscott Resident
25 Years Selling Hamptons Real Estate
