The sale price is not the number you walk away with. Between the contract and the closing table, a handful of costs and adjustments come out of the proceeds, and a few rules decide who pays what. Knowing them early makes it easier to compare offers and plan your next move.
This guide explains the costs most Dutchess County sellers see, in plain terms. It is a starting point, not tax or legal advice: your attorney and accountant confirm the numbers for your sale. Michael Dunstan, a RE/MAX Town & Country listing agent with more than 200 completed transactions, can go over the likely costs with you before you list.
The New York State real estate transfer tax
New York charges a transfer tax when real property changes hands. According to the Department of Taxation and Finance, the rate is two dollars for each $500 of consideration, or fractional part of it, which works out to 0.4 percent. The seller, called the grantor, pays it. If the seller does not pay or is exempt, the buyer becomes responsible.
Here is an example on a round, illustrative price. On a $500,000 sale, the tax is $500,000 divided by $500, which is 1,000, times $2, for $2,000.
The tax is reported on Form TP-584, the combined real estate transfer tax return. Outside New York City, it is filed with the county clerk where the property sits, and the form and payment are due no later than the 15th day after the deed is delivered. In practice, your attorney prepares the form and the tax is paid from your proceeds at closing. Your attorney will also confirm whether any local transfer tax applies to your property.
The mansion tax, and why it usually is not yours
New York also has an additional tax, commonly called the mansion tax, of 1 percent of the sale price on residential property when the consideration is $1 million or more. The Department of Taxation and Finance says the buyer pays it. If the buyer does not pay or is exempt, the seller must pay.
For most sellers this is a line on the buyer’s side of the closing statement, not yours. It can still shape negotiations near the $1 million mark, since a buyer’s cost rises by 1 percent of the whole price once the sale reaches that threshold.
Brokerage commission and attorney fees
The brokerage commission is often the largest cost of selling. It is fully negotiable, and it is set out in writing in your listing agreement before your home goes on the market. Ask what the fee covers, from pricing and preparation through marketing, negotiation and closing, so you can weigh it against the service rather than the number alone.
You will also want a real estate attorney to draft or review the contract, handle the title and municipal search issues that come up, prepare the transfer tax forms and represent you at closing. Attorney fees vary by attorney and by the complexity of the sale. Ask for the fee in writing when you hire one, along with any separate charges for things like courier or recording fees.
Other smaller items can appear, depending on your sale: fees to clear an open permit, a final water or utility reading, or a credit you agree to give a buyer after the inspection. None are automatic, and each one is something you can discuss before you sign.
Paying off your mortgage
If you have a mortgage or home equity line, it is paid off from your proceeds at closing. Your attorney orders a payoff statement from your lender showing the exact balance, interest through the closing date and any fees. If you have a home equity line, ask that it be closed, not just paid to zero.
After payoff, the lender releases its lien and that release is recorded so the buyer takes clear title. Your attorney follows up to make sure it happens. Keep your own copy of the payoff letter and the closing statement with your tax records.
Property tax adjustments in Dutchess County
Property taxes are usually adjusted between buyer and seller at closing so each side pays for the time they owned the home. In Dutchess County, the schedule matters, because the bills come at different times of year. The county’s Real Property Tax office explains the cycle:
Town and county taxes: bills go out in January and are payable without interest by the last day of February.
School taxes: school fiscal years run from July 1 through June 30, and single-payment school taxes are generally due in September or early October.
Village taxes, where they apply: the village fiscal year runs June 1 through May 31, with taxes payable June 1 through July 1.
Because you often pay these bills in advance, you may get a credit back from the buyer for the part of the year after closing. If a bill is due and unpaid at closing, it is typically paid from your proceeds. Your attorney calculates the exact figures from the actual bills.
The Property Condition Disclosure Statement
New York requires sellers of most residential property to complete and sign a Property Condition Disclosure Statement and deliver it to the buyer before the buyer signs a binding contract, under Real Property Law section 462. The form asks about the property’s systems, environmental conditions, water, septic and structure, and now includes questions about flooding, such as whether the property is in a FEMA designated floodplain, whether there is flood insurance, and whether a FEMA elevation certificate is available.
The rules changed in 2024. Under the law signed in 2023 (Chapter 484), which took effect in March 2024, the old option of giving the buyer a $500 credit at closing instead of completing the form was removed. Today the form itself is the requirement. Under section 465, a seller is liable for actual damages for a willful failure to meet the disclosure requirements. Fill it out carefully and completely, answer “unknown” only when you do not know, and have your attorney review it.
Capital gains and the home sale exclusion
Many sellers of a primary home owe no federal tax on the gain. The IRS allows you to exclude up to $250,000 of gain, or up to $500,000 on a joint return, if you meet the ownership and use tests: you owned the home for at least two years and lived in it as your main home for at least two years out of the five years before the sale. On a joint return, only one spouse needs to meet the ownership test, but both must meet the use test.
You generally cannot take the exclusion if you excluded gain on another home sold within the two years before this sale. Bring your purchase records and receipts for improvements to your accountant, since they affect your basis and the size of any gain.
Sources
This guide explains general practice in New York and is not legal or tax advice. Your attorney and accountant confirm what applies to your sale.
