How Much Does It Really Cost to Buy a Home in Brooklyn?

Buying a home in Brooklyn is a dream for many, but it’s important to know exactly what you’re signing up for—financially—before you start house-hunting. While the sale price is the headline number, the real costs of buying a home in Brooklyn go much deeper. Here’s a friendly, step-by-step guide to help you budget smartly and avoid surprises along the way.

1. The Down Payment

Most buyers in Brooklyn put down between 10% and 20% of the purchase price, though some programs allow as little as 3%. For a $700,000 home, that means you’ll need anywhere from $21,000 to $140,000 upfront. The more you put down, the lower your monthly payments and the better your chances of getting approved for a mortgage.

2. Closing Costs

Brooklyn buyers should budget for an additional 2% to 5% of the purchase price for closing costs. These include:

• Attorney fees (required in NY, typically $1,500–$3,000)
• Title insurance and search
• Appraisal and survey fees
• Bank fees and loan origination charges
• Mansion tax (1% on homes over $1 million)
• Recording and transfer taxes
• Other miscellaneous fees

3. Mortgage-Related Expenses

Beyond the down payment, your lender may require:

• Mortgage application and underwriting fees
• Points to lower your interest rate
• Private mortgage insurance (PMI) if your down payment is under 20%

4. Home Inspection and Upfront Costs

Before you close, you’ll want a home inspection (typically $400–$800), and possibly additional inspections for pests or structural issues. Some buildings may require application fees or move-in deposits, especially for co-ops and condos.

5. Moving Expenses and Immediate Repairs

Don’t forget to budget for moving costs! In Brooklyn, hiring movers can range from $1,000–$3,000 for a local move, depending on how much you’re bringing. You may also face immediate repairs, painting, or upgrades right after closing.

6. Ongoing Costs

• Property taxes: Vary widely, but often several thousand dollars per year
• Homeowners insurance: Usually $1,000–$2,500 annually
• HOA or co-op fees: Can range from a few hundred to over a thousand dollars per month
• Utilities and maintenance: Plan for regular bills and repairs

7. Tips for Budgeting and Saving

• Get pre-approved to understand your true price range
• Ask your agent for a buyer’s net sheet to estimate all costs
• Shop around for lenders and attorneys to get the best rates
• Build a cushion for unexpected expenses

Conclusion: Plan Ahead for Peace of Mind

Buying a home in Brooklyn is a big milestoneand a big investment. By understanding all the costs, from the down payment to the first utility bill, you’ll be ready to make smart decisions and enjoy your new home with confidence. Happy house hunting!