Hamptons Closing Costs for Buyers

Hamptons buyers routinely budget 2–4% of the purchase price for closing costs on a cash deal, and more with financing — meaningfully higher than most U.S. markets, because the East End layers two significant transfer-related taxes on top of the usual title and legal stack. None of it should surprise you at the closing table; all of it belongs in your offer math. Here's the ledger.

The Peconic Bay CPF Transfer Tax

Unique to the East End: purchases in Southampton and East Hampton towns pay the Community Preservation Fund transfer tax — the levy that funds the farmland and open-space preservation covered in farm-view homes. It runs 2.5% of the purchase price in both towns (2% preservation plus 0.5% water quality), customarily paid by the buyer, with an exemption on an initial portion of the price for improved property. On a $5M purchase, plan on roughly $115,000–$125,000 depending on the exemption — your attorney computes the exact figure.

The New York Mansion Tax

New York State's mansion tax adds 1% of the full purchase price on residential purchases of $1M or more — which, in the Hamptons, means nearly every purchase. (The higher graduated rates you may have read about apply only within New York City.) Paid by the buyer at closing.

Title, Legal & Lending

Title insurance is the next largest line — premiums are regulated in New York and scale with price. Add your real estate attorney's fee (New York closings are attorney-driven, as explained in the buying guide), survey and municipal searches, and recording fees. Financing adds the mortgage recording tax — roughly 1% of the loan amount in Suffolk County — plus lender fees, appraisal, and often a title markup, which is one reason many Hamptons buyers close cash and finance afterward.

What Buyers Sometimes Miss

Prorations of property taxes and fuel at closing; flood and wind insurance binders required before funding on waterfront purchases; and engineering, septic, and water testing during diligence. Luke provides every buyer a full closing-cost model alongside the offer strategy — so the number you bid is a number you've already absorbed.

Figures are customary and for planning only — rates and exemptions change; your attorney and title company confirm the exact amounts for your transaction.