The exchange rate is not
where the money goes
On a two million dollar purchase the spread on the conversion routinely costs more than the attorney, the inspection and the title search combined.
Before you read on
- General guidance. We are not a bank, a broker-dealer or a money services business, and we do not handle client funds.
- Currency movements are outside anyone's control. Nothing here is a forecast or advice on when to convert.
Step 1What the transfer actually costs
Two numbers matter: the wire fee, which is trivial, and the spread against the interbank rate, which is not.
| Route | Typical spread | Fees | Cost on $2,000,000 | Speed |
|---|---|---|---|---|
| High street bank, retail rate | 1.5–3% | $25–$60 | $30,000–$60,000 | 1–3 days |
| Bank, negotiated for a large sum | 0.3–0.8% | $25–$60 | $6,000–$16,000 | 1–3 days |
| Specialist FX broker | 0.2–0.6% | Often none | $4,000–$12,000 | 1–2 days |
| Private bank relationship | 0.1–0.4% | Waived | $2,000–$8,000 | Same day |
Ranges are indicative for 2026. The lesson holds whatever the numbers do: ask for the all-in rate you will receive, in writing, and compare it against the mid-market rate on the same screen. A quote of 'no fees' with a two per cent spread is the most expensive option on the table.
Large amounts are negotiable at almost every bank, and the desk that quotes you the standard retail rate is rarely the desk that can improve it. Ask to speak to the treasury or FX desk, quote a competing rate, and be prepared to move the business.
Step 2The timetable around a closing
| When | What has to happen | Risk if late |
|---|---|---|
| At contract | 10% deposit to the seller's attorney escrow | The contract is not fully executed until the deposit lands |
| 4–6 weeks before closing | Convert and move the balance into the US account | A wire arriving on the closing date is a wire that does not clear |
| 2 weeks before | Confirm the account can send the amount in one transfer | Daily and per-transaction limits catch people out |
| 3–5 days before | Order the certified funds or set up the closing wire | New York closings still often use bank cheques |
| Closing day | Funds released against the deed | A failed wire delays the closing and can breach the contract |
The single most common failure is a large first transfer into a brand-new US account. The bank has no history for the customer, a seven-figure inbound wire from abroad triggers review as a matter of routine, and the funds can sit unavailable for a week or more. Tell the branch before the money moves, and have the documentation ready.
Step 3Source of funds: what you will be asked for
Sale of a property, sale of a business, salary and bonus over years, an inheritance, a gift. Each has its own paper: a completion statement, share transfer documents, tax returns, a probate document, a signed gift letter.
Statements showing the funds in an account in your name, ideally for several months. Money that appeared last week from a third party is what compliance departments exist to question.
Send from an account in the buyer's own name. A transfer from a relative, a company, or an account in another jurisdiction with a different name will be queried and may be returned.
US financial institutions report cash transactions above $10,000, and international transfers are monitored. Separately, a US person with foreign accounts above the threshold has FBAR and FATCA obligations. None of this is a reason not to transfer; all of it is a reason to be consistent and documented.
Step 4Managing the currency risk
Between an accepted offer and a closing there are commonly eight to twelve weeks. A five per cent currency move over that period is unremarkable, and on a two million dollar purchase that is a hundred thousand dollars of price you did not agree to.
| Approach | What it does | Consider when |
|---|---|---|
| Convert at contract | Removes the risk entirely | The purchase is certain and the funds are available |
| Forward contract | Fixes a rate now for a date ahead, usually against a deposit | The closing date is known and the deal is signed |
| Convert in tranches | Averages the rate | The timetable is uncertain |
| Hold and convert at closing | Keeps the upside and the downside | Only if the outcome either way is affordable |
A forward is a contract you must complete. If the purchase collapses you still owe the currency, so match it to a signed contract rather than an accepted offer.
Occasionally the closing agent will accept a foreign wire, but most New York closings expect cleared US funds and often bank cheques. Plan on a US account holding the money weeks in advance.
No limit on the amount transferred through the banking system. There are reporting obligations, and your home country may have its own outbound rules — check both sides.
Almost always a new account with no history, a name mismatch between sender and recipient, or an incomplete purpose of payment. All three are avoidable by telling the bank in advance.
Yes. It removes the freeze risk, gives you a place to hold the deposit, and is required in practice for closing funds, mortgage payments and utilities afterwards.
Transferring your own capital is not income and is not taxed. Income earned from the property afterwards is, and holding US property creates estate tax exposure that should be planned before the purchase, not after.
Let’s talk first
Tell us the purchase price and the timetable, and we will map out when the funds need to move and what your bank will ask for.
RELATED GUIDES
Recent transactions
A sample of the sales, purchases and rentals we acted on in 2025 and 2026.
Real estate brokerage services are provided through R New York.
Important notice
The figures on this page are general information as of August 2026 and do not represent an offer, a quote, or a guarantee of any transaction terms. Reinvent NY does not provide legal, tax, or investment advice. Confirm anything material with an attorney and a CPA before you act on it. Nothing here is a solicitation to invest, and no return is promised. Real estate brokerage services are provided through R New York.