What Are the Closing Costs When Selling a Home in New Jersey?

By Stefanie Prettyman

With over 15 years in real estate, Stefanie Prettyman is an award-winning realtor who leads Premiere Home Group in delivering unmatched service across NJ and PA.

A lot of sellers think selling a home is as simple as listing it and waiting for offers. However, there are many hidden costs involved that can add up quickly. Without a clear understanding of these expenses, you could be caught off guard when it’s time to close. That’s why today, I’m breaking down the key costs you’ll face when selling your home in New Jersey so you can prepare properly:

1. Mortgage payoff. The largest cost you’ll face is paying off your mortgage. The amount remaining on your mortgage will be deducted from the sale price at closing. Before you list your property, you should know exactly how much you owe so you’ll know the amount that goes into your mortgage balance. Make sure to have a payoff figure from your lender before finalizing your sale.

2. Real estate sales expenses. Next, you’ll need to account for real estate sales expenses, particularly agent commissions. Your real estate agent typically receives a percentage of the sale price, which you’ll negotiate ahead of time. Remember, you may also be responsible for the buyer’s agent fee, which is often included in the overall commission. Be sure to discuss all these fees upfront so you can plan accordingly and avoid any misunderstandings later on.

3. Realty transfer tax. In New Jersey, you’ll be required to pay a realty transfer tax, which is about 1% of the sale price. If you’re moving out of state, a 2% exit tax applies. However, if you’re over 65, the transfer tax rate is reduced, which can be a significant savings for older homeowners when selling.

4. Legal fees. While it’s not mandatory, many sellers choose to hire an attorney to help navigate the legal aspects of the sale. Legal fees in New Jersey typically range from $1,200 to $2,000. While optional, hiring an attorney can provide peace of mind knowing all your legal details are handled correctly.

5. Title expenses. Title-related expenses are another important consideration. These can include notary fees, wire fees, and the costs associated with ordering payoffs. If you don’t hire an attorney, you will also be responsible for paying half of the buyer’s title insurance. These fees can vary, but they are an essential part of the process and should be accounted for in your budget.

6. Township requirements. In New Jersey, most municipalities require certain certifications before the sale is completed. This typically includes a certificate of occupancy or fire safety certification, which costs between $90 and $200. If your property has a well or septic system, additional reports may be required to confirm they are in working order. These are crucial to ensure the property is up to code and ready to be sold.

Selling your home doesn’t have to be overwhelming. Understanding the costs upfront will make the process easier to manage. Keep in mind that every home sale is different. Your costs may vary depending on the specifics of your property and the deal itself. If you’re ready to sell, you can call or text me at 609-954-5206 or email me at sprettyman@luxphg.com. I offer a customized cost breakdown for sellers like you to help you understand what to expect so you can plan ahead for your home deal.