Costs to buy a house in New Jersey | New Jersey closing costs | New Jersey house buying calculator | Homeownership costs | How to save when buying a home in New Jersey
The average home buyer in New Jersey spends between $35,384 and $128,420 when purchasing a $471,719 home — the state median value.
Keep in mind, this is just the cost of buying a home. After you close, you'll still need to budget for all the ongoing costs of homeownership.
Luckily, Clever Real Estate can help make buying a home more affordable. Working with a Clever agent means you'll not only get great service from start to finish, but you could also be eligible for up to 0.5% cash back after closing. That's about $2,359 back on an average-priced home in New Jersey!
Put money back in your pocket with Clever Cash Back. Clever will connect you with a top, local agent and send you a check after closing.
✅ Work with a full-service realtor from a top broker
✅ Eligible buyers can get cash back
✅ Clever is 100% free, with zero obligation
Average cost to buy a house in New Jersey
| Expense | Amount |
|---|---|
| Earnest money deposit (1-3%) | $4,717 to $14,152 |
| Down payment (3.5-20%) | $16,510 to $94,344 |
| Cash reserves | $4,257 to $6,386 |
| Closing costs (1.75%) | $8,237 |
| Inspection | $204 |
| Appraisal | $208 |
| Moving | $1,250 to $4,890 |
| Total | $35,384 to $128,420 |
Buyer closing costs in New Jersey
While the other costs to buy a house in New Jersey are pretty transparent, New Jersey closing costs are a bit more nuanced. They're actually a series of smaller costs lumped together into one total. Here's a breakdown of all of the New Jersey closing costs you'll likely pay when buying a home.
| Closing cost | Amount |
|---|---|
| Closing fee | $472 |
| Recording fee | $205 |
| Title service fees | $803 |
| Origination fee | $2,359 |
| Underwriting fee | $600 |
| Discount points | $3,774 per point |
| Lender's title insurance | $25 |
| Owner's title insurance | Typically paid by seller |
| Prorated property tax | Varies |
| Transfer tax | Typically paid by seller |
| Total | $8,237 |
Keep in mind, closing costs are often negotiable. However, to win the negotiation battle, you'll need a great agent who can work out a deal with the seller. Clever can match you with a top agent in your area that can get the seller to shoulder more of the above costs.
Contact us at Clever for top agent recommendations.
Cost to buy a house in New Jersey calculator
Ongoing costs of homeownership in New Jersey
Unfortunately, the cost to buy a house is just the beginning. After closing, you'll officially own the home and begin paying for the ongoing costs of homeownership.
Besides the expenses outlined above, you'll also want to consider private mortgage insurance (PMI) and homeowner's association (HOA) fees.
- If you pay less than 20% as a down payment on your house, you'll probably have to pay PMI monthly until you get to 20% equity. For the average New Jersey homeowner, this is between $205 to $695 a month.
- Some neighborhoods have HOA fees for the care and maintenance of common areas. The national average is around $250 per month.
» MORE: The true cost of homeownership
Top ways to save money when buying a house in New Jersey
1. Look into better financing options
Paying off debts and getting your credit in the best shape possible before applying for a loan will help you get a better interest rate, which will lower your monthly payments for the life of the loan.
You can also shop around to compare lenders so you get the lowest fees and interest rates available. It may be a good idea to enlist the help of a mortgage broker if you're not sure how to go about vetting lenders.
2. Participate in home buyer programs New Jersey
New Jersey has a few programs targeted for low-income buyers to make homeownership more affordable. The New Jersey Department of Community Affairs has several housing programs that provide affordable housing and prevent homelessness in the state.
Likewise, the New Jersey Housing and Mortgage Finance Agency (NJHMFA) offers favorable lending options and down payment assistance to eligible buyers. There are also a handful of city-specific programs you may be eligible for — the HUD lists a few on its website.
» MORE: First-time home buyer programs everyone should know about
3. Partner with an expert agent
Some real estate companies, like Clever, offer home buyers a percentage of their home's price back after the sale finalizes.
That means if you work with a Clever agent, you'll not only get the expertise that helps you get the best deal possible — you could also get up to 0.5% of your home price back after closing!
Clever matches you with top local agents so you can compare options and choose the best fit. And eligible buyers can get cash back after closing.
Fill out the form below and get started now. Clever's service is 100% free with no obligation.
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