How Much Does It Cost to Buy a House in New Jersey?

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By Jon Stubbs Updated May 17, 2024

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The average home buyer in New Jersey spends between $38,989 and $140,233 when purchasing a $512,908 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 $2,565 back on an average-priced home in New Jersey!

Clever will connect you with a top local agent and send you a check after closing. Contact Clever for full-service realtor recommendations.

Average closing costs in New Jersey

Expense Amount
Earnest money deposit (1-3%) $5,129 to $15,387
Down payment (3.5-20%) $17,952 to $102,582
Cash reserves $5,432 to $8,148
Closing costs (1.72%) $8,814
Inspection $204
Appraisal $208
Moving $1,250 to $4,890
Total $38,989 to $140,233
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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 $513
Recording fee $205
Title service fees $803
Origination fee $2,565
Underwriting fee $600
Discount points $4,103 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 $8,814
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Does the buyer or seller pay closing costs in New Jersey?

The seller typically pays the bulk of the closing costs in New Jersey. The seller is responsible for costs like title insurance, real estate transfer tax, and recording fees. The seller also pays their listing agent.

Traditionally, the seller has covered the buyer's agent fees as well. However, a November 2023 lawsuit decision against the National Association of Realtors makes it likely that buyers will be responsible for their own agent's fees going forward.

Will the NAR lawsuit change how real estate commission works?

On March 15, 2024, the National Association of Realtors agreed to pay $418 million in damages to settle a real estate commission lawsuit the industry group lost in November 2023. 

While the full impact of the settlement is yet to be determined, experts believe that the change will eventually lead to lower buyer's agent commissions and give buyers the ability to negotiate those commissions based on the services they need. 

The terms of the settlement are scheduled to take effect in mid-July 2024. But, the settlement hasn't been officially approved yet, and it could be delayed or changed by objections. We'll continue to monitor the status of the settlement and the effects it has on the real estate industry.

» READ MORE:

Keep in mind, closing costs are often negotiable. Motivated sellers will sometimes agree to pay for some of the buyer's closing costs. 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 $223 to $755 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 in 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!

Find your agent through Clever, qualify for cash back!

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.

Methodology

The Clever team of researchers gathered data for property taxes, transfer taxes, and recording fees using publicly available information. We found average costs for attorney fees, title insurance, and other services by requesting quotes from local providers. 

Home values are based on Zillow data as of May 2024.

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Authors & Editorial History

Our experts continually research, evaluate, and monitor real estate companies and industry trends. We update our articles when new information becomes available.

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