On average, sellers in New Jersey can expect to pay 3.30% of their home's final sale price in closing costs. For a $492,394 home — the median home value in New Jersey — you'd pay around $16,235.
In most cases, your closing costs will simply be deducted from your sales profits. You'd only have to pay out of pocket if your profits are lower than your closing costs — which rarely happens.
The biggest closing expense for sellers in New Jersey is usually real estate agent commission fees. However, you can easily save thousands on realtor commissions by using an agent-matching service like Clever Real Estate.
Clever pre-negotiates low listing fees with experienced agents from top brokerages so you can keep more money in your pocket after selling your house.
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Keep reading to find out which closing costs sellers are responsible for in New Jersey and how much you can expect to pay for each of them. Need estimates for your sale? You'll also find our New Jersey seller closing costs calculator!
How much are seller closing costs in New Jersey?
Seller closing costs are the fees you pay when you finalize the sale of your home in New Jersey. Most of these expenses are required in order to fully transfer ownership of the property to the buyer.
In New Jersey, you'll pay about 3.30% of your home's final sale price in closing costs, not including realtor fees.
Keep in mind that this is only an estimate. Although most closing costs are unavoidable, you can negotiate which expenses will be covered by you or the buyer.
To get the most out of negotiations, you'll need an experienced agent who has your best interests in mind. Clever can help by connecting you with a top agent in your area who can negotiate on your behalf and get you a great deal.
Who pays closing costs in New Jersey?
Buyers and sellers each pay unique closing costs to finalize a real estate transaction. In New Jersey, sellers are typically responsible for paying title fees, transfer taxes, owner's title insurance expenses, and recording fees.
Title fees: 0.13%
Title fees cover the costs of your title search and title transfer.
When you sell your home, you'll need to transfer legal ownership of the property to the buyer. Before this can happen, your settlement agent will perform a title search to make sure there aren't any claims or liens on your property.
In New Jersey, buyers and sellers usually pay for their own title company or closing agent, but this isn't always the case. Make sure to check with your realtor if you're not sure.
Owner's title insurance: 0.31%
An owner's title insurance policy will protect the buyer in case there's a problem with the property title, such as clerical errors or ownership disputes. If any issues come up, title insurance will cover any legal fees or reimburse the value of the home.
In New Jersey, title insurance usually costs around 0.31% of your home's final sale price — or $1,519 for a $492,394 home. However, the exact rate for your property might vary. Most title companies in New Jersey use tiered pricing to determine how much you'll pay for a policy based on your home's value.
Seller cover the cost of an owner's title insurance policy in most cases in New Jersey, but you can always negotiate who pays this closing fee.
New Jersey Transfer tax: 0.85%
New Jersey will charge you about 0.85% of your home's sale price to transfer the title to the new owner. For a $492,394 house — the median home value in New Jersey — you'd pay around $4,185.
However, transfer taxes vary a lot depending on your home value. In New Jersey, the transfer tax rate can be anywhere from $2 to $6.05 for every $500 of a house's sale price.
The more expensive a property is, the higher the transfer tax rate will be. For example, a home valued at $200,000 would be taxed at a rate of $3.35 per $500, which would come out to a total of $935. On the other hand, a home sold for $600,000 would be taxed at a rate of $5.30 per $500, which would cost the seller $5,185.
To find out how much you'll owe in transfer taxes, you can check out this calculator or ask your real estate agent.
New Jersey recording fees: $5
Your city or county will charge a fee to legally record your property's deed and mortgage information. The exact amount will vary based on your location, but you can expect to pay about $5 in New Jersey — although you might be able to negotiate for the buyer to cover this cost.
Most counties will have information about their recording fees on their websites. For example, Cumberland County charges a fee of $45 for the first page of property recording information and $10 for each additional page. Similarly, Sussex County charges a recording fee of $40 for the first page and $10 for each additional page.
Buyer incentives: 2%
Buyer incentives make it easier and more appealing for a buyer to purchase your house. In tough markets, offering to pay some of the buyer's closing costs, providing repair credits, or including valuable items in the sale of the home can encourage more people to make an offer.
On average, sellers spend about $9,848 on buyer incentives in New Jersey.
Don't forget about property taxes!
When you sell a home in New Jersey, you'll still have to pay property taxes for the months you owned the property. Using this prorated system, you won't be on the hook for the full 12 months of taxes. However, this does make it more difficult to estimate how much you'll owe at closing.
The average property tax rate in New Jersey is 2.47%, but this can vary quite a bit depending on your county.
For instance, Camden has the highest property tax rate in the state at 3.46%. Meanwhile, Cape May residents have the lowest property tax rate at just 1.51%.
Be sure to check with your real estate agent so you can find out exactly you'll need to pay in property taxes.
Other New Jersey closing costs for sellers
Every New Jersey home sale is unique, and many come with a few surprise fees. For example, you may have to pay out of pocket for a property appraisal on your Newark condo, or you might get a penalty for paying off the mortgage on your Paterson home early.
» LEARN: The total cost of selling a house
Regardless of your situation, you should be ready for a few miscellaneous expenses. Some of the most common extra fees include:
- Homeowners Association (HOA) fees
- Mortgage payoff and/or prepayment penalties
- Property appraisal fees
- Settlement or attorney fees
Your realtor will have a better estimate of your closing costs since these fees can change based on the unique factors of your home and your New Jersey neighborhood.
A great agent will also have valuable local knowledge that will allow them to connect with buyers and understand what features they want most in a new home. When you use Clever, you'll be paired with an experienced local realtor who can provide you with the insights you need to maximize your profits.
Get matched with the best local agents from top brokerages and get pre-negotiated listing fees of just 1.5%.
Clever's service is 100% free, with zero obligation. Interview as many agents as you like until you find the perfect fit — or walk away at any time.
New Jersey closing costs calculator
Your exact closing costs will ultimately vary based on your home's value, local fees, and negotiations with your buyer.
You can use this New Jersey closing costs calculator to see how much money you'll actually take home after the sale.
How to save on New Jersey closing costs
Although closing costs aren't usually the biggest expense for sellers in New Jersey, there are a few things you can do to reduce these fees.
Shop around for better prices
It's possible to save some money by shopping around for cheaper rates on services like title insurance and closing fees.
However, these costs are fairly low and tend to be pretty consistent from company to company. When you're already dealing with fees for inspections, repairs, and appraisals, checking out several different companies to find a $50 discount probably isn't worth the hassle!
Negotiate for the buyer to pay
If you're located in a hot seller's market with more interested buyers than available homes, you can ask the buyer to pay for some of your closing costs.
Buyers expect fierce competition in these market conditions, so most will be willing to compromise on certain fees so you'll accept their offer on your New Jersey home.
Save on realtor fees
The best way to reduce your selling costs is to find a realtor who charges lower listing fees. In New Jersey, real estate commission costs an average of $25,260 — that's usually more expensive than the rest of your closing costs combined!
Thankfully, there's a way to save big by selling with Clever. With listing fees of just 1.5%, you'll save up to 50% on realtor commission, putting more money in your pocket.
Clever matches you with top-rated agents from major brokerages, like Keller Williams and RE/MAX. Sellers get pre-negotiated 1.5% listing fees. Buyers can get cash back after closing!
Clever's service is 100% free with no obligation. Interview as many agents as you like until you find the perfect fit — or walk away at any time.
Frequently asked questions
How much are seller closing costs in New Jersey?
In New Jersey, expect to pay about 3.30% of your home’s sale price in closing costs — not including realtor fees. At the median home value of $492,394, this equates to around $16,235 at closing. Learn more about what makes up seller closing costs in New Jersey.
Who pays closing costs in New Jersey?
Buyers and sellers each pay for different closing costs to finalize a sale. In New Jersey, sellers typically pay for title fees, transfer taxes, owner's title insurance expenses, and recording fees at closing. Learn more about who pays closing costs in New Jersey.