Description | Typical Cost |
---|---|
Real Estate Commission | 5% to 6% of the sale price |
Attorney Fees | $850 to $1,600 |
https://www.njrealtor.com/consumers/realty-transfer-fee-calculator/ | https://www.njrealtor.com/consumers/realty-transfer-fee-calculator/ |
Title Search and Insurance | $500 to $1,000 |
Survey Costs | $300 to $600 |
Miscellaneous Fees (e.g., courier, recording) | $100 to $300 |
Property Taxes (if unpaid) | Prorated |
2023 Example 1: Seller Closing Costs: $91,435.85 (6.785%) | Buyer Closing Costs: $22,273.34 = 1.653%
2023 Example 2: Seller Closing Costs: $33,567.15 (6.10%) | Buyer Closing Costs: $11,437.1 (2.08%)
2023 Example 3: Seller Closing Costs: $54,700.50 (6.21%) | Buyer Closing Costs: $16,563.86 (1.88%)
2023 Example 4: Seller Closing Costs: $26,265.98 (5.97%) | Buyer Closing Costs: $10,233.76 (2.32%)
2023 Example 5: Seller Closing Costs: $46,772.15 (6.59%) | Buyer Closing Costs: $15,600.31 (2.20%)
Who Pays Real Estate Closing Costs In NJ In 2023?
Both sellers and buyers are responsible for paying certain closing costs on a property in New Jersey. Generally, the seller pays their attorney fees, transfer fees, and realtor commissions.
Buyers, on the other hand, pay their attorney’s fees and some prepaid costs, such as the real estate title fees for the property or a year of homeowners insurance and property taxes.
In the table below, we will show you who generally pays closing costs in NJ:
Closing costs | Who pays it? |
---|---|
Agent commissions | Seller |
Survey fee | Buyer |
Attorney fees | both parts |
Appraisal fee | Buyer |
Title search and insurance | Buyer |
Mortgage loan rates | Buyer |
Certificate of occupancy / transfer fees | Seller |
Closing costs are fees paid to sell or buy a home in New Jersey.
After the closing, the buyer’s attorney forwards the mortgage pay off to the seller’s mortgage lender and records the deed and mortgage. The buyer’s attorney also forwards the necessary documents to the title company to obtain a title insurance policy and forwards the required documents to the lender. The buyer’s attorney will also pay certain expenses such as taxes, real estate commissions, etc. from the closing proceeds as set forth on the closing statement.
Realty Transfer Tax in New Jersey
When you sell a home in the state of NJ, the state charges a realty transfer fee. This fee will be based on the bracket of your sale price. Just like your income tax; there will be a different percentage for each bracket. On average, this fee tends to be .8 or less than 1% of your sale price. Make sure to check out the discounts that New Jersey offers! If you are a veteran, disabled, or senior, make sure to ask your title company to ensure you don’t miss out on these discounts!
Settlement Fee
This will the charge from the title company for handling the closing. This will be split evenly between the seller and buyer. It usually tends to run $250 per person.****
Deed Prep
The title company will take care of ordering the deed for you but you will need to pay an attorney to prepare the deed for you. This can range anywhere from $100-$300 depending on the attorney.
Miscellaneous Fees
You’ll also probably see a list of miscellaneous fees on your settlement statement. Some of these charges can come from paying off your mortgage, recording fees, or some sort of UPS or overnighting fee to get your documents to you.
Home Inspections/ Repairs (if necessary)
Beware, you may not see these fees on the settlement fee! I always like to warn sellers that if a home inspection repair is needed or defects with the house, this might be something you are paying for either before or at the time of settlement
Well Water Certificate
If you happen to own a home in a county with well water, the county will also require you to get a Well Water Certification. This usually runs the seller about $465
Certificate of Occupancy/ Smoke Detector Inspection
This depends upon the city that you are selling in but usually, this will cost about $50 to $100
2% Non-Resident Withholding
Lastly, I want to clear one thing up. This fee does not mean that the state of new jersey has an “exit tax” for sellers. This means that if you are not a resident of NJ and you are selling your property, the state will withhold 2% of the sale price. This is just like when your taxes and withheld in your paycheck. Depending on your taxes, you may or may not be getting some of the 2% back.
What are the RTF rates on standard transactions and "new construction" transfers?
For total consideration not in excess of $350,000:
See the Realty Transfer Fee Rate Schedule for no exemption, partial exemption, and new construction for total consideration not in excess of $350,000.
For total consideration in excess of $350,000:
See the Realty Transfer Fee Rate Schedule for no exemption, partial exemption, and new construction for total consideration in excess of $350,000.