Closing costs are a normal part of every home sale, but many sellers are surprised by how these fees add up—or which side pays what. In New Jersey, both buyers and sellers contribute to closing expenses, although the seller typically carries a larger portion due to commissions and state transfer taxes.
Understanding these costs early can help you avoid surprises and estimate your net proceeds more accurately.
Seller’s Typical Costs (New Jersey)
Most NJ sellers are responsible for the following:
1. Real Estate Commissions (5–6% of sale price)
This is usually the largest closing cost for sellers. The fee is split between the listing agent and the buyer’s agent. While the total percentage can vary by agreement, 5–6% is the common range in North Jersey.
2. New Jersey Realty Transfer Fee (RTF)
This state-imposed fee is based on the sale price and increases as the price bracket rises.
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Higher-priced homes pay a larger fee.
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Seniors, disabled individuals, and low/moderate-income sellers may qualify for reduced rates.
3. Attorney Fees
In New Jersey, attorneys handle contract review, negotiations, title coordination, and closing documents. Seller attorney fees typically range from $1,000–$1,500+ depending on complexity.
4. Smoke/CO Detector & Fire Certificate
Every municipality requires a safety inspection before closing. Costs vary by town, generally $50–$150, and some towns charge extra for expedited appointments.
5. Final Water & Sewer Readings
If your home uses municipal utilities, the town will conduct a final reading. Sellers pay for usage up to the closing date.
6. Home Warranty (Optional)
Some sellers offer a home warranty to make their listing more appealing. This is optional but common in competitive markets. Cost: $450–$700.
7. Repairs or Credits Negotiated After Inspection
If the buyer requests repairs—or a credit in lieu of repairs—this becomes part of your final cost. In NJ, credits are more common than doing the physical repairs.
Buyer’s Typical Costs (New Jersey)
Buyers handle most of the loan-related and due diligence expenses:
1. Loan Origination & Underwriting Fees
These are charged by the lender and can range from $1,000–$2,500 depending on the loan type.
2. Appraisal Fee
Required by the lender to confirm the home’s value. Typically $500–$700.
3. Credit Report Fee
Usually $30–$50, charged by the lender.
4. Title Insurance & Title Search Fees
These protect the buyer and lender from issues involving property history or ownership. Costs depend on the purchase price and typically range from $2,000–$3,500+.
5. Home Inspections
Includes general inspection plus termite, radon, or chimney inspections. Most buyers spend $500–$1,000 total depending on services.
6. Prepaid Taxes & Insurance
Lenders require buyers to prepay at least several months of property taxes and the first year of homeowners insurance upfront.
7. Escrow/Settlement Fees
Charged by the title company or attorney for coordinating closing. Often $750–$1,200.
Local Tip (Northern NJ Insight)
In competitive markets like Bergen, Essex, and Morris counties, it’s common for buyers to request closing cost credits—especially if they’re stretching their budget to afford a higher purchase price.
Credits are usually:
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Requested after inspection
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Used to offset buyer expenses
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Negotiated as part of the final agreement
This doesn’t mean sellers always agree, but it's common enough that sellers should be aware of it.
Pro Tip for Sellers
Ask your attorney or agent for a net sheet early in the process.
This will estimate:
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All seller closing costs
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Your mortgage payoff (if any)
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Projected net proceeds
Having this early helps you price your home confidently and avoid surprises at closing.
