Closing Costs When Selling a House in New Jersey: What Sellers Pay
A Complete Breakdown of NJ Home Selling Fees and How to Minimize Them
Selling your house in New Jersey? Before you celebrate your sale price, it's important to understand the closing costs that will reduce your net proceeds. This guide breaks down what Monmouth County and NJ sellers typically pay.
What Are Closing Costs?
Closing costs are the fees and expenses paid when a real estate transaction is finalized. For sellers, these costs typically range from 8-10% of the sale price in New Jersey—significantly higher than many other states.
Breakdown of New Jersey Seller Closing Costs
Real Estate Agent Commissions: 5-6%
The largest cost for most sellers. This is typically split between the listing agent and buyer's agent. On a $400,000 home, that's $20,000-$24,000.
Realty Transfer Fee: ~1%
New Jersey charges a realty transfer fee based on sale price:
- Up to $150,000: $2 per $500
- $150,000-$200,000: $3.35 per $500
- Over $200,000: $4.25 per $500
- Over $1 million: Additional 1% "mansion tax"
Title Insurance: $500-$2,000
Sellers typically pay for the owner's title insurance policy protecting the buyer.
Attorney Fees: $500-$1,500
New Jersey requires attorney representation for real estate transactions.
Pro-Rated Property Taxes
You'll pay your share of property taxes up through the closing date.
Outstanding Liens or HOA Fees
Any existing liens, HOA balances, or assessments must be paid at closing.
Repair Credits or Concessions
Negotiated credits to buyers for repairs or closing cost assistance.
Sample Closing Cost Calculation
| Item | Amount |
|---|---|
| Sale Price | $400,000 |
| Agent Commission (5.5%) | -$22,000 |
| Realty Transfer Fee | -$3,380 |
| Title Insurance | -$1,200 |
| Attorney Fees | -$1,000 |
| Prorated Taxes | -$2,000 |
| Total Costs | $29,580 |
| Net to Seller | $370,420 |
How to Reduce Your Closing Costs
Negotiate Agent Commission
Some agents will accept 4-5% instead of 6%, especially for higher-priced homes.
Sell Directly to a Cash Buyer
When you sell to Doorifi, there are no agent commissions. On a $400,000 home, that's $22,000+ you keep.
Minimize Repair Concessions
Selling as-is eliminates negotiated repair credits.
The Doorifi Advantage
When you sell to Doorifi:
- No agent commissions: Save 5-6%
- Reduced closing costs: We often cover typical seller costs
- No repair credits: We buy as-is
Contact Doorifi to see how much more you could net from your Monmouth County home sale.