Cost to Sell a House in New Jersey: Seller Closing Costs Revealed

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  Written by Greg Isaacson

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  Edited by Steve Nicastro

Cost to sell in New Jersey | Realtor commission | How to save | Closing cost calculator | FAQs

The average cost to sell a house in New Jersey is 6.24% of a home’s final sale price, which includes realtor commission (5.13% of the sale price) and seller closing costs (1.1%).

That means it costs New Jersey home sellers an average of $27,555 to sell a home priced at $440,368 (the average New Jersey home price). 

Keep in mind that realtor commission and closing cost figures vary widely by market.

You can also save big by using an agent-matching service like Clever Real Estate to sell your home. Clever has negotiated a reduced listing commission of 1.5% – far lower than the average New Jersey rate of 2.63%.

Here’s a complete breakdown of the costs of selling a house in New Jersey, including tips on how to save on your sale, and a New Jersey seller closing cost calculator to estimate your expenses.

Cost to sell a house in New Jersey 

*Costs assume a sale price of $440,368. Numbers are rounded off and may not be 100% precise.

It’s more expensive to sell a house in New Jersey compared to other states. 

The table above shows that it costs 6.24% when factoring in realtor commissions and closing costs. That’s a bit lower than the national average of 6.53%.

Given New Jersey’s relatively high home values, it’s also more expensive to sell on a total cost basis compared to the national average.

Overall home prices in New Jersey are significantly higher than in other states in the region, but the cost to sell as a percentage of the home price tends to be lower.

As a result, New Jersey’s average cost to sell in dollars is the highest among this group of states, but only slightly higher than Connecticut and Delaware.

Of course, New Jersey home values vary quite a bit across the state, so your total home sale costs will also vary. As of May, median home prices ranged from $227,500 in Salem County to $620,000 in Bergen County, according to New Jersey Realtors.

Here’s an example of your potential costs at various price points, including realtor fees and seller closing costs.

Factors that may impact your New Jersey home sale costs include:

Typical real estate agent commission in your area

While the state-wide average rate is 5.13%, rates may be higher or lower depending on what’s normal in your area. 

Your success in negotiating rates

Realtor fees aren’t fixed — they are completely negotiable. You may be able to negotiate a rate lower than what’s typical in your area. 

How you find a realtor

You can potentially save thousands in realtor fees by using an agent-matching service like Clever Real Estate to find a realtor. Clever has pre-negotiated a 1.5% listing agent fee with agents in its network. 

If you need to pay optional costs

The estimated total cost to sell of 6.24% in New Jersey does not include costs like home staging, deep cleaning, and pre-listing repairs, which could add thousands more to your home sale costs. 

Your negotiated contract

Closing costs are split between the buyer and seller in New Jersey. Sellers typically pay all commissions, realty transfer fees, recording fees, and prorated property taxes.

Buyers take on most of the other expenses including inspection costs, appraisal costs, due diligence, owner’s title insurance, and buyer closing costs for their mortgage.

Home sellers may also be on the hook for homeowners association (HOA) fees, attorney fees, property appraisal fees, and a mortgage payoff.

Here’s a deeper look at your expected home sale costs.

1. New Jersey realtor commission (5.13%)

Using a realtor costs New Jersey home sellers an average of 5.13% of the home’s sale price, paid out at closing. That fee covers both the listing agent and the buyer’s agent commission.

Your actual cost depends on your home’s value, as it costs much less to sell a home in Middlesex County compared to Bergen county, for example. Learn what your home is worth to determine your estimated realtor fees.

*Median sale prices as of May 2022 according to New Jersey Realtors. Commission costs assume an average realtor commission of 5.13%.

Since commission is the single largest home-selling expense in New Jersey, it’s also your best cost-saving opportunity. 

How to save on New Jersey realtor fees

Here are some tips on how to save money on your home sale. 

Use a discount broker

A discount real estate broker is a company that offers sellers a reduced commission fee. The broker’s listing agents charge less than the average rate, such as a 1% listing fee vs. the typical 2.5%-3% rate. 

Selling at a higher price point leads to even bigger commission savings using a discount broker vs. finding a realtor through traditional sources, like through a personal referral. 

For example, Clever offers listing fees of just 1.5%, compared to the average New Jersey listing commission rate of 2.63%. That could save you more than $10,000 on a $400,000 home sale.

Agents from these firms still provide all of the services you’d expect to receive from a traditional realtor, too. The service is free to try with no obligation, so it’s worth starting out here. 

» MORE: The Best Discount Brokers for Every Budget

List your home without a realtor

You can avoid paying New Jersey listing commission entirely by selling without a realtor. That’d save you 2.63% off of your home sale.

However, the typical FSBO home sells for about $58,000 less than agent-listed homes, according to the National Association of Realtors. You’ll also be on the hook for all of the tasks normally handled by a real estate professional.

Negotiate a lower rate

There’s no law setting a fixed realtor fee in the state or any part of the country, which means you can try to negotiate a lower commission rate with New Jersey realtors. 

Negotiating commission is more likely to work on a high-value property, since the agent will still earn a substantial commission on the home sale, despite the lower rate.

» LEARN: How to choose the right listing agent 

2. Seller closing costs in New Jersey (1.1%)

Seller closing costs typically add another cost of 1.1% or more to the home’s final sale price, according to our data. (Closing costs do not include realtor commission.)

Based on the average New Jersey home value of $440,368, the typical home sellers pays $4,964 in closing costs.

Closing costs for sellers in New Jersey typically include attorney fees, realty transfer fees, recording fees, and prorated property taxes.

Other fees for sellers could include Homeowners Association (HOA) fees, property appraisal fees, and mortgage payoff and/or prepayment penalties.

Buyers generally handle the survey fee, appraisal fee, title search and insurance costs, and their own attorneys’ fees. 

Attorney fees

New Jersey home sellers are not required to use an attorney to handle the closing, but many sellers choose to do so.

Attorneys are responsible for reviewing all of your contracts and legal documents and protecting you from potential issues that may arise during your sale.

Real estate agent Matthew Tully, a real estate agent with RE/MAX Central, notes that the northern half of New Jersey tends to use attorneys during home sales, while in southern New Jersey, title companies generally handle the entire process.

Both buyers and sellers have three days to seek an attorney review of the purchase agreement before the terms become legally binding, according to law firm Schepisi & McLaughlin, P.A.

Real estate attorneys charge an average of $347 per hour in New Jersey, legal technology firm Clio reports.

» LEARN: Do I Need a Lawyer to Sell My House?

Realty transfer fees

The New Jersey government charges a realty transfer fee on every home sale. This fee is imposed on sellers and amounts to 1% for all sales less than $1 million.

For instance, a home that sells for $400,000 would face a realty transfer fee of $4,000.

Although sellers pay this fee, buyers may need to pay an additional fee of 1% on home sales over $1 million, according to the New Jersey state government.

The realty transfer fee equates to a total average cost of for a home sale in New Jersey, our data shows. This is more than double the national average cost of .

Recording fees

New Jersey charges average recording fees of $90, compared to the national average of $0.

Recording fees are imposed by the county clerk or register in each of New Jersey’s 21 counties and include $40 for the first page of the deed and $10 for each subsequent page, $10 for marginal notations, and a $3 surcharge for each document in some counties, according to Passaic County Title Insurance.

While buyers typically pay for the recording fee, there is also a fee for recording the release of any open mortgages on the home, which the seller is responsible for paying.

Prorated property taxes

New Jersey home sellers are required to pay property taxes on the days they’ve owned their home in the calendar year. Taxes are prorated and split between the seller and buyer. 

The tax is due at closing. Actual costs depend on your annual taxes, and how many days you live in your home up until the closing date. 

Speak with your agent or attorney for more details on what you might owe in prorated taxes. 

3. Other potential costs

Home preparation costs 

The cost of preparing your home for sale could add thousands more to your total upfront costs. 

Home staging costs between $745 to $2,659 on average in the U.S., according to HomeAdvisor. But actual costs vary widely depending on location, the size of the home, and the number of rooms being furnished.

If your home needs to be deep cleaned by a professional, expect to spend at least $300 for complete cleaning. 

Finally, pre-listing home repairs and improvements could add hundreds, if not thousands more to your budget, depending on how much work your home needs. 

Homeowners association dues

You may owe homeowners association (HOA) dues if your home is located in an HOA community. Sellers are typically responsible for covering a prorated amount of their annual membership dues at closing.

If the HOA charges fees to transfer homeownership records to the buyer at closing, the seller usually pays them. Costs vary between communities, but they commonly range from $150-500. Check with your agent, attorney, or HOA board for more information on what you might owe.

Buyer’s closing costs (seller concessions)

In addition to the costs outlined above, buyers may request that sellers cover some of their closing costs. Seller concessions include anything that the seller gives the buyer to close the deal.

Seller concessions often come in the form of seller credits towards the buyer’s closing costs — 2-3% of the home’s sale price is common — or home warranty policies. However, they can also include compromises that don’t hold monetary value, such as an agreement to close on a date that’s preferable to the buyer.

Title search fee

The attorneys handling the closing may charge this fee to examine the public records and transfer title ownership to the buyer. This is a big expense in New Jersey. Title costs often run from $1,400 to $2,000 or more, depending on the complexity of any issues with the property, according to Gina Cristiano, a realtor with Shore Realty Exchange.

In a normal market, buyers and sellers would split this cost, but in New Jersey’s hot seller’s market, the buyer is currently responsible for covering it.

Owner’s title insurance

Title insurance protects the owner against any legal claims made against their home or possible mistakes on their deed. It also usually covers the cost of legal fees when defending a claim.

Buyers pay for the owner’s title insurance policy in New Jersey, but it’s not uncommon for both parties to negotiate who pays. Owner’s title insurance is a one-time fee, usually due at the time of closing.

Home warranty

The annual premium for a home warranty in New Jersey averages $775 for a single-family home, according to Review Home Warranties. Premiums for townhomes and condos are lower at about $533 and $645, while premiums for multi-family homes average $1,163.

Sellers may offer to cover this cost as a buyer incentive in New Jersey.

Termite inspection fee

Termites are a significant problem in New Jersey, with some pest control companies estimating that one in five homes are at risk of damage from the Eastern Subterranean Termite.

A termite inspection and Wood Destroying Insect Report (WDIR) are required for home purchases involving a mortgage or VA loan in the state. The average cost of a termite inspection is around $250, according to Dial Environmental Services, a pest control company based in East Hanover.

Who pays for the inspection varies. The buyer is often responsible for covering the cost, but the buyer may be able to negotiate that with the seller.

Franklinville-based ROSS Environmental Solutions notes that the lender sometimes covers the cost if they are requesting the termite inspection.

Capital gains tax

The IRS offers a tax break on capital gains from the sale of your primary residence, as long as you meet certain requirements:

• Single homeowners can deduct up to $250,000 of gains from the sale of their property;
• Married couples can deduct up to $500,000 of gains. 
• You must have occupied the property for at least two of the past five years. 
• You can also deduct certain repairs and improvements from your home’s cost basis. 

» LEARN: How to avoid capital gains on a home sale

New Jersey seller closing costs calculator

For more accurate numbers, we recommend finding a local realtor to provide you with a free seller’s net sheet: a personalized document that estimates how much you may earn in your home sale.

Seller closing costs in New Jersey: FAQs

Recommended reading

The True Costs of Selling a Home Revealed. What does it really cost to sell a house in the U.S.? We explore all of the common expenses in a home sale, and how you can save thousands.

Sell a House Fast in New Jersey: Expert Tips. Selling your home in the Garden State doesn’t have to be overwhelming. Experts weigh in on the entire process from choosing an agent through closing.

How to Find a Realtor. Find out how you can connect with a great real estate agent. We help you zero in on the best approach, whether you’re selling or buying.

Seller Net Sheet Guide. Learn how a net sheet can help you estimate your potential home sale proceeds, and how to get one for free.

Negotiating Realtor Commission. Knocking your real estate commission down just one percentage point could save you a ton of money on your home sale.