Seven Closing Costs You Need to Know About When Listing a Home in the State of New Jersey
by: Jeff Quintin, on June 18, 2013 - estates new jersey new jersey real estate new jersey real estates nj real estate nj real estates real estate and nj real estate in new jersey real estate in nj real estate new jersey real estate nj
Everyone knows that it costs money to sell a home and it varies from state to state. In the State of New Jersey there are seven costs associated with closing the sale of a property that sellers are required to pay. As you make the move to list your home on the market this season, it’s a good idea to consider those costs ahead of time.
Real Estate Commission
Real estate commission is a negotiable amount but in most cases, depending on the broker, agent and circumstances, it varies from about 6% to 7%. The commission is payable to both the listing broker as well as the selling broker (the broker representing the buyer).
Real Estate Transfer Tax
The real estate transfer tax is only payable by the seller and it varies from state to state. Some states, like Pennsylvania, split this tax evenly on both the buyer and seller’s side. In New Jersey the seller is required to pay the tax, amounting to about 8 tenths of a percent, based on sales price.
Whether drawn up by an attorney or title company handling the transaction, the cost of a new deed is borne by the seller. This fee is typically anywhere from around $75 to $100.
Settlement Room Fee
About $300, the settlement room fee is normally split between buyer and seller.
Payoff Plus Overnight Fee
If there is an existing mortgage with a payoff amount due, the cost of paying off the mortgage plus release and overnight fees of $35-$50 and $25 respectively are due by the seller. The payoff is sent via overnight mail to stop the daily per diem of interest.
NJ Non Residents Tax
For sellers that have a primary residence outside the state of New Jersey there is the NJ Non Residents Tax payable at closing. Two percent of the gross sale price is paid to the Division of Taxation of NJ to protect the state in case there is a capital gain from the sale. If the sale is at a loss, the state will refund the money after close or exempt the tax prior to closing.
Certificate of Occupancy or Smoke Detector/Carbon Monoxide Inspection
The municipality will do a walk-through and inspections to confirm and approve a Certificate of Occupancy as well conduct an inspection of smoke detectors and carbon monoxide monitors. The cost of this inspection is about $75 to $100.
Barring real estate commissions, most closing costs for sellers amount to about 1% of the sale price for New Jersey sellers. If you would like a customized estimated cost sheet for your property, contact our office.