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Are you selling your New Jersey property? Let me share with you some typical types of the closing costs for the average seller. The most important number you need to know is the bottom-line figure that you will be walking away with after closing.
Mortgage Payoff
If you have a mortgage, you’re going to have a mortgage payoff. This might be the largest of your closing costs. This means the proceeds of your sale will pay off the mortgage that you currently have on your property.
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!
Attorney Fee
Is highly recommended to hire the local real estate attorney to represent you.
Settlement Fee
This will the charge from the title company, which is handling the closing.
Deed Preparation
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.
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.
Real Estate Commission
The real estate agent commission or brokerage fee.
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.
Certificate of Occupancy/ Smoke Detector Inspection
The requirements depend upon the city that you are selling in.
Source: “10 Types of Seller Closing Costs in New Jersey.” Adam D’Annunzio Shore Real Estate Search, 17 Nov. 2021, https://shorerealestatenj.com/10-types-of-seller-closing-costs-in-new-jersey/.
