Overview of Seller Closing Costs

In New Jersey and New York, sellers typically pay 8-10% of the sale price in closing costs. Here's what to expect.

Real Estate Commission

This is typically the largest closing cost for sellers:

  • Traditional commission: 5-6% of sale price
  • Split between listing agent and buyer's agent
  • Negotiable in some cases

Transfer Taxes

New Jersey

  • Realty Transfer Fee: $2-$6.85 per $500 of consideration (sliding scale)
  • Additional 1% fee on sales over $1 million

New York

  • NYS Transfer Tax: 0.4% (0.65% for homes over $3 million)
  • NYC Transfer Tax: 1% (up to $500K) or 1.425% (over $500K)
  • Mansion Tax (paid by buyer, but sometimes negotiated)

Other Common Costs

  • Attorney fees: $1,000-$2,500
  • Title insurance (owner's policy): $1,000-$3,000
  • Mortgage payoff: Remaining balance plus any prepayment penalties
  • Property taxes: Prorated amount through closing date
  • HOA fees: Prorated if applicable
  • Repairs: Any credits or repairs negotiated after inspection

Sample Cost Breakdown

For a $500,000 home sale in NJ:

  • Commission (5%): $25,000
  • Transfer taxes: ~$3,000
  • Attorney: $1,500
  • Title insurance: $2,000
  • Recording fees: $200
  • Miscellaneous: $500
  • Total: ~$32,200 (6.4%)