Closing Costs Overview
Closing costs vary significantly between New Jersey and New York. Understanding these differences is crucial whether you're buying or selling.
For Buyers
| Cost Type | New Jersey | New York |
|---|---|---|
| Typical Range | 2-3% of purchase price | 3-6% of purchase price |
| Mortgage Recording Tax | None | 1.8-2.55% of loan amount |
| Mansion Tax | None | 1-3.9% on purchases $1M+ |
| Title Insurance | ~0.5% of purchase price | ~0.5% of purchase price |
| Attorney Fees | $1,000-$2,000 | $2,000-$4,000 |
For Sellers
| Cost Type | New Jersey | New York |
|---|---|---|
| Transfer Tax | $2-$6.85 per $500 | 0.4% state + 1-1.425% NYC |
| Commission | 5-6% | 5-6% |
| Attorney Fees | $1,000-$1,500 | $2,000-$3,000 |
Key Takeaways
- New York is more expensive for buyers due to mortgage recording tax and mansion tax
- NYC transactions have additional transfer taxes
- Attorney fees tend to be higher in New York
- Title insurance rates are similar in both states
Money-Saving Tips
- Shop around for title insurance and compare quotes
- Ask the seller for closing cost credits
- In NY, consider assuming an existing mortgage to avoid mortgage recording tax
- Some closing costs are negotiable between buyer and seller