Closing Costs
Closing costs are the fees and expenses associated with finalizing a real estate transaction. They are paid at the end of the process when the title of the property is transferred from the seller to the buyer. These costs cover various administrative and legal services required to complete the sale. Both buyers and sellers may have to pay certain closing costs, which are usually detailed in the closing documents provided before the final transaction. Understanding these costs is crucial for budgeting and avoiding surprises at the closing table. Please see below closing costs to be expected from both the buyers and sellers side. Keep in mind every real estate transaction can differ.
Typical Buyer Closing Costs
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Typical Loan-To-Value (LTV) ratios range from 70%-80%.
Example: $1,000,000 purchase price
80% LTV
Loan amount: $800,000
Down payment: $200,000
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Mortgage & Appraisal fees may include a credit report, document preparation fees, mortgage discount points, the appraisal itself, and possibly a few more minor fees. In total, expect costs to be around $1,500.
*All numbers given are estimates. It is recommended to speak with a mortgage professional about specifics.
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Real Estate attorney’s review and protect your rights throughout the sale/purchase process. For many, buying a home is the largest investment one will have to make so it is highly recommended to hire a Real Estate attorney to ensure a smooth, valid, and legal transaction process. Rates can vary but typical cost falls between $1,000-$2,000.
*all numbers given are estimates
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Home Inspections are extremely important. They can help find hidden defects and issues with the property that are crucial to your purchase. As an estimation, typical home inspections cost between $500-$1,500 depending on size, state of the property, and time spent.
*all numbers given are estimates
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Many municipalities require the buyer to get a new survey and flood elevation certificate in order to obtain a resale Certificate of Occupancy (CO). Often, the buyer will pay for the survey and elevation certificate, while the seller arranges and pays for the Certificate of Occupancy. The elevation certificate is also crucial in obtaining Flood Insurance. Doing this can cost on average between $1,000-$2,000.
*all numbers given are estimates
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Each town has a different fee amount imposed for the sale of a property. The fee(s) typically will be for the filing of the deed, transfer of water/sewer, and other similar fees. These fees typically can total around $1,000.
*all numbers given are estimates
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The mortgage lender usually requires the buyer to establish and maintain a reserve so that the borrower has sufficient funds to pay general taxes and renew insurance when ownership is transferred. Usually equal to one month’s portion of general tax and insurance premium.
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Title insurance is used to insure against certain undiscovered defects that may affect the properties title. Most policies typically cover defects such as forged documents, documents of incompetent grantors, incorrect marital statements, and improperly delivered deeds. Costs can vary. Unlike other insurance policies, title insurance is a one-time fee. Speak with a title insurance representative to inquire about costs and specifics.
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Typical credits to the seller would be utility prorations and real estate tax reimbursements. Typically ranges from $1,000-$1,500.
*all numbers given are estimates
Typical Seller Closing Costs
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Both sides of a transaction should hire a Real Estate Attorney to protect their interests in a contract agreement. It is HIGHLY recommended to always use a Real Estate Attorney. Expect costs to be between $1,000-$2,000
*all numbers given are estimates
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The seller is expected to pay the commission upon the sale to both agents’. Commission typically is 5-6% of sales price.
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The Realty Transfer Fee is imposed upon the recording of deeds evidencing transfers of title to real property in the State of New Jersey. The Realty Transfer Fee is calculated based on the amount of consideration recited in the deed or, in certain instances, the assessed valuation of the property conveyed divided by the Director’s Ratio. Payment of the Fee is a prerequisite for recording the deed. The R.T.F. is usually collected at the real estate closing by the legal representatives or title insurance agents responsible for recording the deed at the county registry offices.
Click here for the link to the New Jersey Division of Taxation with Transfer Tax Rates.
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This tax applies if you are a non-New Jersey resident and you sell a home in New Jersey:
2% of sales price
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A Certificate of Occupancy is required in New Jersey during the change of ownership. During this the town gets the opportunity to inspect the property for safety and code violations.
(Issued from municipality, may also require certificate for Carbon monoxide, fire extinguisher, smoke detector, and in some cases the instillation of a curb): $75.00 for single family, $150 for multifamily, and $25.00 for any re-inspections, $150.00-$250.00 for the installation of any smoke detectors, CO2 detectors, fire extinguishers, etc that may be needed.
In some cases the buyer may be held responsible for the Certificate of Occupancy. This often happens with “as is” properties for sale.
*Long Beach Township prices, other municipalities may vary
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Miscellaneous expenses could include filing a required deed restriction, fixing an item for the Certificate of Occupancy, and more.
Budget for approximately $500
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Some townships (Surf City & Long Beach Twp) require the instillation of curbs in front of homes that do not already have them. Cost can vary due to the amount of feet of concrete needed and material costs. A performance guarantee may be posted with the Borough for curbs required at the time of exchange of ownership evidencing that all required curbs will be constructed within 90 days of the date of exchange. The Borough shall establish the amount of the performance guarantee which shall be a minimum of twice the cost to actually install said curb based on prevailing rates.
Approximate cost: $1,000-$3,000
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As of July 10, 2025, New Jersey has shifted the mansion tax (officially called the Supplemental Realty Transfer Fee) from the buyer to the seller for all real estate transactions of $1 million or more.
This fee is paid in addition to the standard Realty Transfer Fee (RTF), which sellers already cover.
The new mansion tax is tiered based on sale price:
$1,000,000 to $1,999,999 = 1%
$2,000,000 to $2,499,999 = 2%
$2,500,000 to $2,999,999 = 2.5%
$3,000,000 to $3,499,999 = 3%
$3,500,000 and above = 3.5%
This percentage applies to the full recorded sale price. It cannot be reduced by including furniture, personal property, or through concessions.
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