A Breakdown of Closing Costs, Transfer Taxes, Commissions, and Holding Costs

If you are selling a house in New Jersey, it’s important to understand the total cost of selling before you close. Many sellers focus only on the sale price, but the costs of selling can add up and affect how much money you actually walk away with.

This guide explains the most common seller closing costs in New Jersey, including transfer taxes, attorney fees, title fees, commissions, repairs, and holding costs.

What Are Closing Costs for Sellers in NJ?

Typical seller closing costs in New Jersey include:

• Realty Transfer Fee
• Mansion Tax (if applicable)
• Real estate commissions
• Attorney fees
• Title company / closing fees
• Mortgage payoff
• Recording fees
• Prorated property taxes
• Municipal fees
• Certificate of Occupancy (CO) or CCO
• Repairs or credits to buyer
• Holding costs while the home is for sale

Not every seller will pay all of these costs, but most sellers will pay several of them.

Who Pays What When Selling a House in NJ?

While every real estate transaction is negotiable, certain costs in New Jersey are more commonly paid by either the seller or the buyer.

Understanding who typically pays each expense can help reduce confusion before closing.

Because every transaction is different, some costs may be negotiated differently depending on the contract, financing, and condition of the property.

Realty Transfer Fee (Seller Cost)

In most New Jersey real estate transactions, the seller pays the Realty Transfer Fee. This fee is paid at closing when the deed is recorded and is usually deducted from the seller’s proceeds.

The amount depends on the sale price of the property.

Learn more here: Realty Transfer Fee in New Jersey

Mansion Tax (Properties Over $1,000,000)

New Jersey charges an additional tax on properties that sell for more than $1,000,000. This is commonly called the Mansion Tax.

As of the updated New Jersey law, the Mansion Tax is now typically paid by the seller and is collected at closing.

New Jersey Exit Tax

Some homeowners have questions about the so-called New Jersey Exit Tax when selling their home. Despite its name, it is not a separate tax on leaving New Jersey. Instead, it generally refers to a withholding requirement that may apply to certain sellers, particularly non-residents, at the time of closing.

Whether the withholding applies depends on your residency status and other factors.

Learn more: New Jersey Exit Tax Explained

Real Estate Commissions

If you sell your house with a real estate agent, one of the largest selling costs is often the real estate commission.

Although real estate commission practices changed in 2024, many New Jersey home sellers still choose to offer compensation that results in paying both their listing agent and the buyer’s agent. However, all commissions are negotiable and are determined by the listing agreement and the terms negotiated between the buyer and seller.

In many traditional home sales, commissions are paid by the seller from the proceeds at closing. The exact amount depends on the listing agreement and any negotiated compensation offered as part of the transaction.

Attorney Fees

New Jersey is an attorney review state, so many buyers and sellers hire a real estate attorney to review the purchase contract, guide them through attorney review, and assist with the closing process.

Attorney fees in New Jersey typically range from $1,000 to $2,500, depending on the complexity of the transaction and the attorney you choose.

Learn more here: NJ Real Estate Attorney Process

Title Company and Closing Fees

The title company plays an important role in a New Jersey real estate transaction. It performs the title search, helps prepare the closing documents, coordinates the settlement, and facilitates the transfer of ownership.

Depending on the terms of the purchase agreement, certain title and closing costs may be paid by the buyer, the seller, or shared between both parties.

Common title and closing-related costs may include:

Lender’s title insurance (typically paid by the buyer if financing is used)

Title search

Settlement or closing fee

Recording fees

Wire transfer fees

Owner’s title insurance (often negotiated)

Learn more here:

• What Happens at Closing in New Jersey

Certificate of Occupancy (CO) and Inspections

Many New Jersey municipalities require a Certificate of Occupancy (CO), Continued Certificate of Occupancy (CCO), or another municipal inspection before a property can be transferred to a new owner. The specific requirements vary by municipality, so homeowners should check with their local building or housing department before closing

Depending on the municipality, the inspection may identify safety or code-related items that must be corrected before a certificate is issued. In some cases, the seller is responsible for obtaining the required certificate, while in others the responsibility may be negotiated as part of the purchase agreement.

Learn more here:

• NJ Certificate of Occupancy Requirements
• NJ Home Inspection Laws

Repairs and Buyer Credits

If you list your house on the traditional market, the buyer will often hire a home inspector after the offer is accepted. If the inspection identifies issues with the property, the buyer may ask the seller to:

• Complete certain repairs before closing
• Provide a credit toward the buyer’s closing costs or future repairs
• Reduce the purchase price
• Accept the property as-is with no changes

Whether the seller agrees to these requests is negotiable and depends on the terms of the purchase agreement and the results of the inspection.

Common repair requests include:

• Roof repairs
• Electrical issues
• Plumbing issues
• Structural issues
• Mold or water damage
• CO or safety items
• Open permits or code violations

These costs vary depending on the condition of the property.

Holding Costs While Selling

Holding costs are the ongoing expenses of owning a property while it is on the market. If your house takes several months to sell, these costs can significantly reduce the amount you ultimately receive at closing.

Holding costs may include:

• Mortgage payments
• Property taxes
• Insurance
• Utilities
• Maintenance
• HOA fees
• Lawn care / snow removal

Example Holding Costs

If a house takes 4 months to sell, that equals about $12,200 in holding costs.

Example: How Much Do You Walk Away With?

Here is a rough example for a $400,000 house:

Every situation is different, but this example shows why understanding seller costs is important.

How to Avoid Some of These Costs When Selling

If you sell your house the traditional way, you may pay:

• 5%–6% commissions
• Repairs after inspection
• Closing costs
• Holding costs while waiting for a buyer
• CO/CCO repairs
• Cleaning and junk removal

Some homeowners choose to sell their house directly to a cash buyer instead. When you sell your house for cash in New Jersey, you can often:

• Sell as-is
• No commissions
• No repairs
• No showings
• Close in 14–21 days
• Skip many holding costs

👉 Learn more about selling your house fast for cash in New Jersey

Or call 732-372-0940 to discuss your situation.

What Costs We Typically Cover in Our Direct Purchases

When we buy houses directly in New Jersey, we often cover many of the transaction-related closing costs that sellers traditionally pay in a standard sale.

Depending on the situation, we may cover:

Sellers may still remain responsible for:

• mortgage payoffs
• liens
• unpaid taxes
• HOA balances
• utility balances
• attorney fees
• other debts attached to the property

Every transaction is different, and costs may vary depending on the property, title issues, municipal requirements, and overall situation.

Final Thoughts

The cost to sell a house in New Jersey depends on:

• The sale price
• Whether you use a real estate agent
• The condition of the property
• How long it takes to sell
• Municipal requirements
• Repairs and inspections

Understanding these costs ahead of time can help you estimate your net proceeds and decide the best way to sell your house.