NJ Seller's Guide to Closing Costs: What to Expect

Agent Commission

The largest single cost for most sellers is the real estate agent commission — historically 5-6% of the sale price, split between the listing agent and buyer's agent. On a $600,000 NJ home, that is $30,000-$36,000.

Commission is negotiable and has been subject to increased scrutiny following the 2024 NAR settlement. However, well-qualified listing agents who consistently sell homes above asking price earn their commission through better net proceeds, not just service.

New Jersey Transfer Tax

New Jersey imposes a realty transfer fee on the seller that ranges from $2.00 per $500 of consideration for homes under $150,000 to higher rates for more expensive properties. For a $600,000 sale, expect to pay approximately $2,100-$2,400.

Properties over $1 million trigger a 1% mansion tax — paid by the buyer, not the seller, but worth factoring into pricing strategy.

Attorney Fees

New Jersey requires attorney representation at closing for both buyer and seller. Seller's attorney fees typically range from $1,200 to $2,500 depending on complexity. Do not hire the cheapest attorney you can find — a competent real estate attorney catches contract issues that can cost you far more than the fee difference.

Mortgage Payoff and Lien Resolution

Your current mortgage balance will be paid off from closing proceeds. This is not technically a cost, but it reduces your net proceeds. Any outstanding liens — contractor liens, tax liens, HOA arrears — must also be resolved at closing.

Request a payoff statement from your lender approximately two weeks before closing. The daily per-diem interest accrual makes the payoff amount change daily.

Your Net Proceeds Estimate

A good listing agent provides a detailed seller's net sheet before you sign a listing agreement. This document calculates your estimated proceeds after all costs. Do not sign with an agent who cannot produce this within 24 hours of your meeting.

As a rough rule, budget 7-9% of your sale price for total closing costs. On a $600,000 sale, expect $42,000-$54,000 in total costs, netting you approximately $546,000-$558,000 before your mortgage payoff.