What Does It Cost to Sell a Home in New Jersey?

When people ask me what selling will cost, they usually mean "what will I walk away with?" That's the right question. Below is every cost category I see on a typical New Jersey home sale, who usually pays it, and where the numbers come from.

Every sale is different, so treat this as a checklist, not a quote. Your attorney and title company produce the final figures.

What are the main costs of selling a house in New Jersey?

How much is the realty transfer fee?

The realty transfer fee (RTF) is New Jersey's tax on recording the deed, and the seller pays it. It isn't a flat percentage. The Division of Taxation applies a rate per $500 of price, in bands, and the bands are higher once the total price is over $350,000.

Here's what the standard rates work out to at a few common price points:

Estimates calculated from the Division of Taxation's published standard rate table. Your title company calculates the exact amount.

Reduced rates apply to qualifying senior citizens, blind or disabled persons, and certain low- and moderate-income housing. If you might qualify, tell your attorney early. Some transfers are fully exempt, such as transfers between spouses or between a parent and child.

What is the fee on sales over $1 million?

Often called the "mansion tax," this is a separate graduated fee on transfers over $1,000,000 for residential homes and some other property types. According to the Division of Taxation:

• 1% of the total price if it's over $1M and up to $2M
• 2% from $2M to $2.5M
• 2.5% from $2.5M to $3M
• 3% from $3M to $3.5M
• 3.5% over $3.5M

The state changed this fee in 2025, and the Division of Taxation lists the seller as responsible. If your home might sell for more than $1 million, ask your attorney about it before you set your price.

What does a real estate agent cost?

Real estate commissions in New Jersey are not set by law and are fully negotiable. Your listing agreement should state:

• The fee and how it's calculated
• What services are included (photography, marketing, staging advice, and so on)
• Whether and how any compensation offered to a buyer's agent is handled
• How long the agreement lasts and how it can end

Since August 2024, buyers working with an agent sign their own written agreement covering that agent's compensation. Sellers can still choose to offer compensation or concessions as part of a negotiation. I'll walk you through the options and trade-offs.

What other closing costs do New Jersey sellers pay?

Attorney fees. In North Jersey, both sides usually hire a real estate attorney. New Jersey law doesn't require it, but it's standard practice. Ask for the fee up front.

Payoffs. Your mortgage, any home equity line and any liens are paid from your proceeds. Order a payoff letter so there are no surprises — per-diem interest adds up.

Property tax adjustments. Taxes are prorated at closing. If you've prepaid a quarter, you may get money back; if you're behind, it comes out of your proceeds.

Municipal certificates. Before a one- or two-family home changes occupancy, New Jersey requires a certificate of smoke alarm, carbon monoxide alarm and portable fire extinguisher compliance. Your town sets the fee and inspection process. Some towns add their own resale requirements.

Well testing. If you have a private well, New Jersey's Private Well Testing Act requires a water test before closing. Who pays is set in the contract; sellers often do.

Repair credits. After the home inspection, buyers often ask for repairs or a credit. That's a negotiation, not a fixed cost — see my guide to inspection negotiations.

What if I don't live in New Jersey when I sell?

Nonresident sellers generally make an estimated income tax payment at closing — 2% of the sale price or 8.97% of the gain, whichever applies — using the GIT/REP forms. Residents file a form at closing certifying residency instead. Several exemptions exist. Your attorney handles the paperwork.

Will I owe tax on the profit?

Many sellers won't. If the home was your main residence and you meet the IRS ownership and use tests, you can generally exclude up to $250,000 of gain, or $500,000 for most married couples filing jointly. New Jersey follows the federal calculation. Rental property, inherited property and partial-use situations are different, so talk to a tax professional.

How do I estimate what I'll net?

When I prepare a home valuation, I include an estimated seller net sheet: your likely sale price range, minus commission, RTF, estimated attorney and certificate costs, and your payoff (from your numbers). It's an estimate, but it turns "what's my house worth" into "what will I walk away with," which is what you need for planning.

Want your own estimate? Request a free home valuation and I'll include a net sheet.