Wondering what your real estate closing costs will be when you sell your home?
Yes, you will have to pay off any mortgage(s) you have on the home. Yes, there will be a real estate brokerage fee if you use the services of a Real Estate Broker in the marketing and sale of the home. Yes, in all likelihood, you will use an Attorney and there will be an Attorney Fee for services rendered throughout the real estate transaction.
Those fees will be paid from the sale proceeds at closing in addition to some other expenses such as real estate taxes and mortgage interest prorated as of the closing date, mortgage cancellation fees and perhaps some other expenses or fees related to the real estate transaction or closing of title.
Oh yes, there is one other expense for home sellers of New Jersey properties, and that is the New Jersey Real Estate Transfer Fee. This fee is not an “exit tax”, but is a fee charged to all sellers of properties in New Jersey, whether the seller currently resides in New Jersey or not. It is collected at closing of title and is paid to the New Jersey Treasury Department. The proceeds from the Realty Transfer Fee provide support for the Public Health Priority Fund, shore protective initiatives, housing programs, extraordinary special education and municipal aid and direct aid to New Jersey Counties.
So what does the New Jersey Realty Fee cost a home seller in New Jersey? It is not a nominal fee! The fee is based on sale price. The higher the sale price, the larger the transfer fee. There are two home seller fee schedules; one for Senior Citizens(62 years of age and older) and one for all others.
For your review, I am providing links to worksheets to calculate the Transfer Fee for New Jersey properties.
There is a simpler way to calculate the amount of the Transfer Fee, compliments of the New Jersey Asoociation of REALTORS, and Get the Real Story! Here is the link to the an online calculating widget to calculate the Transfer Fee by simply typing in a sale price(not available for Senior Citizen Transfer Fees).
Get the REAL Story® is a public education campaign brought to you by the New Jersey Association of REALTORS® (NJAR®). The campaign encourages consumers to take a closer look at local market conditions, state or regional economic factors and their own personal circumstances when making a decision about buying or selling property in today’s market.
Central to the campaign are stories from actual buyers and sellers who want to share their positive experiences for others to learn from. The campaign connects those stories directly to the people who are considering buying or selling in New Jersey, so they can educate themselves from firsthand sources about the opportunities and challenges of the local market.
In addition, the campaign focuses on the diversity of the marketplaces throughout New Jersey. Each neighborhood has its own distinctive character that makes it different from nearby communities. The campaign also highlights the factors that make New Jersey a good place to live, work and raise a family, ones that differentiate the Garden State from other real estate markets.
Finally, the campaign encourages consumers to consult with an expert in determining their real estate opportunities. REALTORS® know real estate. Now more than ever, buyers and sellers need strong, dependable and professional advice. REALTORS® are trusted, respected liaisons to a wealth of resources and information to help buyers and sellers understand local housing market conditions.