Guidance

A Guide to Closing Costs for Your Home

A Guide to Closing Costs for Your Home
Selling Your Home

Estimated Closing Costs for Sellers

When selling a home, there are several expenses you should plan for (in addition to your real estate firm’s marketing fee and moving expenses). The list below is a framework for the type and approximate amount of expense you should plan for. Please remember to consult your real estate attorney and mortgage lender to ensure the accuracy and completeness of these expenses.

Expense

Approximate Cost

Legal Fees

$1,100 - $1,500

Water Inspection

$450 - $700

Repairs Related to the Home Inspection

Dependent on the condition of the home

Township Certificate of Occupancy

$50 - $100

New Jersey Real Estate Transfer Tax

Approximately 1% of the total sale price (or less than 0.5% if age 62 or older) or a disabled veteran.

Purchasing Your Home

Estimated Closing Costs for Purchasers

When purchasing a home, you should plan to spend more than the actual purchase price of the home. The additional expenses you will incur are typically referred to as “Closing Costs”. These expenses are typically paid at closing, but some expenses may be rolled into the mortgage you are obtaining. The list below is a framework for the type and approximate amount of expense you should plan for. Please remember to consult your real estate attorney and mortgage lender to ensure the accuracy and completeness of these expenses.

Expense Category

Approximate Cost

Legal Fees

$1,800 - $3,500

Home Inspection (including radon, pest, and structure)

$500 - $1,500

Septic Inspection (if necessary)

$500 - $1500

Tank Sweep

$300 - $500

Title Search

$300 - $800

Title Insurance

0.35% - 0.55% of purchase price

Survey

$1,000

Recording of Deed

$100

Recording of Mortgage

$300 - $400

Oil Adjustment (if necessary)

Adjustment for oil left in the tank

Property / Sewer Tax Adjustment

Adjustment for property or sewer taxes prepaid by seller

New Jersey Real Estate Transfer Tax

1% of the total purchase price for homes selling for $1,000,000 or more (Buyer does not pay any Transfer Tax for homes selling below $1,000,000)

Mortgage Application

$300 - $700

Mortgage Appraisal

$300 - $700

Private Mortgage Insurance (PMI)

Applies if down payment is less than 20% (ask lender for details)

Property Tax Escrow (paid to Lender)

3 – 6 months of real estate taxes (amount to be defined by Lender)

Per diem Mortgage Interest Adjustment

Represents interest from the day of closing to the end of the month