What it costs to sell your own home in New Jersey
December 22, 2013 | Gregory Maglione
The first tip for selling your home is to figure out what the expenses are and if you can afford to sell your home.
What are the costs involved in selling your own home in New Jersey?
- Loans/liens
- NJ Real Estate Transfer Fee
- Attorneys Fee
- Real Estate Brokers Commissions
- Well testing
Loans/liens
First step in selling your home, you need to figure out what the payoff is on your mortgage. Since this is most people’s biggest lien on their home it’s a good place to start. If the mortgage payoff is more than your home is worth and you don’t have the money to cover the shortfall, you cannot sell your home through the normal process and you might have to look for other options (Short Sale, Bankruptcy). Just call up the bank and/or banks and ask what the payoff is on your loan/loans. If you have any other liens on your home or are not sure just go down to your county clerk’s office and you can check. If so, you can contact those creditors and ask for those payoff figures.
New Jersey real estate transfer fee
This is a fee (TAX!!!) that New Jersey charges when you sell or transfer real estate. If you are a: senior citizen aged 62 or older; a blind person; a disabled person; or on living in a property that is designated low or moderate income housing. You are entitled to a partial exemption. If you are not then you have no exemptions.
- If your home sells for 350,000 or less Realty Transfer Fee Schedule
- If your home sells for more than 350,000 Realty Transfer Fee Schedule
Attorney Fee
In the state of New Jersey you do not need an attorney but we highly recommend it. When you make a large purchase like a home, it is important to have an attorney to review the contract, make changes and advocate for you. The cost should be between $800 and $1,000.
Real estate broker commissions
Marketing your home is the best way to get you the most money for your home. Pepsi, GM, Microsoft. Spend millions on advertising so you know who they are and what products they sell. If they did not, you would probably would not even know they were in business or what they sold. The same goes for real estate. If more people see your home you are more likely to receive more offers and a higher sale price.
For marketing your home the average commission is between 5% & 6% of the sale price.
Well testing
If you have well supplying the water to your house, the state of New Jersey mandates you have to test it to make sure it is drinkable. This test is usually paid for by the seller. The cost is around $450 to $650.
What happens if you need to sell but can’t afford all these fees? Short Sale.