While the real estate market continues to remain in the favor of sellers in NJ, sellers can and should still be informed of what it will cost for them to bring their home to the market. One of the top questions our team faces during meetings with homeowners is: What exactly will it cost me to sell my home?
Here, we break down the top costs for you, so you can consider all angles when deciding if and when to sell your home – and also be fully informed of what you have to work with toward the purchase of your next property.
1. Realtor Commission
Your listing agent’s commission, which is negotiable, typically ranges from 2% to 3% of your home’s final sale price. Most sellers also choose to offer a buyer’s agent commission if there is
another agent involved (commonly another 2% to 3%), though this is optional and negotiable.
While commission is often the largest single cost, it is also the one that has the greatest impact on your final sale price. A seasoned agent will position your property strategically, bring maximum qualified exposure and negotiate effectively to achieve the best possible result.
2. Attorney Fees
In New Jersey, real estate transactions do not require attorney representation on either the buyer or seller sides - but we highly recommend you have the legal protection. Expect to pay approximately $2,000 to $3,000 for a flat fee that covers contract review, inspection negotiations, title coordination, closing support and more.
An experienced real estate attorney will safeguard your interests, streamline communication between parties, and prevent costly errors or delays.
3. Realty Transfer Tax
New Jersey charges a Realty Transfer Fee (RTF) on every home sale in the state, typically around 1% of the sale price. The fee is paid by the seller at closing and varies based on your home’s value. There are some exemptions and reductions available for seniors, lower income households, and certain types of property transfers.
4. Mansion Tax
If your home sells for $1 million or more, New Jersey applies a Mansion Tax. This is a one-time tax paid at closing and is tiered depending upon the sale price of the home:
Current Mansion Tax Tiers Based on Final Sale Price:
$1M to $2M: 1%
$2M to $2.5M: 2%
$2.5M to $3M: 2.5%
$3M to $3.5M: 3%
Over $3.5M: 3.5%
5. Home Staging
Preparing your home for sale can make a tremendous difference in both perceived value and buyer interest. Typically, home staging costs can range from $2,000 to $7,000, depending upon how many rooms will be staged and whether or not furniture will be rented from outside sources (and for how long the home will need to be staged for).
The Country to Coast Homes Team has partnered with numerous attorneys and stagers, and we will help you secure the best possible team to sell your home for the price it truly deserves. If you’re contemplating your next chapter, we’d love to have a confidential chat – without the pressure.
-Thoughtful Real Estate-