What Does It Cost to Sell a House in New Jersey?
Selling a house in New Jersey usually involves seven kinds of cost: brokerage compensation, attorney fees, the state realty transfer fee, your mortgage payoff, any buyer concessions, town certificates and the carrying costs while the home is on the market. Some sellers also pay the "mansion tax," which since July 10, 2025 is paid by the seller on sales over $1 million. Your total depends on your price, your mortgage and the choices you make along the way.
Here's each cost, who sets it, and how to estimate your own.
Last reviewed: October 2026.
1. Brokerage compensation (negotiable)
If you hire a listing brokerage, its fee is set by your listing agreement. There is no standard rate. New Jersey requires listing agreements for one- to four-family homes to state that you can negotiate any fee with any broker.
Since August 17, 2024, offers of compensation to a buyer's agent can't appear on the MLS. You can still choose to offer it separately, or a buyer may ask for it in their offer. Decide your approach before you list.
Sellers who sell by owner, use MLS access or take a cash offer pay different amounts, or none, for brokerage services. Compare the services you'd give up along with the savings. See selling FSBO with MLS access in New Jersey.
2. Attorney and title-related costs
Most New Jersey sellers hire a real estate attorney to review the contract during the three-business-day attorney review period and to handle closing. Fees vary by attorney and by how complex the sale is, so ask for a quote early.
On the title side, the seller's job is to deliver clear title. That can mean paying to prepare the deed, clear old liens or judgments, and resolve any title issues the buyer's title search turns up.
3. The New Jersey realty transfer fee
The seller pays the realty transfer fee when the deed is recorded. It's graduated, so the rate rises with the sale price. Partial exemptions lower it for qualifying senior citizens, blind or disabled sellers, and some low- and moderate-income housing.
The NJ Division of Taxation's own examples:
- A $325,000 sale with no exemption: $1,910.
- A $280,000 sale with the senior citizen partial exemption: $475.
Your attorney calculates the exact amount from the state's fee schedule.
4. The "mansion tax" on sales over $1 million
New Jersey changed this fee on July 10, 2025. It's now paid by the seller, not the buyer, and the rate is graduated:
| Sale price | Fee (on the entire price) |
|---|---|
| Over $1,000,000 up to $2,000,000 | 1% |
| Over $2,000,000 up to $2,500,000 | 2% |
| Over $2,500,000 up to $3,000,000 | 2.5% |
| Over $3,000,000 up to $3,500,000 | 3% |
| Over $3,500,000 | 3.5% |
The rate applies to the whole price, not just the amount above each threshold. On a $1,200,000 sale, for example, that's 1% of $1,200,000, or $12,000, on top of the regular transfer fee.
5. Mortgage payoff and liens
Your mortgage, any home equity line, and any liens or judgments are paid from your proceeds at closing. Payoff amounts include interest up to the payoff date, so they're a little higher than your last statement.
6. Nonresident sellers
If you don't live in New Jersey, you'll generally make an estimated income tax payment at closing of 2% of the sale price, unless an exemption applies. It's a prepayment against your New Jersey tax, not an extra tax. Your attorney handles the forms.
7. Concessions, certificates and carrying costs
- Buyer concessions. Credits after inspection, or help with the buyer's closing costs, reduce your net.
- Smoke, carbon monoxide and fire extinguisher certificate. Required before closing on one- and two-family homes. Some towns also have resale inspections with their own fees.
- Carrying costs. Mortgage interest, property taxes, insurance, utilities and any HOA dues for every month the home is on the market.
- Preparation and moving. Repairs, cleaning, staging and the move itself.
Property taxes are prorated to the closing date, so you may receive a credit or owe a small amount.
The biggest variable in your net is the sale price itself. Start with a free home value estimate before you run the numbers.
Example cost worksheet (illustrative only)
A hypothetical $325,000 sale by a New Jersey resident, chosen so the transfer fee matches the state's own example. Every other number is an assumption to show the math, not a quote, a CRESI fee or a typical rate.
| Cost | Amount | Basis |
|---|---|---|
| Realty transfer fee | $1,910 | NJ Division of Taxation example |
| Brokerage compensation | $16,250 | Assumed 5% for illustration; negotiable |
| Attorney fee | $1,200 | Assumed; get a quote |
| Smoke and CO certificate | Town fee | Varies by town |
| Buyer credit after inspection | $3,000 | Assumed |
| Carrying costs, 2 months | $4,000 | Assumed |
| Total before mortgage payoff | $26,360 plus certificate fee |
Swap in your own numbers: your price, your agreed fees, your attorney's quote and your actual monthly costs.
What about capital gains tax?
Many homeowners can exclude up to $250,000 of gain, or $500,000 for married couples filing jointly, on the sale of a main home if they meet the IRS ownership and use tests. Ask your tax professional how this applies to you.
Frequently asked questions
Who pays the realty transfer fee in New Jersey?
The seller. Partial exemptions are available for qualifying seniors, blind or disabled sellers and some low- and moderate-income housing.
Does the buyer or seller pay the NJ mansion tax?
Since July 10, 2025, the seller pays it, at 1% to 3.5% of the entire price on sales over $1 million.
Are real estate commissions negotiable in New Jersey?
Yes. There's no set rate, and New Jersey listing agreements must say so.
What is the 2% tax for sellers who live out of state?
Nonresident sellers generally pay an estimated income tax of 2% of the sale price at closing, unless an exemption applies. It's credited against their New Jersey income tax.
See your own numbers
The way you sell changes what you pay. To compare your estimated net with a full-service listing, MLS access or a cash offer, explore your options on Sell Your Way.
Sources
- Realty transfer fee rates and official examples: NJ Division of Taxation RTF FAQ
- Graduated percent fee, seller-paid from July 10, 2025: NJ Treasury notice; P.L. 2025, c.69; Morgan Lewis
- Nonresident estimated payment: NJ Division of Taxation
- Fee negotiability and attorney review: N.J.A.C. 11:5-6.2
- Buyer-agent compensation changes: NAR
- Smoke and CO certificate: N.J.A.C. 5:70-2.3
- Home sale gain exclusion: IRS Topic 701
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