What It Costs to Sell a House in New Jersey

What it actually costs to sell a house in New Jersey

Most sellers think about one number: the commission. It’s usually the largest single line, but it isn’t the only one, and the others catch people off guard when the closing statement arrives. Here’s what comes out of your proceeds in Monmouth County, and what changed recently that a lot of sellers still don’t know about.

The Realty Transfer Fee

New Jersey charges a Realty Transfer Fee on essentially every sale, and the seller pays it. It’s calculated on a graduated scale that rises with the sale price, so a $400,000 house and a $900,000 house pay meaningfully different amounts. Partial exemptions exist — for sellers who are 62 or older, for blind or disabled sellers, and for properties that qualify as low- and moderate-income housing. New construction is treated differently as well. Your attorney or title company calculates the exact figure. Ask for it early rather than at the closing table, because it’s a real number and it affects what you walk away with.

The mansion tax changed in 2025, and sellers now pay it

This is the one that surprises people, and it matters in Monmouth County because $1 million sales are routine here. For two decades, New Jersey’s so-called mansion tax was a flat 1% on sales over $1 million, and the buyer paid it. That changed with legislation signed on June 30, 2025, effective for transactions from July 10, 2025 forward. Two things are different now: The seller pays it. The obligation shifted from buyer to seller. The rates are tiered, and they go much higher. The fee — officially the Graduated Percent Fee, or supplemental Realty Transfer Fee — now runs:

• Over $1 million up to $2 million — 1%
• Over $2 million up to $2.5 million — 2%
• Over $2.5 million up to $3 million — 2.5%
• Over $3 million up to $3.5 million — 3%
• Over $3.5 million — 3.5%

The rate applies to the entire sale price, not just the amount above the threshold. And this is in addition to the standard Realty Transfer Fee, not instead of it. The practical effect on a high-end sale is substantial. On a $2.5 million property, a seller who would previously have paid nothing toward this fee now owes roughly $50,000 — and the buyer, who used to pay $25,000, pays nothing. If you’re selling in Deal, Elberon, or the oceanfront sections of Long Branch, build this into your net proceeds before you set a price. Certain transfers are exempt, including some between spouses and parents and children, some estate distributions to heirs, and transfers recorded within 90 days of a divorce decree.

Attorney fees

New Jersey is an attorney-review state, and nearly every residential seller here uses one. Most real estate attorneys in Monmouth County handle a standard sale on a flat fee rather than hourly. Ask for the number up front, and ask what it includes — whether it covers title issues, payoff coordination, and attendance at closing, or whether those are extra.

Title and settlement costs

The buyer usually pays for the title insurance policy in New Jersey, but sellers typically carry a set of settlement-related costs: payoff processing, recording fees for discharging your mortgage, wire fees, and occasionally survey or lien resolution if something turns up. If there’s an old lien, an unreleased mortgage, or a title defect nobody knew about, resolving it falls to the seller and can take time. That’s an argument for having a title search run before you list rather than after you’re under contract.

Municipal certifications

Most Monmouth County towns require a certificate of occupancy or continuing certificate of occupancy inspection before a sale can close, along with smoke detector, carbon monoxide, and fire extinguisher certification. The fees are modest. The scheduling is not always quick, and requirements differ from town to town — Neptune’s process is not Long Branch’s. This is among the most common reasons closings get delayed, and it’s almost entirely avoidable by starting early.

Non-resident sellers

If you no longer live in New Jersey, the state requires a Gross Income Tax withholding at closing — 2% of the sale price — held against your eventual state tax liability. It’s a withholding rather than a tax, so it’s credited back when you file, but it comes out of your proceeds on closing day and people are regularly surprised by it.

Concessions and repairs

Not a fee exactly, but it belongs in the math. After inspection, buyers frequently ask for repairs or a credit. What you agree to there is a real cost, and it’s the line most within your control — both through how you prepare the house before listing and through how the negotiation is handled.

What about commission?

I discuss commission directly with sellers rather than publishing a number, because the right structure depends on the property, the price point, and what the listing actually requires. What I will say plainly: you should know the number before you sign anything, you should know exactly what it covers, and you should ask what happens if the house doesn’t sell. Any agent who is vague about those three things is telling you something.

Common questions

Who pays the mansion tax in New Jersey now?

The seller, for transactions from July 10, 2025 forward. Before that it was the buyer. The rate is also tiered now rather than a flat 1%, running from 1% to 3.5% depending on sale price.

Does the mansion tax apply if my house sells for under $1 million?

No. Below $1 million you pay the standard Realty Transfer Fee but not the Graduated Percent Fee.

Do I need an attorney to sell a house in New Jersey?

You’re not legally required to, but effectively every residential seller here uses one. New Jersey’s attorney-review period is part of the standard contract, and the practical risk of going without is not worth the savings.

When should I schedule my CO inspection?

As soon as you’re under contract, sometimes before. Requirements and lead times vary by municipality, and waiting is one of the most common causes of a delayed closing.

What will I actually net?

That depends on your sale price, your mortgage payoff, and which of the above apply to you. I’ll run the estimate for your specific property.

This page is general information for New Jersey home sellers and is subject to errors and omissions. It is not legal, tax, or accounting advice. Fees, rates, and municipal requirements change and vary by circumstance and location. Confirm anything that affects your transaction with your attorney, accountant, or the relevant municipal office before relying on it. Information current as of September 2026.