So you’re starting to think about selling your NJ home. The first question most homeowners have is, “how much is my home worth“? And the second question is usually, “how much is it going to cost to sell my home”?

First, I’ll address the tangible costs – the costs we know with some degree of certainty.

In New Jersey, you’re going to need a real estate attorney to handle the contract and closing. Most attorneys charge a flat rate of $1000 to $1500. A very complicated or lengthy closing can easily cost more.

Next is the property transfer fee charged by the state of NJ. The tax fee is not a fixed percentage – it’s based on a variable rate. However it’s easy to calculate using this transfer tax calculator. The complete formula is explained on NJ’s Department of Taxation.

Here are two examples:
– a sale price of $400,000 will incur a transfer tax of $3,215
– a sale price of $800,000 will incur a transfer tax of $7,305

Please note there are transfer tax discounts and exemptions for qualifying senior citizens aged 62 or older; blind persons; disabled persons; and property that is low and moderate income housing.

Another line item contributing to the total cost of your sale is the real estate commission. To learn what services I provide along with my commission percentage, please call me at 201-421-0506 cell or 201-445-4300 x231 office.

If your home sells for more than $1 million, there is an additional tax charged by the state. It is usually referred to as a Luxury Tax or Mansion Tax. It amounts to 1% of the sale price.

The intangible costs are twofold – how much you’ll spend getting the house ready for market, and how much you’ll spend on repairs following the buyer inspection. When it comes to spending money on getting your home ready for market, the amount is impossible to generalize. Needless to say, a well-presented home will sell for more money than a home that doesn’t show well. As for the second item, the inspector may fail your air conditioning unit. Or a tank sweep can reveal an unused underground oil tank you were not aware of. So once again, it’s a number that’s impossible to predict.

In some cases, you may elect to sell the property “as-is”. This may be the case for neglected properties or estate sales.

 

Summary

Tangible Costs

• Attorney
• Realty Transfer Fee
• Real Estate Commission
• Luxury Tax (only for sales over $1 million)

Intangible Costs

• Prepping Home For Sale
• Inspection Repairs

It’s never to early in the decision-making process to call in a real estate agent to help you with the process. I’m happy to assist you in making choices that will net you the best possible outcome. Please call me at 201-421-0506 cell or 201-445-4300 x231 office to arrange a consultation.