Buying or selling in Jersey City and trying to pin down what you’ll pay at the closing table? You’re not alone. Closing costs can feel murky, and the numbers shift with price point, loan type, and local requirements. In this guide, you’ll learn who usually pays what, what’s included for buyers and sellers, how loan programs change the totals, and the smartest way to get a precise estimate for your situation. Let’s dive in.
Jersey City closing costs at a glance
Closing costs include third-party fees, lender charges, government fees, and prepaids like taxes and insurance. In many Jersey City transactions, buyers plan for roughly 2%–5% of the purchase price in closing costs, excluding the down payment. Sellers often net 6%–10% of the sale price in costs when broker commissions are included. Your exact amount depends on negotiated terms, property type, price point, and loan program.
Who pays what in Jersey City
Local custom and your contract determine allocation. Here is what is typical in New Jersey and Jersey City:
- Sellers commonly pay real estate broker commissions, the payoff of existing mortgages and liens, and New Jersey’s Realty Transfer Fee unless negotiated otherwise.
- Buyers generally pay lender charges, appraisal, inspections, lender-required title policy, recording of the mortgage, and most prepaids and escrows.
- Title insurance for the lender is typically a buyer expense when there is a mortgage. The owner’s title policy that protects the buyer is optional and negotiable regarding who pays.
- Attorney fees are common for both sides in New Jersey, and each party usually pays their own attorney.
Buyer closing costs: what’s included
Exact amounts vary with price and lender. Use this as a framework when budgeting.
Lender fees
These include application, processing, underwriting, and any loan origination points. Expect several hundred to a few thousand dollars. Points paid to lower your rate are optional and increase cash to close.
Appraisal
Your lender orders a valuation. Most appraisals cost several hundred dollars, with higher fees possible for larger or multifamily properties.
Title and settlement
You pay for the title search, closing or settlement fee, and the lender’s title insurance policy. Title premiums scale with price, and search or closing fees usually add a few hundred dollars.
Owner’s title insurance
This protects your ownership. It is optional, and who pays is negotiable. Many buyers choose to purchase it for peace of mind.
Recording fees
Hudson County charges to record the deed and mortgage. These are typically modest compared with other items.
Inspections and surveys
Inspection fees and any required survey or certificate add to costs. Requirements can vary by loan and title company.
Prepaids and escrows
Expect the first year of homeowner’s insurance, property tax prorations, and escrow deposits equal to several months of taxes and insurance. If the property has an HOA, budget for dues paid at closing and any association deposits.
Government and transfer fees
In most New Jersey transactions, the seller pays the state Realty Transfer Fee. Always confirm the allocation in your contract and with the title company.
Typical buyer total
If you use a mortgage, a 2%–5% range of the purchase price is a practical planning target for closing costs, not including your down payment. Cash buyers avoid lender fees but still pay title, recording, applicable taxes, and prepaids.
How loan type affects your costs
Different mortgage programs change both upfront and ongoing costs.
- Conventional: Standard appraisal and lender fees. If your loan-to-value is over 80%, plan for private mortgage insurance that is usually paid monthly and may have upfront components.
- FHA: Requires an FHA appraisal and includes an Upfront Mortgage Insurance Premium. The upfront premium is often financed, but if not, it raises cash to close. Ongoing monthly MIP applies.
- VA: No PMI, but there is a VA funding fee that can often be financed. VA appraisals and specific property requirements may apply.
- Cash: You skip lender-related fees, though you still have title, recording, prepaids, and any association or municipal items.
Seller closing costs: what’s included
Sellers face a smaller number of line items, but commissions and transfer fees carry the most weight.
Real estate commissions
This is usually the largest cost, commonly about 5%–6% of the sale price, typically shared between the listing and buyer’s brokers.
New Jersey Realty Transfer Fee
The state charges a fee based on the sale price that is commonly paid at closing. In many New Jersey deals, the seller pays this fee. Verify the current schedule and allocation with your title company or attorney.
Payoff of mortgages and liens
Any existing mortgages, HELOCs, or liens are paid from your sale proceeds at closing.
Seller attorney fees
Sellers typically retain an attorney in New Jersey. You pay your own counsel unless the contract states otherwise.
Municipal certificates and title clearance
Budget for required certificates such as smoke and CO, and for any title-related clearance items. Title and municipal searches will identify what is needed.
Prorations and adjustments
You are responsible for property taxes and association dues through the closing date. Any prepaid amounts beyond that date are credited back to you or adjusted at closing.
Repairs and concessions
Credits or repairs you agree to complete will reduce your net proceeds.
Typical seller total
Including commissions, sellers commonly see about 6%–10% of the sale price in total closing-related costs. Excluding commissions, administrative and statutory costs are usually a smaller percentage of the price.
Prepaids, escrows, and timing
Prepaids often surprise buyers because they are not lender fees but still affect cash to close. Escrow deposits for taxes and insurance can amount to several months of payments collected upfront. Early in the process, your lender provides a Loan Estimate outlining projected costs. At least three business days before closing, you receive a Closing Disclosure with final numbers. Sellers receive a settlement statement that details payoffs and net proceeds.
Jersey City specifics to verify
Jersey City and Hudson County add a few local checkpoints you should confirm early.
- New Jersey Realty Transfer Fee: Graduated by price and commonly paid by the seller. Confirm the current schedule with the New Jersey Division of Taxation and your title company.
- Hudson County recording: Recording fees for the deed and mortgage are set by the county. Your title company will include them in your estimate.
- Condo and HOA items: Many Jersey City homes are condominiums. Budget for resale packages, estoppel letters, move-in or transfer fees, and association deposits.
- Municipal certificates: Smoke and CO certificates and other local requirements may apply. Your title or closing attorney will order municipal searches to identify them.
- Flood insurance: Parts of Jersey City are in flood zones. Ask your lender and insurer about flood insurance, which affects both monthly costs and escrow funding.
Get a precise estimate
For the most accurate numbers, follow these steps.
Buyers
- Request a Loan Estimate from your lender that includes all lender charges.
- Ask the title company for a written quote for title insurance, search, settlement, and recording fees.
- Get a homeowner’s insurance quote and check flood requirements.
- If a condo, request association resale documents early to identify transfer or move-in fees.
Sellers
- Ask your listing agent for a detailed net proceeds worksheet at different price points.
- Request written payoff quotes from your mortgage servicer and any lienholders.
- Have your title company or attorney estimate the New Jersey Realty Transfer Fee and recording costs.
- Confirm any required municipal certificates and the timeline to obtain them.
Budgeting tips
- Plan for the buyer range of 2%–5% in closing costs if you use a mortgage, in addition to your down payment.
- If you want a lower interest rate, remember that discount points add to your upfront costs.
- If you are selling, model your net both with and without repairs or credits so you can negotiate with clarity.
- Build in a buffer for condo, HOA, or flood-related items that may be unique to Jersey City properties.
Quick examples by price
These examples are illustrative to show how totals scale with price.
- On a $400,000 sale, commissions of about 5%–6% equal $20,000–$24,000. The Realty Transfer Fee and other seller items typically add several hundred to a few thousand dollars.
- On an $800,000 sale, commissions equal $40,000–$48,000. Transfer and title-related fees increase with price, while some administrative fees rise modestly.
- At $1,500,000, commissions may exceed $75,000. Transfer fees and title premiums are higher, while many fixed fees change only slightly.
Ready to see your exact numbers and get ahead of every detail? Reach out for a tailored estimate, clear next steps, and concierge guidance from contract to keys. Connect with Amber Cruse to Request Your White-glove Consultation.
FAQs
Who pays New Jersey’s Realty Transfer Fee in a Jersey City sale?
- In many New Jersey transactions the seller pays the state Realty Transfer Fee, but your contract can allocate it differently. Confirm with your title company or attorney.
What closing costs do Jersey City buyers typically pay?
- Buyers usually pay lender fees, appraisal, inspections, lender’s title insurance, recording of the mortgage, and prepaids like taxes and insurance, plus any condo or HOA-related fees.
Is owner’s title insurance required for Jersey City purchases?
- No. The owner’s policy is optional, though many buyers choose it. The lender’s title policy is required if you have a mortgage.
How do FHA, VA, and conventional loans change closing costs?
- FHA adds an upfront and monthly mortgage insurance premium, VA has a funding fee, and conventional loans may require PMI if down payment is under 20%. Some fees can be financed per program rules.
Can buyers roll closing costs into the mortgage in Jersey City?
- Some costs can be financed or paid with seller concessions, subject to program limits and appraisal value. Ask your lender for program-specific limits.
How do I get a precise closing-cost estimate for my Jersey City deal?
- Buyers should request a Loan Estimate, title quote, and insurance quote. Sellers should request a net sheet and payoff demands. Both should ask the title company for a draft settlement statement before closing.
