Closing Costs in New Jersey
The average closing cost in New Jersey is $19,661, which is 3.34% of the home price. New Jersey's transfer tax rate is Graduated scale, ~1%.
New Jersey closing costs include a realty transfer fee that ranges from $2 per $500 to $6.05 per $500 depending on the sale price, with higher-priced properties paying a larger percentage. Properties over $1 million incur a 1% mansion tax. The state also requires the seller to pay a 1% estimated income tax withholding for non-resident sellers. Attorney fees are mandatory and typically run $1,500-3,000. New Jersey's closing costs are among the highest in the nation.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Avg Closing Costs
$19,661
As % of Price
3.34%
Transfer Tax
1%
Attorney Required
Yes
Closing Cost Breakdown for a $588,776 Home
| Item | Estimated Cost |
|---|---|
| Loan Origination Fee (1%) | $4,710 |
| Appraisal Fee | $500 |
| Credit Report | $50 |
| Title Search & Insurance | $2,944 |
| Transfer Tax | $5,888 |
| Recording Fees | $150 |
| Home Inspection | $400 |
| Survey | $350 |
| Attorney Fee (required) | $1,200 |
| Prepaid Property Tax (2 months) | $1,737 |
| Prepaid Homeowners Insurance (1 year) | $1,766 |
| Prepaid Interest (15 days) | $1,258 |
| Estimated Total | $20,953 |
* Estimates based on average New Jersey home price of $588,776 with 20% down payment. Actual costs may vary. Transfer tax, attorney fees, and prepaid items are state-specific.
How to Reduce Closing Costs in New Jersey
Know the Graduated Transfer Fee
New Jersey's realty transfer fee increases at higher price points — $2 per $500 up to $150,000, then $3.35 per $500 up to $200,000, then $3.90-$6.05 per $500 at higher amounts. First-time buyers who are blind, disabled, or age 62+ may qualify for a $3,500 fee reduction.
Budget for New Jersey's Property Taxes Immediately
New Jersey property taxes average over $9,000 per year statewide and can exceed $15,000-20,000 in northern suburbs. This is the single most important cost to understand before buying — it will likely exceed your mortgage principal and interest combined.
Use NJHMFA Down Payment Assistance
The New Jersey Housing and Mortgage Finance Agency offers up to $15,000 in down payment assistance for first-time buyers through a forgivable second mortgage. Their Smart Start program provides up to $15,000 with no monthly payments if you stay in the home for 5 years.
Get Underground Oil Tank Sweep
Many New Jersey homes (especially pre-1990) had underground oil tanks for heating. If not properly decommissioned, these tanks can leak and create environmental cleanup costs of $10,000-100,000+. A ground-penetrating radar sweep costs $250-400 and is essential in New Jersey.
Legal Context for New Jersey Closings
Conveyance Document
Bargain-and-sale deed with covenants
Security Instrument
Mortgage
Foreclosure Process
Judicial
Attorney Required
Yes
New Jersey uses bargain-and-sale deed with covenants for property transfers and mortgage as the security instrument. An attorney is required at closing, which adds to your closing costs.
