Who pays what in New Jersey
New Jersey sellers pay the Realty Transfer Fee; buyers pay the 1% mansion tax at $1M+, title, attorney (NJ is attorney-customary), and the nation's highest property-tax prepaids.
Closing costs by county in New Jersey
Rates and medians vary widely inside New Jersey. County-level breakdowns: Bergen County (Hackensack) — 2.05% effective property tax, median $650,000; Middlesex County (New Brunswick / Edison) — 2.15% effective property tax, median $520,000; Essex County (Newark / Montclair) — 2.45% effective property tax, median $545,000.
Highest property taxes in America hit your prepaids
NJ's ~2.2% effective property-tax rate means escrow setup alone can be $5,000–$7,000 on a median home (6 months of taxes). Add the mansion tax if you're above $1M and attorney fees (~$1,500–$2,500), and NJ buyers should budget 3–4% of price even though transfer tax is the seller's problem.
Negotiation levers in New Jersey
Three moves that actually work: (1) get Loan Estimates from 3 lenders — origination and points vary by thousands; (2) ask for seller concessions (3% conventional under 10% down, 6% above, 6% FHA) credited at closing; (3) close at month-end to shrink prepaid interest from ~30 days to ~2. In New Jersey, transfer-tax custom is negotiable too — everything is a contract term.
FAQ
How much are closing costs in New Jersey?
Budget 2–4% of the purchase price for buyer closing costs in New Jersey, plus your down payment. On the $540,000 median New Jersey home that's roughly $13,500–$21,600. NJ Realty Transfer Fee (~0.5–1%) is seller-paid; buyers at $1M+ pay the 1% mansion tax.
Does the buyer pay transfer tax in New Jersey?
No — New Jersey transfer taxes are seller-customary (or don't exist). NJ Realty Transfer Fee (~0.5–1%) is seller-paid; buyers at $1M+ pay the 1% mansion tax.
Can I roll closing costs into the loan in New Jersey?
Not directly, but you can trade a slightly higher rate for a lender credit that covers costs, or negotiate seller concessions. The break-even on a lender credit is typically 3–5 years — only worth it if you'll sell or refinance before then.
How much should I save to buy a house in New Jersey?
Down payment + closing costs + 2–3 months of reserves. On the New Jersey median $540,000 home with 10% down, that's roughly $70,200 before reserves — the calculator above gives your exact stack.
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