How Much Are Closing Costs When You Sell a Home in New Jersey?
A seller-friendly breakdown, with real examples, and what actually applies to Atlantic & Cape May County homes.
For many sellers, closing costs feel like one of the murkiest parts of the entire selling process. I see this every day: people come in with estimates from online calculators, things they’ve heard from friends, or worst of all — myths from Facebook threads. And while it’s completely understandable, it often leaves sellers shocked or confused when the real numbers show up in a net sheet.
But here’s the good news:
Closing costs in New Jersey are predictable once you understand what actually applies.
And when you break them down the right way, you can estimate your net proceeds with a surprising amount of accuracy — long before you ever accept an offer.
Whether you own a shore home, a second home, a rental, or a year-round property, this guide walks you through the costs that matter, the ones sellers always misunderstand, and the differences you’ll see locally in Atlantic County and Cape May County.
Why Closing Costs Feel Confusing — and Why They Don’t Have to Be
Most sellers aren’t actually confused about the costs themselves — they’re confused about:
which costs apply to them
which costs apply only to buyers
what varies by county
what varies by attorney
what depends on the property type
and what is not really a “cost,” even though it feels like one
And then, of course, there’s the infamous “Exit Tax,” which is one of the most misunderstood parts of selling in New Jersey.
My goal is simple:
Explain everything in real-world language, with no fluff, no scare-tactics, and no legal jargon.
Just a clean, practical breakdown so you can plan properly.
The Core Closing Costs Every New Jersey Seller Should Expect
Below are the major categories, written in the same everyday language I use when reviewing a net sheet with clients.
1. Real Estate Commission
This is typically the largest line item for sellers and varies by agreement.
Because commission structures are individualized, this blog doesn’t list percentages — but your net sheet will include an exact number once your brokerage agreement is set.
2. Title Company or Attorney Fee (South Jersey Norms)
In South Jersey — especially throughout Atlantic and Cape May Counties — most sellers choose to close through a title company rather than an attorney. Title companies handle the bulk of the closing process here, including title work, settlement coordination, and document preparation.
However, sellers still have the option to hire an attorney if they prefer additional legal review or want more hands-on representation during negotiations.
Here’s how the cost difference typically looks:
If You Use a Title Company (most common)
Sellers generally do not pay a separate “closing fee” to the title company
Typical seller-paid items include payoff-related fees (lien searches, discharge fees, etc.)
These fees are usually modest and predictable, often $300–$650 total depending on payoff complexity
If You Use an Attorney Instead (optional)
Attorney representation is still completely acceptable — simply less common locally.
Typical attorney fees for seller-side representation in South Jersey range from:
$900–$1,500 in Atlantic County
$1,200–$2,000 in Cape May County (waterfront/condo/complex sales often toward the higher end)
Neither option is “better” — it’s about preference.
Sellers who want legal review tend to choose an attorney.
Sellers comfortable with the standard South Jersey process typically rely on the title company.
3. Transfer Tax (State of New Jersey)
New Jersey charges a transfer tax on nearly all residential real estate sales.
The amount depends on the sale price and whether the seller qualifies for any reduced-rate categories (senior citizens, low/moderate income, blind/disabled, etc.).
Examples (approximate, rounded):
$750,000 sale: around $6,000+
$1,200,000 sale: around $10,000+
Your exact amount is calculated using the state formula — but the above examples give you a realistic sense of what to expect.
This tax applies regardless of county.
However, the closing culture (how early it’s calculated, how attorneys prepare for it) varies slightly between Atlantic and Cape May counties.
4. Title-Related Fees That Sellers Commonly Overestimate
Many sellers think they pay title insurance.
In New Jersey, the buyer pays for title insurance, not the seller.
Sellers may only be responsible for:
The title “settlement” fee (typically covered by the buyer’s side, depending on contract structure)
Possible payoff bank fees
Lien payoff statements
Mortgage discharge fees
These are generally small, predictable costs.
5. Staging, Prep, and Pre-Inspection Costs (Optional but Common)
These aren’t required, but many sellers choose them for competitive reasons.
Atlantic County norms:
Light staging: often $400–$1,000
Deep cleanings: $250–$500
Pre-inspection (optional): $400–$600
Minor repairs: case-by-case
Cape May County norms:
Light staging: often $500–$1,200
Deep cleanings: $300–$600
Pre-inspection: $450–$650
Coastal wear-and-tear repairs: often higher due to salt exposure
These are not “closing costs” in the strict sense, but they affect your net just the same — and many sellers budget them alongside the closing worksheet.
6. Municipal Certificates / Smoke Certificates
Municipal inspection fees vary by town, not just county.
Most are between $50–$150, with some shore towns being slightly higher.
In Cape May County especially, certain municipalities require more detailed smoke/CO inspections, which can add one extra step to pre-closing prep.
Now the Big One: The NJ “Exit Tax” (and What It Actually Is)
Let’s address the issue that causes the most panic, confusion, and misinformation.
There is no actual “Exit Tax.”
New Jersey does not charge a special tax because you’re “exiting” the state or selling your home.
The phrase “Exit Tax” is a nickname — and unfortunately, a misleading one.
What people call the “Exit Tax” is actually:
A prepayment of estimated capital gains taxes for sellers who are NOT New Jersey residents at the time of closing.
It’s designed to prevent out-of-state owners from selling a NJ property and skipping out on taxes owed.
Two big things sellers need to know:
This is not an extra tax.
It is a withholding — a prepayment — toward your eventual tax return.You can get some or all of it back.
Your accountant calculates your final tax liability.
If you overpaid, the state refunds the difference.
How much is withheld?
New Jersey requires the greater of:
2% of the sale price
orthe calculated capital gains on the property (filed through a special form)
Most out-of-state sellers end up paying 2% of the sale price at closing, which is why the number feels large.
Example: Out-of-State Seller
Sale price: $750,000
2% withholding: $15,000
This is not an additional tax — it is advanced payment toward your capital gains.
When your CPA files your return, you may get some of this back depending on:
your true gain
your basis
improvements
holding period
applicable deductions
Example: In-State Seller (NJ Resident)
Sale price: $750,000
Withholding: $0
You do not pay the 2% withholding if you are a current NJ resident.
Numeric Example: Full Closing Cost Breakdown
Here’s a simplified but realistic example for a NJ seller.
Scenario A: NJ Resident Seller – $750,000 Sale
Item Estimated Cost
Attorney fee $1,500
Transfer tax ~$6,000
Misc. lien/mortgage release fees $300–$600
Municipal inspection certificate $50–$150
Total Estimated Seller Closing Costs ~$8,000–$8,500 (plus commission)
Scenario B: Out-of-State Seller – $750,000 Sale
Same items as above plus:
Item Estimated Cost
2% Non-Resident Withholding $15,000
Total Costs ~$23,000–$23,500 (plus commission)
Again — the $15,000 is not an extra tax.
It is just held until your tax return reconciles it.
Scenario C: Higher-End Example – $1.2M Sale (NJ Resident)
Item Estimated Cost
Attorney fee $1,500–$2,000
Transfer tax ~$10,000–$11,000
Municipal certificate $75–$150
Misc. fees $300–$600
Total ~$12,000–$14,000 (plus commission)
These examples are designed to give sellers a realistic, grounded sense of their net proceeds.
Why Closing Costs Are Slightly Different in Atlantic vs. Cape May County
While state-level closing costs (transfer tax, withholding, etc.) are identical, the local norms differ a bit:
Atlantic County
Attorney fees often start lower
Staging companies tend to be more budget-friendly
Municipal inspection fees are often consistent and predictable
Many inland towns require simple smoke/CO inspections only
Cape May County
Attorney fees trend higher (especially on waterfront or condo properties)
Minor surface repairs and cleanings often cost more due to coastal wear
Some towns require more detailed smoke/CO verification
Certain shore communities ask for more documentation during the sale
These differences are not dramatic — but when you’re planning a sale, they matter.
Why It Helps to Review Closing Costs Early — Not Later
The earlier we review estimated closing costs, the clearer your decision-making becomes.
Some sellers discover they have more equity than expected.
Some discover they can net a number that jumpstarts their next purchase.
Some decide the timing is ideal.
And some realize a few repairs could dramatically shift their sale price.
A good net sheet lets you plan:
your timeline
your next home
your tax strategy
your moving budget
and your pricing strategy
This is part of what I do for every seller — whether you’re in Atlantic County, Cape May County, or anywhere in between. The more clarity you have, the more confident your sale becomes.
Bottom Line: Closing Costs Are Predictable — When You Understand What Applies
Selling a home in New Jersey doesn’t have to feel overwhelming or uncertain.
Closing costs are simply a combination of:
attorney fees
transfer tax
minor municipal items
possible staging/prep costs
and, for out-of-state sellers, tax withholding
Once you understand these pieces — and once someone walks you through real numbers, not guesses — you can plan your sale confidently and clearly.
Closing shouldn’t be a surprise.
It should be a calculation.
And with the right preparation, it becomes exactly that.
Here to Help!
If you want a clear, step-by-step estimate of your actual closing costs — or a full net sheet based on your home, price point, and situation — I’d be glad to help. There’s no pressure or obligation. Just straightforward information to help you plan confidently.
— Mike Sutley
Lexy Realty Group
Professional Note:
This guide is for general informational purposes. Closing costs, tax obligations, and forms vary by property and seller status. Always consult with a CPA or attorney for advice specific to your tax return or legal obligations.
