Before you celebrate an offer, it’s important to understand what selling actually costs. The number on paper and what you take home can be very different.
The Big Picture
In New Jersey, sellers typically pay 8%–10% of the sale price in total costs. On a $650,000 home, that’s about $52,000 to $65,000. Knowing where that money goes helps you plan and negotiate wisely.
Real Estate Commission
Usually the largest expense at 5%–6% of the sale price, split between agents. On $650,000, that’s $32,500–$39,000. Commission structures are evolving, so this may be negotiable.
NJ Realty Transfer Fee
A state tax paid by the seller, typically $3,000–$5,000 for homes in this price range. Homes over $1M trigger a 1% “mansion tax,” paid by the buyer.
Attorney Fees
New Jersey requires attorneys for real estate transactions. Expect $1,200–$2,000 for a standard deal. This is a key investment to protect your interests.
Pre-Listing Costs
These vary but are often worth it.
- Staging: $1,500–$4,000
- Photography/Video: $500–$1,500
- Repairs/updates: a few hundred to several thousand
- Pre-listing inspection: $400–$600
Strategic preparation can lead to higher offers and smoother transactions.
Seller Concessions
Buyers may request 1%–2% toward closing costs, or $6,500–$13,000 on a $650,000 home. These are more common in balanced or slower markets.
Mortgage Payoff
Any remaining loan balance is paid at closing. This comes from your proceeds and impacts your final net.
Capital Gains Tax
If the home was your primary residence for 2 of the past 5 years, you can exclude up to $250,000 ($500,000 for couples) in profit. Taxes may apply above that. Non-residents must also comply with NJ’s withholding rules.
Title-Related Costs
Buyers usually pay for title insurance, but sellers must resolve any liens, unpaid taxes, or legal issues before closing.
What You’ll Net (Example)
On a $650,000 sale, estimated costs may total $47,000–$53,000, leaving about $597,000–$603,000 before mortgage payoff and taxes.
The Bottom Line
Selling your home is a major financial decision. The best outcomes come from planning ahead, investing wisely in presentation, and working with a knowledgeable agent who can guide you through every step.
