Sticker shock at the closing table is no fun. If you are buying or selling in Hudson County, knowing what shows up on your final statement helps you budget, negotiate, and avoid surprises. You will learn who typically pays what in New Jersey, what each line item actually covers, realistic ranges to plan for, and how to estimate your numbers with a simple worksheet. Let’s dive in.
Who pays what in New Jersey
In New Jersey, customs are clear but negotiable:
- Sellers usually pay the real estate broker commission and the New Jersey Realty Transfer Fee (state RTF).
- Buyers usually pay lender-related costs, appraisal and inspections, title services and the lender’s title policy, recording fees, and prepaids such as property taxes and insurance.
- Owner’s title insurance is based on local custom and negotiation. In parts of New Jersey, either side may pay for the owner’s policy.
- Many items can shift with your contract. You can negotiate seller concessions, who pays certain title charges, or if a home warranty is included.
Always verify details with your lender, title company or closing attorney.
Seller closing costs
Real estate broker commission
This is the fee paid for marketing, negotiations, and managing the sale through closing. In many New Jersey markets it is commonly about 5% to 6% of the sale price. Commission is negotiable and set by your listing agreement.
New Jersey Realty Transfer Fee (RTF)
The state RTF applies to most residential sales and is calculated on a graduated schedule by price. The amount can range from a few hundred to several thousand dollars. Check the current schedule with the New Jersey Department of the Treasury before you set your final budget.
Payoff of mortgages and liens
If you have a mortgage, the payoff of principal plus any accrued interest is paid from your proceeds. Any other liens, such as tax or HOA liens, are also cleared at closing. These are not fees but required disbursements that reduce your net.
Attorney and closing fees
Sellers often hire an attorney for review and closing. Typical seller-side legal and closing support can run about 500 to 1,500 dollars or more depending on complexity. Ask for a written estimate early.
Title-related seller charges
Expect items like payoff statement fees, lien searches, and municipal certificates if required. Depending on your town’s requirements, these can total a few hundred dollars to over 1,000 dollars.
Municipal, utility, and HOA prorations
You will pay your share of property taxes, water or sewer bills, and HOA dues up to the closing date. The timing of your closing and the town’s billing cycle determine the exact amounts.
Local transfer or filing surcharges
Some municipalities may require additional filings or charges. Confirm requirements with the Hudson County Clerk and your specific town hall to avoid delays.
Home warranty (if agreed)
If you offer a buyer home warranty coverage, plan for about 300 to 700 dollars. This is optional and negotiated in the contract.
What most sellers budget
Excluding any mortgage payoff, seller closing costs in many New Jersey markets commonly total about 6% to 10% of the sale price. The commission is usually the largest single cost. Add the state RTF and any town-specific certificates to build an accurate estimate.
Buyer closing costs
Loan origination and lender fees
Lenders charge for application, processing, and underwriting. A common rule of thumb is about 0.5% to 1.0% of the loan amount, though flat-fee structures also exist. Your Loan Estimate will detail these charges.
Discount points (optional)
You can pay prepaid interest to lower your rate. One point equals 1% of your loan amount. Whether it makes sense depends on the break-even period and your timeline in the home.
Appraisal
Most loans require an appraisal to confirm value. Appraisals often cost about 400 to 800 dollars depending on property type and complexity.
Home inspections
Plan for a general home inspection and additional specialty inspections as needed. General inspections often run about 300 to 600 dollars. Pest, radon, sewer, or lead inspections are extra.
Title insurance and settlement charges
- Lender’s title policy is typically paid by the buyer and protects the lender’s lien.
- Owner’s title policy protects your ownership. In New Jersey, who pays this can vary by town and negotiation.
- Title company settlement and closing fees are often about 300 to 800 dollars. Title insurance premiums are tied to price and loan amount and follow filed schedules.
Recording and county clerk fees
Recording the deed and mortgage with Hudson County and obtaining any required certificates typically runs about 50 to 300 dollars for standard filings. Complex transactions can cost more.
Prepaid taxes and escrow deposits
At closing, you usually prepay a portion of property taxes and homeowners insurance and fund your escrow account. Lenders often collect about 2 to 6 months of taxes and insurance. Given Hudson County’s tax environment, these prepaids can be a meaningful part of your cash to close.
Mortgage insurance (if applicable)
If your down payment is less than 20%, you may have private mortgage insurance or a program-specific premium. Terms vary by loan program and borrower profile.
Survey (if required)
Some transactions call for a boundary survey or certified plot plan. Typical costs run about 300 to 1,000 dollars depending on the site and scope.
HOA and condo association items
If you are buying into an HOA or condo association, expect prorated dues from your closing date and possible transfer or administrative fees. These range from modest fees to several hundred dollars.
What most buyers budget
Buyer closing costs in many New Jersey markets, not including the down payment, commonly total about 2% to 5% of the purchase price. The biggest variables are lender fees, title charges, and prepaids for taxes and insurance.
Hudson County tips and local checks
- Prices and taxes vary by neighborhood. Towns like Jersey City and Hoboken often have higher purchase prices, which can increase title premiums and prepaid amounts.
- Certificates and clearances are town-specific. Many Hudson County municipalities require tax searches, water and sewer clearances, and sometimes a certificate of occupancy or compliance. Start these early because processing can take days to weeks depending on the town.
- Confirm recording and certificate fees. Check with the Hudson County Clerk and your municipality for current schedules and any local surcharges.
- Clarify who pays the owner’s title policy. Customs vary by area and market conditions. Align on this during offer negotiations.
Estimate your costs with this worksheet
Use the fields and formulas below to create a quick estimate. All figures are placeholders. Replace every number with quotes from your lender, title company, closing attorney, and municipality.
Inputs and symbols
- Sale price (S)
- Purchase price (P)
- Loan amount (L)
- Commission rate as decimal (CR)
- Estimated seller attorney and closing fees (S_attorney)
- Estimated lender fees (Lender_fees)
- Estimated appraisal fee (Appraisal)
- Estimated inspections total (Inspection)
- Estimated title and lender policy premium or fee (Title_percent or Title_flat)
- Estimated recording and municipal certificates (Recording)
- Estimated prepaids and escrow deposit (Prepaids)
- Mortgage insurance paid at closing if any (MI)
- Other seller costs (Other_seller)
- Other buyer costs (Other_buyer)
Formulas
- Seller commission = S × CR
- Seller estimated closing costs = Seller commission + S_attorney + RTF (verify) + Recording (seller portion if any) + Other_seller
- Buyer estimated closing costs = Lender_fees + Appraisal + Inspection + Title (Title_percent × L or Title_flat) + Recording (buyer portion) + Prepaids + MI + Other_buyer
- Net seller proceeds estimate = S − Seller estimated closing costs − Mortgage payoff − Taxes or other liens
- Cash to close for buyer = Down payment (P − L) + Buyer estimated closing costs
Hypothetical example — replace all numbers with quotes
Assumptions: Purchase price 600,000 dollars; Loan amount 480,000 dollars; Commission 6% (CR 0.06); Seller attorney 1,000 dollars; Lender fees 1.0% of loan (4,800 dollars); Appraisal 600 dollars; Inspection 500 dollars; Title and lender policy 0.6% of loan (2,880 dollars); Recording and municipal fees 300 dollars; Prepaids 3,000 dollars.
- Seller commission = 600,000 × 0.06 = 36,000 dollars
- Seller closing costs (estimate) = 36,000 + 1,000 + RTF (verify) + 300 = 37,300 dollars + RTF
- Buyer closing costs (estimate) = 4,800 + 600 + 500 + 2,880 + 300 + 3,000 = 12,080 dollars
- Buyer cash to close = Down payment (600,000 − 480,000 = 120,000) + 12,080 = 132,080 dollars
Note: This example omits the seller’s mortgage payoff and does not include the exact RTF. Your actual totals will differ.
How to get firm numbers
- Ask your lender for an official Loan Estimate that details rate, points, fees, and prepaids.
- Ask your title company or closing attorney for a written quote that includes title premiums, settlement fees, and recording estimates for Hudson County.
- Confirm the current state RTF schedule and your town’s certificate requirements before you sign.
Next steps
Understanding closing costs is the fastest way to set realistic expectations, negotiate smartly, and avoid last-minute friction. Whether you are selling a condo in Hoboken or buying a multi-family in Jersey City, get written estimates from your lender and title team early and verify municipal requirements for your specific town. If you want a customized closing cost estimate or a copy of the worksheet formatted for Excel or Google Sheets, reach out to Conley Realty. We will walk you through the numbers and next steps.
FAQs
Who pays New Jersey’s Realty Transfer Fee?
- In most New Jersey sales the seller pays the state Realty Transfer Fee. Confirm any exemptions or exceptions with your closing team.
How much should a Hudson County buyer budget beyond the down payment?
- A common range is about 2% to 5% of the purchase price for closing costs, plus prepaids for taxes and insurance.
Who pays the owner’s title insurance policy in Hudson County?
- Local custom varies. Either party may pay, so confirm with your title company and negotiate it in your offer.
What municipal certificates are typical in Hudson County towns?
- Many towns require tax, water and sewer clearances and sometimes a certificate of occupancy or compliance. Check your municipal clerk early.
Can closing costs be negotiated in Hudson County?
- Yes. You can negotiate seller concessions, who pays the owner’s title policy, a home warranty, and other fees as part of your contract.
How long do municipal certificates and payoffs take in Hudson County?
- Timelines vary by town and workload. Plan for several days to a few weeks and start requests early to protect your closing date.
