Thinking about selling your home? Before you focus on the sale price, there’s another important number to understand: how much money you’ll actually walk away with at closing.
Whether you’re selling a home in Westfield, Scotch Plains, Fanwood, Cranford, Mountainside, Clark, Garwood or elsewhere in Union County, NJ, understanding the expenses involved can help you plan your next move with confidence.
From real estate commissions and New Jersey transfer fees to attorney expenses, mortgage payoffs and potential repairs, there are several costs to consider.
The good news? With the right preparation, you can estimate many of these expenses before your home goes on the market.
Here’s what New Jersey homeowners should know.
1. Real Estate Commissions: What Do Sellers Pay?
Real estate commissions are often one of the largest expenses associated with selling a home.
However, there’s an important point every homeowner should understand:
Real estate commissions are not set by law and are fully negotiable.
Commission arrangements vary depending on the brokerage, services provided and the terms negotiated between the parties.
Sellers may also encounter requests involving compensation for a buyer’s representative. These arrangements are negotiable and should be clearly explained before you sign an agreement.
When interviewing a Realtor, don’t focus solely on the commission. Ask what services are included.
A comprehensive marketing strategy may involve professional photography, pricing analysis, online marketing, listing exposure, open houses, showing coordination and negotiation.
The goal isn’t simply to list your home. It’s to position it effectively in the market and help you achieve a successful sale.
2. New Jersey Realty Transfer Fees
One expense that’s especially important for New Jersey sellers to understand is the Realty Transfer Fee (RTF).
This is a state-imposed fee generally paid by the seller when transferring ownership of real property.
The amount depends on the property’s sale price and the applicable fee schedule. Certain sellers or transactions may qualify for exemptions or reduced rates.
For many homeowners, this can represent a meaningful closing expense.
Important: Additional Fees on Homes Selling for More Than $1 Million
New Jersey changed its rules for certain property transfers beginning in July 2025.
For applicable residential transactions involving contracts executed on or after July 10, 2025, sellers—not buyers—are responsible for an additional Graduated Percent Fee when the sale price exceeds $1 million.
The applicable rate ranges from 1% to 3.5% of the total sale price, depending on the property’s value.
For example, under the current rules, an applicable $1.2 million home sale would generally be subject to a $12,000 Graduated Percent Fee, in addition to the regular Realty Transfer Fee.
Because these expenses can be substantial, particularly in higher-priced Union County markets, it’s important to calculate them before deciding on a listing price or planning your next purchase.
Your real estate attorney can confirm which fees apply to your particular transaction.
3. Real Estate Attorney Fees
In New Jersey, buyers and sellers commonly work with real estate attorneys to navigate the legal aspects of a transaction.
A seller’s attorney may assist with contract review, attorney review, inspection negotiations, title-related issues, closing documents and other legal matters.
Fees vary depending on the attorney and complexity of the transaction.
It’s a good idea to ask about anticipated legal costs early in the selling process so you can include them in your budget.
4. Mortgage Payoff: What Happens to Your Existing Loan?
If you still have a mortgage, the remaining balance generally must be paid off when you sell.
This is one of the biggest factors in determining your actual proceeds.
For example, if your home sells for $800,000 and you owe $300,000 on your mortgage, the difference is $500,000.
But that doesn’t mean you’ll walk away with $500,000.
You’ll still need to account for commissions, transfer fees, legal expenses and other applicable closing costs.
Also, your mortgage payoff amount may be slightly higher than the balance shown on your latest statement because of accrued interest and other possible charges.
Your lender can provide an official payoff statement.
5. Repairs and Improvements Before Listing
Not every home needs a major renovation before going on the market.
In fact, one of the biggest mistakes sellers can make is spending money on improvements without first understanding what buyers in their market actually expect.
Depending on your home’s condition, worthwhile preparations may include:
- Fresh interior paint
- Minor plumbing or electrical repairs
- Deep cleaning
- Decluttering
- Landscaping and curb appeal
- Repairing damaged flooring or trim
- Updating outdated fixtures
- Addressing visible maintenance issues
Some homes may benefit from more extensive work. Others may be better positioned for sale with relatively modest improvements.
Before investing thousands of dollars in renovations, speak with a local Realtor who understands your neighborhood and price range.
The objective is to make smart decisions about where your money will have the greatest impact.
6. Staging, Photography and Marketing
First impressions matter, especially when buyers begin their home search online.
Professional photography, thoughtful presentation and a strong marketing plan can help showcase your home’s best features.
Depending on the property, preparing it for sale might involve:
- Rearranging existing furniture
- Removing excess furniture
- Decluttering and organizing
- Professional staging
- Updated landscaping
- Professional listing photography
- Floor plans or virtual tours
Some services may be included in your Realtor’s marketing plan, while others may involve additional expenses.
Ask what’s included before listing your property.
7. Property Taxes and Other Closing Adjustments
New Jersey property taxes are another consideration when selling a home.
At closing, property taxes are generally adjusted between buyer and seller based on the closing date and which amounts have already been paid.
Depending on the transaction, sellers may also have expenses related to municipal requirements, lien or judgment satisfaction, document preparation, recording or other closing adjustments.
If you’re selling a condominium or property within a homeowners association, additional fees or documentation requirements may apply.
Your attorney can help you understand the anticipated closing adjustments for your property.
8. Buyer Concessions and Inspection Negotiations
Even after you’ve accepted an offer, the final financial picture may change.
Depending on the contract and negotiations, a buyer may request repairs, a closing-cost credit or other concessions.
For example, an inspection might identify an issue that leads to a negotiated repair or credit.
Not every transaction involves concessions, and sellers aren’t automatically required to agree to every request.
However, it’s wise to understand how potential negotiations could affect your bottom line.
An experienced Realtor can help you evaluate offers based on more than just the purchase price.
9. Moving Expenses and the Cost of Your Next Home
One expense sellers sometimes overlook is the move itself.
Depending on your plans, you may need to budget for:
- Professional movers
- Packing supplies
- Storage
- Temporary housing
- Cleaning services
- Utility connections
- Travel or relocation expenses
- Costs associated with purchasing your next home
If you’re buying another property, coordinating the sale and purchase can become especially important.
Planning ahead can help you avoid unexpected financial pressure during the transition.
How Much Money Will You Actually Make Selling Your Home?
Let’s look at a simplified example.
Suppose you’re selling a home in Union County for $800,000.
Your estimated expenses might look something like this:
| Item | Illustrative Amount |
| Home sale price | $800,000 |
| Mortgage payoff | -$300,000 |
| Brokerage compensation (illustrative negotiated 4.5%) | -$36,000 |
| NJ Realty Transfer Fee (standard schedule) | -$7,075 |
| Attorney fees (illustrative) | -$1,800 |
| Repairs and preparation | -$3,000 |
| Other closing expenses and adjustments (illustrative) | -$1,500 |
| Estimated net proceeds | $450,625 |
This is a hypothetical example, not a quote or prediction of actual selling costs. The 4.5% brokerage compensation is an example only, not a standard or recommended rate. Actual expenses depend on the property, negotiated agreements, exemptions, closing adjustments and other factors. Moving expenses, potential capital gains taxes and certain other costs are not included.
This example illustrates why it’s so important to understand your estimated net proceeds, rather than focusing only on your home’s potential selling price.
Can You Reduce the Cost of Selling Your Home?
While some selling expenses are unavoidable, there may be opportunities to make the process more cost-effective.
Start planning early. Giving yourself time to prepare can help avoid expensive last-minute decisions.
Make strategic improvements. Focus on repairs and updates that matter to buyers rather than assuming every room needs renovation.
Understand your home’s market value. Pricing your home appropriately from the beginning can help support an effective selling strategy.
Review your expenses in advance. Ask for estimates of transfer fees, legal costs, mortgage payoff and other anticipated charges.
Evaluate the complete offer. The highest offer isn’t always the strongest when contingencies, concessions, timing and other terms are considered.
Most importantly, work with a Realtor who can help you understand both the market and the financial implications of selling.
Why Local Knowledge Matters When Selling in Union County
Real estate conditions can vary considerably from one community, neighborhood and price range to another.
A home in Westfield may attract a different group of buyers than a property in Clark or Garwood. Even within the same town, location, condition, lot size and other features can influence buyer interest and pricing.
Understanding these differences is essential when developing a selling strategy.
A local Realtor can help you evaluate recent comparable sales, understand current competition and determine how to position your home effectively.
And when you’re planning your next move, that local expertise can be just as important as knowing the estimated costs.
Thinking About Selling Your Union County Home?
Before you make any decisions, let’s start with two important questions:
What is your home worth in today’s market?
And how much could you actually walk away with after selling expenses?
If you’re considering selling in Westfield, Scotch Plains, Fanwood, Cranford, Mountainside, Clark, Garwood or the surrounding Union County area, I’d be happy to help you explore your options.
Together, we can review your home’s potential market value, discuss preparations that may make sense and develop a strategy based on your goals and timeline.
Contact Jill Skibinsky at (908) 419-3333 to schedule a complimentary home consultation and Comparative Market Analysis (CMA). Let’s find out what your home could be worth—and what your next move might look like.
Disclaimer: This article provides general real estate information and is not legal, financial or tax advice. Laws, fees and transaction requirements can change. Consult qualified professionals about your specific circumstances.
Frequently Asked Questions About Selling a Home in New Jersey
Selling costs vary based on the home’s price, mortgage balance, negotiated brokerage compensation, transfer fees, attorney expenses, property condition and other closing costs. A personalized seller net proceeds estimate can help you understand what to expect.
The seller generally pays the New Jersey Realty Transfer Fee, subject to applicable exemptions. Additional graduated fees may also apply to certain properties selling for more than $1 million.
Under New Jersey’s rules effective for applicable contracts executed on or after July 10, 2025, the seller is responsible for the Graduated Percent Fee on qualifying property sales exceeding $1 million. This replaced the previous buyer-paid fee structure for applicable transactions.
Yes. Real estate commissions are not set by law and are fully negotiable. The amount and payment arrangements should be discussed with your Realtor and documented in the appropriate brokerage agreements.
Not necessarily. Some repairs may improve your home’s presentation and marketability, while major renovations may not be financially worthwhile. Consult a local Realtor before spending money on improvements specifically for resale.
Start with your estimated sale price, then subtract your mortgage payoff, brokerage compensation, transfer fees, legal expenses, applicable concessions and other selling costs. Your Realtor and attorney can help refine the estimate.
It depends on your circumstances. Some homeowners may qualify for federal capital gains exclusions on the sale of a primary residence, while others may owe taxes. New Jersey tax rules and nonresident seller requirements may also apply. Consult a qualified tax professional for guidance specific to your situation.
Ideally, several months before you expect to list. An early consultation can help you understand your home’s potential value, identify worthwhile preparations and create a realistic selling timeline.
