New Jersey Home Buying and Selling Costs in 2026

Knowing the full cost of a move, beyond the price, helps buyers and sellers make better decisions. Here is what each side pays in New Jersey today, including a 2025 change many people still don't know about.

What Buyers Pay at Closing

Buyers in New Jersey typically budget about 2% to 5% of the purchase price for closing costs, on top of the down payment. The main items:

• Attorney fees. Most New Jersey buyers hire a real estate attorney, who handles the three-day attorney review period and the closing.
• Title insurance and search fees, which protect your ownership of the home.
• Lender fees, including appraisal, origination, and any points to lower your rate.
• Prepaid items: a portion of property taxes, homeowners insurance, and mortgage interest collected at closing.
• Inspections, such as home, radon, and termite inspections, paid before closing.

Good News for Buyers: The Mansion Tax Now Falls on Sellers

For years, buyers of New Jersey homes over $1 million paid a 1% "mansion tax." For contracts signed on or after July 10, 2025, that changed: the fee, now officially called the Graduated Percent Fee, is paid by the seller, and it rises with the price. The rate applies to the full sale price, not just the amount above $1 million.

Source: New Jersey's FY 2026 budget legislation, signed June 30, 2025 (N.J.S.A. 46:15-7.2). For example, a $1.5 million sale carries a $15,000 fee; a $2.2 million sale carries $44,000.

What Sellers Pay

Sellers typically pay the real estate commission, their attorney, the state's realty transfer fee, and, above $1 million, the Graduated Percent Fee shown above. Because each rate applies to the entire price, a sale just over a threshold can cost noticeably more, which is worth knowing when setting a list price or weighing offers. Romila walks every seller through an estimate of their net proceeds before listing.

Flood Risk: What Sellers Must Now Tell You

Since March 20, 2024, New Jersey law requires sellers to disclose flood risk before a buyer is committed to a contract, including whether the home is in a FEMA 100-year or 500-year floodplain, whether flood insurance is required, any past federal flood assistance, current flood insurance, and whether an elevation certificate is available. These questions are part of the state's standard seller disclosure form. Across Morris County, about 8% of properties face severe flood risk over the next 30 years, according to First Street data shown on Redfin, so it is worth checking any home you are serious about.

Radon: Test Every Home

Radon is a natural, odorless gas that can build up in homes, and it is common in northern New Jersey. The EPA and the New Jersey Department of Environmental Protection recommend fixing a home if levels reach 4 picocuries per liter (pCi/L) or higher, and the state recommends testing every home regardless of town. A radon test is a standard, inexpensive part of a home inspection, and a mitigation system costs about $1,200 on average, according to NJDEP.

Source: NJDEP 2015 Radon Tier Assignment Report. Some towns are reported together. Levels vary widely from house to house, so a test is the only way to know.

Research Any Home or Neighborhood

• Flood zones: FEMA Flood Map Service Center
• Crime statistics: New Jersey State Police Uniform Crime Reports
• School performance: New Jersey School Performance Reports
• Property taxes: the Morris County property taxes by town guide on this site

This guide is general information, not legal or tax advice. Your attorney and accountant can advise on your specific transaction.

← All market insights