How Much Does it Cost to Sell your NJ home?

sell your nj home

You’ve made the decision to sell your NJ home. This can be an exciting time for many reasons, not the least of which is the proceeds from selling your old house. But what a lot of sellers don’t realize is that selling a house can sometimes be a costly experience. Zillow estimates that an average U.S. homeowner spends more than $18,000 in extra costs when trying to sell their home. These extra costs can eat away at your proceeds. Here, we take a look at the major costs of selling your house.

Closing Costs

Typically, it is up to the buyer to cover the majority of closing costs, which end up to be an average of 2%-5% of the sale price of the home. However, sellers should be aware that they may have to pay some closing costs as well. The seller will have to pay any legal fees and fees associated with money going into escrow. New Jersey also requires the seller to pay a real estate transfer fee, which would be about $800 for a house with a sale price of $180,000.00.

 

Real Estate Agent Commission

Commission costs typically make up the majority of the seller’s extra expenses. Normally, the seller splits the commission with the buyer’s agent, typically about 6% of the final sales price. This 6% reflects all the hard work that goes into selling a home. The agent will market the home, hold open houses, show the home to interested buyers, and answer inquiries about the home. While this 6% commission can sometimes be negotiated, many experienced real estate agents will not negotiate their commission.

 

Home Repair and Maintenance

A lot goes into getting a home physically prepared to sell. According to Zillow, homeowners spend an average of $2,000.00 on home repairs and maintenance and sellers who enlist professional help can spend upwards of $5,000.00. These costs include putting up fresh, neutral paint in the interior, carpet and floor cleaning, lawn care and landscaping to increase curb appeal, and a full, thorough house cleaning before the buyers move in. You will also need to repair any items that are not working properly. If a buyer has a home inspection performed on the property, any findings will need to be addressed and repaired before sale.

 

Mortgage Payoff

The proceeds of selling your home will be used to pay off your mortgage. The money you receive is what is leftover once your remaining mortgage is paid and all other fees and costs are deducted. As an example, if you still owe $80,000 on your mortgage and you sell your home for $180,000, you will have $100,000 after paying off the remainder of your mortgage. Subtract $10,800 in commission fees and you will have $89,200—and this isn’t even counting any closing costs, home repairs, and preparing your home for sale.

There are a lot of costs that come with selling a home. Not all homeowners consider these costs before jumping into the real estate market. Veitengruber Law provides experienced real estate representation in New Jersey. We will make sure that you are prepared for these fees and expenses. We can also review and draft the complex legal contracts involved in real estate transactions. Our team can help you negotiate a deal that will keep as much money in your pocket as possible. Call us today at 732-852-7295 for your free consultation.