NJ Closing Costs for Home Buyers: What to Expect When Purchasing in New Jersey

Closing costs in New Jersey differ meaningfully from what Staten Island buyers are used to on the sell side in New York. Some costs are unique to New Jersey; others are familiar but structured differently than buyers might expect.

This post breaks down what NJ buyers typically pay at closing so there are no surprises at the table. For a side-by-side comparison of selling in Staten Island and buying in New Jersey, see our complete cost breakdown.

Pete Weinman is licensed in both New York and New Jersey. If you're selling in Staten Island and buying in New Jersey, he can represent you on both transactions — managing both sets of closing costs and both timelines under one roof.

NJ Mansion Tax

New Jersey imposes a 1% mansion tax on the purchase price of any residential property that sells for $1,000,000 or more. This is paid by the buyer at closing.

Unlike New York City — where the mansion tax has a graduated rate that increases for higher-priced properties — New Jersey's mansion tax is a flat 1% regardless of how far above $1 million the purchase price goes.

Title Insurance

Title insurance protects against any future claims against the title of the property. There are two policies:

• Owner's Policy: Protects you as the buyer. A one-time premium, typically 0.5%–0.6% of the purchase price.
• Lender's Policy: Protects your mortgage lender. Required if you're financing. Typically 0.3%–0.4% of the loan amount.

Both are purchased at closing. New Jersey title insurance rates are regulated by the state. Compare this to NY buyer closing costs.

Attorney Fees

In New Jersey, real estate agents typically prepare the initial purchase contract using standard forms. After signing, there is a three-business-day attorney review period during which your attorney reviews the contract and can negotiate modifications or cancel the deal. Attorney involvement continues through inspections, mortgage contingency, title, and closing.

Attorney fees for a standard NJ residential transaction typically run $1,500–$2,500. If Pete is representing you on both the Staten Island sale and the NJ purchase, discuss combined fee arrangements with his office. See our FAQ about attorney fees.

Home Inspection

A standard home inspection runs $400–$700 and is strongly recommended for every purchase. The inspector evaluates the structural and mechanical condition of the home. Issues found become the basis for negotiating repairs or credits with the seller during the attorney review or inspection contingency period.

Well and Septic Inspections

Many NJ homes — especially in Monmouth, Morris, Somerset, and Hunterdon Counties — use private wells and septic systems rather than public water and sewer. If the home has either:

• Well water test: $200–$400. Tests for bacteria, nitrates, and other contaminants. Required by most NJ mortgage lenders.
• Septic inspection: $300–$600. A licensed contractor pumps and evaluates the system. A failed drain field can cost $15,000–$40,000 or more to replace.

Never skip these inspections. They are standard in NJ transactions and your attorney will ensure they are included in your inspection contingency. Learn more about well water and septic systems.

Radon Testing

New Jersey has elevated radon levels in many areas, particularly in the northwestern counties. Testing costs $150–$300. If elevated levels are found, mitigation systems typically cost $800–$2,000 and are almost always negotiable for the seller to address before closing.

Mortgage Costs

If you're financing your NJ purchase, your lender will charge origination fees (0.5%–1.5% of the loan), an appraisal ($500–$800), and a credit report fee ($50–$100). You'll also prepay several months of property taxes and homeowner's insurance into escrow at closing.

Recording Fees

The county records the deed and mortgage. Recording fees run $100–$300 and are paid by the buyer at closing.

Total NJ Buyer Closing Cost Estimate

For a $650,000 NJ home purchase with a $520,000 mortgage (below the $1M mansion tax threshold):

NJ mansion tax would add $6,500 on a $650,000 purchase — though the mansion tax only applies to purchases at or above $1 million.

Don't forget to budget for New Jersey's high property taxes, which are often the largest recurring cost of homeownership in the state.

Contact Pete today: Call 718-442-2010 | Text 718-957-8121 | Email: Weinman@StatenIslandLaw.com

Legal Disclaimer: The information provided on this blog is for general informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by reading or commenting on these posts. The content may not reflect the most current legal developments and may not apply to your specific situation. For legal advice concerning your individual circumstances, please consult with a licensed attorney. Do not rely on information from this blog as a substitute for professional legal counsel. Past results described in blog posts do not guarantee similar outcomes in future cases.