Yes, Jtolino - the seller pays this fee, referred to as the NJ State Tansfer Fee ( the "RTF"). As you have found out by now, it is based on the purchase price of the home.
The good news is, if you're a senior citizen- you get a discount!
Here's a link to help you calculate the fee
By the way, if the home is selling for over 1 million, the buyers get to pay a transfer fee/tax, too (lucky them!). They have to pay 1% of the purchase price!
Good luck with your sale!
Prudential NJ Properties
Web Reference: http://www.debbierosesells.com