If you are the seller, your actual closing costs are considered lower than the buyers; however, there are many other things to be aware if.
First off, there is the commission to the listing and selling agencies on the sale of your home usually around 5-6% if you are using an agent. However, behind every successful closing there is usually a successful agent holding everything together.
Then on the HUD-1 Closing Statement there is the NJ Realty Transfer Tax which is roughly about 1 percent of your sales price. For sales prices over $1,000,000, the buyer also pays an equal transfer tax sometimes referred to as the McMansion Tax.
The pro-rated real taxes could mean that you owe tax compensation to the buyer at closing depending on what you close in.
The cost of the Continued Certificate of Occupancy (in some towns) and Smoke Detector/Carbon Certification (in all towns) can run anywhere from $50 to $200.
The cost of releasing your mortgage and proof that it is paid up up to $150
The cost of your attorney on the seller's side should be a little less than the buyer's about $900-$1,000 on the average.
If you are giving a seller's concession to help with the buyer's closing cost, that could also be around 3% of the buyer's mortgage (sometimes 6%) but you should really look at the gross sales price as the amount you will pay the NJ Realty Transfer tax on. The net figure is what you are actually receiving for your home.
If you are short selling your home, the city certs are the cost of the buyer and the commission may be picked up by the shorted bank depending on your financial situation.
There are other costs depending on the situation but these are the basic ones for the seller.
The buyer has to pay the title search and insurance fees, ($2,500-$3,500 on average) homeowner's insurance, mortgage company fees, home inspection fees and attorney fees usually around $1,000-$1200.
If you need any other info regarding closing costs, a realtor or attorney will be able to help you. Call me if you need any further help. 201-247-5768. I'll be happy to help as I handle the Essex county area.
RE/MAX VILLAGE SQUARE
516 Valley Rd
Upper Montclair, NJ