Selling a home in NJ? Extra expenses you should know about
Congrats — you just accepted an offer on your home for $300,000.
But how much of that money will you actually see?
According to an analysis from real estate database Zillow, the average homeowner in the U.S. spends more than $18,000 in extra costs associated with selling a home.
The company's report describes some of these costs as "hidden," but as long as your real estate agent is doing their job well, you should have a good idea of most of the costs you'll pay in the final days or weeks of the home-selling process.
Closing costs — from legal expenses to the real estate transfer fee — make up the majority of these extra expenses and could cut a buyer's share by a few percentage points.
The transfer fee varies based on the sales price of the home — approximately $1,715 on a $300,000 sale in New Jersey. Several states do not impose these taxes.
Closing costs would also include commissions for involved real estate agencies.
"Most realtors will sit down with sellers before they even list their home, discuss the entire process with them," said Christian Schlueter, 2018 President of New Jersey Realtors and a broker with RE/MAX At Barnegat Bay of Toms River. "Most of us will do what's called a net sheet, where we break down for the sellers what their anticipated costs should be."
Schlueter noted real estate commissions can be negotiated — the "standard 6 percent" isn't set in stone.
Beyond closing costs, sellers are also faced with expenses related to preparing a home for market. According to Zillow, sellers who hire professional help spend close to $5,000 covering basic projects such as painting, cleaning and lawn care.
Some costs you may not see coming include those related to last-minute emergency repairs if an inspection uncovers a major problem, or if the buyer asks for a concession toward closing costs.