Nathan Colmer | Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
Learn about LBI real estate closing costs and buying a home on Long Beach Island. Apart from the purchase price of a home on LBI, it is important to understand the additional costs such as flood insurance, attorney fees and additional costs you may incur.
Once you have selected the right house to buy, you have to take into account what the additional fees will be with the purchase and or sale of real estate on Long Beach Island NJ. There are different costs associated with buyers and sellers in the LBI real estate market and it is important to understand what these costs are BEFORE you enter into a contract. Closing costs will vary greatly depending on the deal and the individual but the information below should help give you a general outline of what to expect. Note that while I provide an estimate of the cost associated with each line item, the actual cost will vary depending on market conditions and who you decide to hire.
An attorney is not required to complete a transaction in the LBI real estate market but it is certainly recommended. An attorney will review the contract with you and protect your rights in the transaction.
A home inspection in the LBI real estate market will help to uncover hidden defects in a house. Home inspections are especially important in the wake of Hurricane Sandy as they can uncover facts about the storm's impact on a home
Most townships on Long Beach Island will require a new survey and flood elevation certificate prior to issuing the resale Certificate of Occupancy. These will also come in handy when looking for a flood insurance quote or when making any improvements to the property.
Lender Fees: $1,000-$1,200
Appraisal Fees: $350-$500
Lender fees are especially difficult to anticipate and will greatly depend on the type of mortgage, the lending institution and the interest rate. I have included a very rough number but it is best to speak with your lender to obtain exact pricing.
Fees imposed on the sale of a property will depend on the town and the style of home purchased. Fees will include the recording of the deed, changing water and sewer service t your name and other similar fees.
A high estimate to use is 0.5% of the purchase price to cover all fees.
Title insurance is used to protect the title of a home from defects such as past judgments, liens or other defects on the clear title of a home. The cost of title insurance will vary depending on the price of a home.
Utility proration reimburse the seller for expenses they have prepaid when they will not have owned the home. Common examples are property taxes and water/sewer charges.
1% of the Purchase Price
Example: If the sale price of a single family home is $1,200,000 the mansion tax due is $12,000.
If you are purchasing a property over $1,000,000 the State of New Jersey will impose the "mansion tax". This is a tax, paid to the state by the buyer, equal to 1% of the TOTAL purchase price.
Below is a rough outline of what a seller can expect to pay in the LBI real estate market. If you have a house to sell on Long Beach Island you can request a market evaluation of your home or view my detailed page regarding seller's closing costs in the LBI real estate market.
If you are selling a property on Long Beach Island NJ, there are fees that will be imposed as well. As is true when buying LBI real estate, the fees will vary when you are planning on selling real estate on Long Beach Island New Jersey. A few expenses you should count on are:
New Jersey Transfer Tax is a sliding scale based on the total sale price of the property. I advise sellers to anticipate about 1% of their sale price to be paid to the State of New Jersey when selling LBI real estate. If you are a senior citizen, the transfer tax is considerably lower. If you are not a resident of New Jersey, meaning your primary residence is outside the state, there is a 2% tax based on the sale price. Seller's typically will provide for the Certificate of Occupancy as well which is typically around $150-$200.