Nathan Colmer | The Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
Read information about closing costs in the LBI NJ real estate market and the costs of selling a home on Long Beach Island New Jersey. It is important to focus on the total net proceeds when selling a home rather than the gross sales price. The information below can help to determine your actually true net number.
When selling a home in the LBI real estate market, it is important to understand the costs of selling a property. While every real estate transaction is different, there are some general closing costs that all sellers should be aware of. Please note that I have provide some very rough numbers associated with each cost. It is important that as a seller you verify these costs as they relate to a transaction as they may be different depending on your specific situation, price range, etc.
This is usually the largest of the expenses incurred when selling a house. The brokerage fee is paid by the seller to the listing agent who shares that fee with the selling agent. While all commissions in New Jersey are negotiable, most agents on Long Beach Island will charge between 5% and 6%.
5%-6% of the total sales price
While the use of an attorney is not required, it is strongly recommended for any transaction in the LBI real estate market. An attorney will review the contract documents, handle any associated negotiations and help to coordinate the closing of the transaction.
This cost will vary depending on the attorney and the level of time and service.
This is a sliding scale based on the sale price of the house. For general estimation purposes a seller can assume this tax will equate to a little less than 1% of the sale price. There are discounts in place for senior citizens.
The rates are: $4.00/$1,000 on the first $150,000, $6.70/$1,000 between $150,000-$200,000, and $7.80/$1,000 over $200,000. Senior Citizen rates are: $1.00/$1,000 to $150,000,and $2.50/$1,000 over $150,000.
This tax applies only to sellers who reside outside of New Jersey. This tax is applied to the sale price of the home and is due at closing.
2% of the total sales price for the home
In most transactions on Long Beach Island the seller is responsible for obtaining the resale certificate of occupancy. The buyer will provide the seller with a survey and elevation certificate to facilitate this obligation.
$50.00 for the physical inspection and $25.00 for any re-inspections
$150.00-$250.00 for the installation of any smoke detectors, CO2 detectors, fire extinguishers, etc that may be needed.
In any transaction there will always be some additional costs. For example, Long Beach Township requires a seller to file a deed restriction if one is not already in place. It is always a good idea to budget a few extra dollars for these expenses.
This requirement is unique to Surf City and Long Beach Twp. In Surf City and Long Beach Twp, any home is required to have a curb installed prior to the resale CO being released. This requirement is usually the responsibility of the seller. The curb must be made of poured concrete or solid block. This applies to not only re-sales but also to new construction and substantial renovations.