LBI Seller Closing Costs
Selling Your Home in the Long Beach Island NJ Real Estate Market
Understanding the true cost of selling a home on Long Beach Island is an important part of planning your move. Closing costs in the LBI NJ real estate market can vary depending on the type of property, local requirements, and the terms of the sale, but every seller benefits from having a clear picture of what to expect before listing. While many homeowners focus heavily on the sales price, the most important number is your net proceeds — the amount you actually walk away with after all expenses are deducted.
Below, you’ll find a detailed breakdown of the typical closing costs associated with selling a home on Long Beach Island, along with the fees, taxes, and expenses that may appear on your final settlement statement. By understanding your true net number upfront, you can make informed decisions, set realistic expectations, and confidently plan your next steps. Whether you’re selling a primary home, a vacation property, or a high‑value coastal investment, this information will help you clearly evaluate your bottom line.
Summary of Seller Closing Costs (LBI Real Estate Market)
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Real Estate Commission
Typically the largest seller expense; generally 4%–6% of the final sale price. -
New Jersey Real Estate Transfer Tax
A state‑mandated tax based on the sale price, required to transfer the deed. -
Mansion Tax (if applicable)
Applies to homes sold over $1 million, calculated as a percentage of the sale price. -
Attorney Fees
Standard legal fees for contract review, title coordination, and closing work. -
Certificate of Occupancy (CO)
Municipal inspection fees plus any required safety upgrades (smoke/CO detectors, fire extinguisher, etc.). -
Mortgage Payoff
Remaining loan balance, accrued interest up to closing, and a small lien discharge fee. -
Out‑of‑State Seller Withholding
A tax applied if the seller is not a New Jersey resident at the time of sale. -
Prorated Property Taxes
Seller is responsible for property taxes up to the closing date. -
Title Service Fees & Owner’s Title Insurance
Title work and the owner’s title policy, depending on local custom and contract terms. -
Recording Fees
Small county fees for recording the deed transfer and mortgage discharge. -
Buyer Credits or Incentives (optional)
Any negotiated credit toward buyer closing costs, repairs, or concessions. -
HOA or Condo Association Fees (if applicable)
Transfer fees, resale documents, and administrative charges for association‑managed properties.
Breakdown of Typical Seller Closing Costs on LBI
LBI New Jersey Real Estate
Real Estate Commission
The real estate commission is typically the largest expense for sellers. Commission rates commonly range between 4% and 6% of the sale price and are usually split between the listing agent and the buyer’s agent.
New Jersey Real Estate Transfer Tax
New Jersey charges a transfer tax on all property sales. This tax is calculated using a tiered system based on the final sale price and is required to record the deed and complete the transfer of ownership.
Mansion Tax (For Homes Over $1 Million)
Homes sold for more than $1 million are subject to New Jersey’s mansion tax. This tax is applied as a percentage of the sale price and increases in tiers as prices rise above the one‑million‑dollar threshold.
Attorney Fees
Sellers in New Jersey typically hire an attorney to assist with contract review, title preparation, and closing coordination. Attorney fees generally fall within a predictable range but can vary based on the complexity of the transaction.
Certificate of Occupancy (CO) & Municipal Requirements
Most towns on Long Beach Island require a Certificate of Occupancy or similar inspection before closing. Costs usually include:
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A standard inspection fee
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A small re‑inspection fee, if needed
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Any required safety upgrades such as smoke detectors, carbon monoxide detectors, or fire extinguishers
Each municipality has its own specific checklist and fee schedule.
Mortgage Payoff
If you have a mortgage on the property, the remaining loan balance will be paid off at closing. This amount includes:
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The outstanding principal
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Daily interest up to the closing date
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A small recording or discharge fee to release the lien
Out‑of‑State Seller Withholding
Sellers who do not live in New Jersey may be required to pay a withholding tax based on the total sale price. This is collected at closing and later reconciled when the seller files their New Jersey tax return.
Prorated Property Taxes
Property taxes are prorated as of the closing date. You are responsible only for the portion of taxes that cover the time you owned the home during the current billing cycle. Depending on the closing date, you may have to prepay taxes, or you will receive a refund from the buyer for the prepaid taxes.
Title Service Fees & Owner’s Title Insurance
Sellers typically cover certain title-related expenses, which may include:
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Title service or settlement fees
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An owner’s title insurance policy, depending on what is customary or negotiated in your transaction
These fees ensure that the title is clear and transferable to the buyer.
Recording Fees
A small recording fee is charged to officially record the transfer of your deed and the release of any existing mortgage.
Buyer Credits or Incentives (Optional)
Depending on market conditions, you may choose to offer a credit to the buyer — most commonly in the LBI real estate market, this is a credit toward repairs. While optional, these incentives can help secure a deal in certain situations.
HOA or Condo Association Fees (If Applicable)
If your property is part of a condominium association or HOA, there may be additional charges such as:
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Transfer fees
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Resale packages
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Processing fees
The exact amounts vary depending on the association.
What Long Beach Island Real Estate Seller Closing Costs Typically Total
When combined, commissions, taxes, legal fees, and other standard charges often total 7% to 10% of the final sale price. This can vary depending on price, property type, and negotiated terms, but the range provides a good starting point for planning.
Understanding Your Net Proceeds
The most important number when selling your home is not the sales price — it’s your net proceeds. By reviewing potential closing costs in advance, you can clearly understand how much you will walk away with and make confident decisions throughout the selling process.
Nathan Colmer
C: 609-290-4293 O: 609-492-1511 Email Me
Understanding closing costs can feel overwhelming, but you don’t have to navigate it alone. I’m here to break everything down clearly, answer your questions, and help you understand exactly what to expect at each step of the selling process. Together, we’ll review your estimated expenses, calculate your true net proceeds, and ensure you have a complete and accurate picture before your home hits the market. My goal is to provide clarity, confidence, and guidance so you can move forward knowing you’re making the best possible decisions for your sale on Long Beach Island.
