THE ULTIMATE LBI SELLERS GUIDE

Everything You Need to Know About Selling a Home on Long Beach Island

Buy LBI | Nathan Colmer | LBI Real Estate

Seller Closing Costs LBI NJ Real Estate

When selling a home on Long Beach Island, it’s essential to focus on your net proceeds rather than just the gross sales price. While every transaction is unique, there are common closing costs that all sellers should be aware of. Below, you’ll find an overview of typical expenses along with rough estimates to help you determine your true net number. Keep in mind that these figures may vary based on your specific situation, price range, and transaction details.

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Brokerage Fee

5%-6% of the total sales price

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%.

Attorney Fee

$1,000-$1,500

This cost will vary depending on the attorney and the level of time and service.

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.

NJ Transfer Tax

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 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.

Out of State Residency Tax

2% of the total sales price for the home

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.

Certificate of Occupancy

$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 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.

Misc. Expenses

$500.00

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.

Curb Installation

$2,200.00-$2,500.00

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.