Closing Costs in New York vs. New Jersey: Side by Side
Selling in Staten Island and buying in New Jersey?
Or the other way around?
Either move means dealing with two sets of closing costs. Two different sets of rules. Two different ways things get itemized at the closing table.
Most sellers and buyers do not see the differences clearly until the final settlement statement lands in their inbox.
I am Allison Mireau with Real Connect Group. Let me lay it out plainly.
One note up front. I am not a CPA, attorney, or lender. Specific dollar amounts vary by deal, lender, attorney, and town. Talk to the right professional for your exact numbers. I can refer trusted ones on both sides of the bridge.
What I can do is show you the structure, the categories, and where the real differences live.
What "closing costs" actually means
Closing costs are the fees and taxes that come due when a real estate transaction closes.
Some are paid by the seller. Some by the buyer. Some are split. Most are non-negotiable. A few can be reduced if you plan ahead.
In both New York and New Jersey, closing costs typically run somewhere between 2 and 6 percent of the home's sale price. The exact mix is where the two states diverge.
What sellers pay
Let me walk through both sides.
In New York (Staten Island)
Selling a home in SI usually involves these costs.
Real estate commission. Negotiated upfront, typically split between the listing agent and the buyer's agent.
NY State transfer tax. A fixed rate applied to the sale price.
NYC transfer tax. Additional, on top of the state tax. Rate depends on whether the sale crosses certain thresholds.
Attorney fees. New York transactions require attorneys on both sides.
Title-related fees. Some are paid by the seller, some by the buyer, depending on the deal.
Mortgage payoff costs. If you have a mortgage, the lender may charge a small payoff or recording fee.
Miscellaneous. Smoke detector certifications, water meter readings, prorated property taxes.
For most Staten Island sellers, total closing costs land somewhere between 6 and 10 percent of sale price when you include commission. Without commission, the seller-paid taxes and fees usually run 2 to 4 percent.
In New Jersey
Selling a home in NJ has its own pattern.
Real estate commission. Same structure, negotiated upfront.
NJ Realty Transfer Fee. A statewide tax tied to sale price. The fee scales up at higher price points.
Mansion tax exception. This is a buyer's tax in NJ, not a seller's, but it shows up at closing.
Attorney fees. NJ contracts go through attorney review. Both sides usually have attorneys.
Title-related fees. Similar to NY but handled differently in practice.
Mortgage payoff costs. Same idea as NY.
Miscellaneous. Certificate of occupancy in some towns, smoke and CO certifications, prorated taxes.
For most NJ sellers, the structure is similar in total range, but the specific line items differ. Some towns require a Certificate of Occupancy or municipal inspection before closing, which can add fees and time.
What buyers pay
Now the other side of the table.
Buying in New York (Staten Island)
A buyer in SI typically pays.
Down payment. Not technically a closing cost, but the biggest cash outlay.
Mortgage recording tax. A NY-specific tax that can run a meaningful percentage of the loan amount.
Mansion tax. Applies to home purchases over a certain price threshold.
Attorney fees.
Title insurance. Both lender's and owner's policies.
Lender fees. Origination, appraisal, credit check, application fees.
Prepaid items. Property tax escrow, homeowners insurance, prorated interest.
Inspection fees. Paid out of pocket before closing.
The mortgage recording tax in New York is one of the biggest line items buyers do not anticipate. It can run thousands more than buyers expect, particularly on larger loans.
Total NY buyer closing costs typically run 3 to 5 percent of the purchase price, sometimes more on financed deals.
Buying in New Jersey
A buyer in NJ typically pays.
Down payment.
Mansion tax. NJ buyers pay this on homes over $1 million.
Attorney fees. Often higher than the NY equivalent because of attorney review.
Title insurance.
Lender fees.
Prepaid items. Tax escrow, insurance, prorated interest.
Inspection fees.
CO and municipal inspection fees. Depending on the town.
NJ does not have the mortgage recording tax that NY has. That alone can save buyers thousands compared to a NY purchase of similar size.
Total NJ buyer closing costs typically run 2 to 5 percent of the purchase price.
Where the real differences hit
A few patterns worth knowing.
Buyers usually pay less in NJ
Largely because of the missing mortgage recording tax. On a $500,000 loan, that single line item can be a meaningful four-figure difference.
Sellers pay more transfer fees in NJ at higher prices
The NJ Realty Transfer Fee scales up at higher price points. A seller offloading a high-end home in NJ may pay more in transfer taxes than the equivalent SI seller.
Attorney involvement is heavier in NJ
Attorney review is standard. Attorneys are involved earlier in NJ than in NY. That means slightly higher legal fees, but also stronger protection in negotiation.
Municipal inspections in NJ can add cost and time
Many NJ townships require a Certificate of Occupancy or a similar municipal inspection before closing. NY does not have this universally.
This can mean repair requirements or fees right before closing. Plan for it.
Property taxes work differently at closing
NY and NJ both prorate property taxes at closing, but the underlying tax structure varies enough that the math at the table can look very different. Higher NJ taxes often mean a larger proration owed by the buyer at closing.
Why this matters for a SI to NJ move
If you are selling in Staten Island and buying in New Jersey, the closing cost math on both sides shapes your real bottom line.
A seller might net less from the SI sale than expected after NY transfer taxes. A buyer might owe less than expected at the NJ closing because NJ has lower buyer-side taxes.
Knowing both numbers in advance lets you plan honestly.
Sellers who skip this step end up surprised at the closing table. Sellers who plan it net more, sleep better, and move with clarity.
What I tell clients to do before closing
Three honest steps.
1. Get a seller net sheet for the SI side
A net sheet shows estimated proceeds after all costs. A good agent prepares one before you list.
You should know roughly what your home will net before you make any decisions about your next purchase.
2. Get a buyer cost estimate for the NJ side
Talk to your NJ lender and attorney. Ask for a written estimate of total closing costs.
This number shapes your real budget. Not just the down payment. The full cash needed at closing.
3. Coordinate timelines
If you are buying and selling at the same time, the timing of both closings matters. The order, the cash flow, the recording dates, all of it.
A Realtor working both sides keeps it clean. A Realtor working only one side misses things.
What I will not pretend to advise on
I am not a CPA, attorney, or lender. The numbers in this post are general patterns, not specific to your deal.
For your exact closing costs, talk to your attorney, your lender, and your tax professional. I can refer trusted ones on both sides of the bridge.
All of our work follows the Fair Housing Act, RESPA, the NAR Code of Ethics, and the real estate commission guidelines for New York and New Jersey.
Before you close
Know what the closing table actually looks like before you sit down at it.
That is what I do for clients on both sides of the bridge, every month.
Have questions about selling your home or relocating? Reach out to Allison today.
Call: 646.266.0188 Email: [email protected] Website: www.rconnectrealty.com
Contact Allison today to sell your home in SI and plan your next move with eyes open.
