It can take a considerable amount of time and energy to locate a home in New Jersey that suits your desires and budget, and this doesn’t include physically relocating your family and belongings. But in addition to these things you must also consider the closing costs in Bergen county. While most people focus primarily on the down payment, you should also consider the additional fees which are involved in these real estate transactions.
Bergen County Closing Costs
This particular county has some of the largest closing costs in the entire state of New Jersey. This is because its homes are luxurious and exclusive, which results in larger property taxes, insurance costs and legal fees. It isn’t unusual for the closing costs alone to be more than $10,000, and when doing your estimates you should plan for these costs to make up about 2.2 percent of the median price of the house.
Title Insurance And Search
In New Jersey it is mandatory for a title search and insurance to be performed. The purpose of the title search is to evaluate the property’s historical records to make sure the owner is legally authorized to sell the property. In some cases a piece of real estate can be dually owned, which can cause issues during a sale, and the title search also ensures that the house is located on the plot of land where it should be. Title insurance is a payment that protects both parties from disputes involving the property that occur once the title search has been completed. It usually costs from $250 to $500.
Appraisal Fee
This fee will be necessary for those who are buying their home with the aid of a mortgage loan. The lender wants to make sure that the home is worth what they’re lending you to pay for it. The appraisal will evaluate the home’s condition in comparison to other properties in the area, and the fee will usually be about $400.
Mansion Tax
This tax will be applied to those who are buying homes in Bergen County which are valued at $1 million or more. The rate will be 1 percent of the value of the home or $10,000 for a property that is appraised at $1 million.
Home Inspection
Although home inspections are not mandatory in New Jersey, they are highly recommended; especially when you consider the high costs that you will pay for the home itself as well as the closing fees. This procedure is of great importance when buying older properties, as they are subject to the ravages of time and may have foundational or structural problems that will need to be repaired. Identifying these problems can allow you to approach the seller to renegotiate the cost, so that you can factor in the amount you will have to pay for repairs. Closing costs can grow rapidly, which is why it is essential to hire a Bergen County real estate agent who is both experienced and reliable.
