Buying or selling a home in Montvale comes with more than the price on your contract. Closing costs can surprise you if you have not seen a full estimate. Whether you are planning to sell this season or you are in the early stages of buying, knowing who pays what and how much to budget will save you stress. In this guide, you will learn what closing costs include in New Jersey, typical ranges for buyers and sellers in Montvale, how taxes and utilities are prorated, and smart ways to negotiate. Let’s dive in.
Closing costs in New Jersey: what they include
Closing costs are the non‑purchase‑price fees due at settlement. They can include lender charges, title and recording fees, inspections, attorney fees, taxes, escrows for taxes and insurance, and prorations for items like property taxes and HOA dues.
In New Jersey, custom often looks like this:
- Sellers typically pay the real estate commission, the New Jersey Realty Transfer Fee, their mortgage payoff and lien releases, and any municipal certificates tied to the sale.
- Buyers typically pay loan-related costs, appraisal and inspections, lender and owner’s title policies, recording fees for the mortgage, and initial escrow deposits.
Many items are negotiable. Your contract and attorney will set final terms, and the lender will provide a Closing Disclosure at least three business days before closing so you can review details.
Seller costs in Montvale: what to expect
Real estate commission
Commission is typically negotiated and is often around 5 to 6 percent of the sale price in many markets. The total commission is usually split between the listing and buyer brokers. Discuss the exact rate and structure with your agent so it aligns with your goals.
New Jersey Realty Transfer Fee
The Realty Transfer Fee is a state transfer fee generally paid by the seller. It uses a graduated schedule based on the sale price. Because the schedule can change, confirm the current brackets and your exact amount with the New Jersey Division of Taxation or your closing attorney before you set final net proceeds.
Attorney and settlement fees
In New Jersey, each side commonly has an attorney. Seller legal fees vary with complexity. Basic transactions often fall under about $1,500, while more complex matters can be higher. Your attorney or title company will also coordinate payoff letters and lien releases.
Mortgage payoff, liens, and municipal items
Sellers pay off their existing mortgage and any judgment liens. If the borough or county identifies unpaid municipal charges or code issues, these must be cleared or escrowed at closing. Title companies will run searches to confirm there are no unresolved liens.
Repairs and required certificates
New Jersey sellers generally complete a Seller’s Property Condition Disclosure Statement, and material defects must be disclosed. You should also budget for required certificates, such as smoke detector and carbon monoxide compliance. Montvale may have additional borough requirements, like a certificate of occupancy or health approvals for septic or well. Check with Montvale’s municipal office early so there are no last-minute delays.
Prorations and association items
Property taxes are prorated through the date of closing. If you paid taxes beyond that date, the buyer typically credits you. If you are selling a condo or a home in an HOA, plan for an estoppel or resale package fee. Associations set their own pricing, so confirm the exact cost and timing.
Buyer costs in Montvale: what to expect
Loan and lender fees
If you finance, expect lender charges such as an origination fee that may run around 0.5 to 1 percent of the loan amount, plus processing or underwriting fees. You may also choose to pay discount points to reduce your rate. Your Loan Estimate will spell out these costs early in the process.
Appraisal and inspections
Most loans require an appraisal. Typical appraisal fees often range from about $350 to $700 depending on the property. A general home inspection often runs about $300 to $600. Many buyers also add radon, termite, sewer scope, or lead-based paint checks as needed. These specialist inspections have separate fees.
Title insurance and settlement charges
Your lender will require a lender’s title policy. An owner’s title insurance policy is optional but strongly recommended since it protects your equity. Premiums are based on price and are paid once at closing. You will also see title search and settlement or closing agent fees. Ask your title company for a written estimate so you can budget accurately.
Recording, survey, and miscellaneous
Bergen County recording fees apply for the deed and mortgage. These are modest compared to the home price but should be in your budget. A survey may be required by your lender, especially for single‑family properties, and can range from about $300 to over $1,000 depending on lot size and complexity. Expect small line items for wires, overnight deliveries, and document prep.
Escrows, insurance, and PMI
Most lenders collect several months of property taxes and your first year of homeowner’s insurance at closing. If your down payment is under 20 percent on a conventional loan, you may have private mortgage insurance. The cost depends on your loan type and down payment.
HOA or condo buyer fees
If you are buying in an association community, you may see application or transfer fees. Get the association’s fee list early to avoid surprises.
Montvale and Bergen County logistics to plan for
Property tax proration and billing
New Jersey property taxes are often billed quarterly. Typical due dates are Feb 1, May 1, Aug 1, and Nov 1. Taxes are prorated through the closing date so each party pays their share for that period. Your contract will state the exact proration method, and your attorney or title company will calculate the daily amount on your settlement statement.
Utilities and municipal charges
Water, sewer, and trash are usually prorated or adjusted at closing. Billing cycles vary between monthly and quarterly. Ask for recent Montvale utility bills during due diligence so you can confirm balances and proration timing.
Flood risk, septic, and health items
While Montvale is not broadly coastal, flood risk is property‑specific. If a property lies in a mapped flood zone and you have a federally backed mortgage, flood insurance may be required. For homes with a septic system or private well, lenders and local health rules may require inspections or certifications. Check with the Bergen County Health Department or the Montvale Board of Health for current requirements.
Closing timeline and funds
Most financed purchases close within about 30 to 60 days. Cash deals can be faster if title is clear. Plan to deliver your final funds by wire or certified funds as directed by the closing agent. Confirm wiring instructions by phone with the title company to avoid fraud.
Smart negotiation moves that work
- Owner’s title policy: In New Jersey, who pays for the owner’s policy is negotiable. A seller credit for the policy can help a buyer while preserving the seller’s price target.
- Seller concessions: Within lender limits, a seller can credit a portion of buyer closing costs. This can keep monthly payments workable without lowering price.
- Price vs credit: Sometimes a credit at closing is more valuable than a price cut, especially if it covers upfront cash. Your lender can model the impact for you.
- Timing and prep: Order condo or HOA documents early. Confirm the Realty Transfer Fee and recording fees before you finalize price. Early estimates keep your net proceeds or cash-to-close on track.
What to verify before closing
Use this quick checklist to stay ahead of your closing:
- Confirm who pays the New Jersey Realty Transfer Fee and check the current schedule with the Division of Taxation.
- Get written estimates for lender fees on your Loan Estimate, then review the Closing Disclosure at least three business days before closing.
- Request a quote from a Bergen County title company for title search, settlement fee, and title insurance premiums.
- Sellers: request mortgage payoff statements and verify any lien clearance steps in advance.
- Schedule inspections early. Add specialist checks if the property has septic, well, or if you want radon and termite coverage.
- Ask how prorations will be handled for property taxes, utilities, and HOA dues. Review these line items on the settlement statement.
- Confirm how you will deliver funds on closing day and who pays wire or courier fees.
Next steps for Montvale buyers and sellers
Planning early is the best way to protect your bottom line at closing. Build your budget with written estimates, verify the state and county fees, and use negotiation levers that fit your financing and timing. A local team that handles Bergen County transactions every week can catch issues before they escalate and keep your closing on schedule.
If you want clear numbers and a step-by-step plan tailored to your property, reach out to Jacqueline Vasquez. Jacque brings investor-grade analysis, disciplined negotiation, and bilingual service for buyers, sellers, and estate transactions across Montvale and greater Bergen County.
FAQs
What closing costs do sellers pay in Montvale?
- Sellers commonly pay the real estate commission, the New Jersey Realty Transfer Fee, their mortgage payoff and any lien releases, required municipal certificates, prorated taxes through the closing date, and HOA resale or estoppel fees if applicable.
What closing costs do buyers pay in Montvale?
- Buyers typically pay lender fees, the appraisal, inspections, title search and title insurance, deed and mortgage recording fees, survey if required, homeowner’s insurance, initial escrow deposits, and small courier or wire fees.
How are New Jersey property taxes prorated at closing?
- Taxes are usually prorated through the date of closing based on quarterly billing, with typical due dates in February, May, August, and November. The attorney or title company calculates the exact daily amount per the contract.
What is the New Jersey Realty Transfer Fee and who pays it?
- The Realty Transfer Fee is a state fee calculated on a graduated schedule based on the sale price. It is typically paid by the seller in New Jersey unless the contract states otherwise.
Can a Montvale seller pay part of a buyer’s closing costs?
- Yes. Seller concessions are common within lender limits. A seller credit can cover some buyer costs or the owner’s title policy if negotiated in the contract.
How long does a financed home purchase take to close in Montvale?
- Most financed transactions close in about 30 to 60 days, depending on inspections, appraisal, loan approval, and title clearance. Cash purchases can close faster if title is ready.
Do I need an owner’s title insurance policy in New Jersey?
- The owner’s policy is optional but strongly recommended because it protects your equity against covered title defects. Who pays is negotiable between buyer and seller.
What inspections are common for Montvale homes?
- Most buyers order a general home inspection plus radon and termite checks. Some add a sewer scope or lead-based paint test. Septic and well properties may require specific health inspections.
Are there Montvale-specific certificates needed to close?
- Expect smoke detector and carbon monoxide compliance, and check with Montvale’s municipal offices for any certificate of occupancy or local health approvals. Requirements can vary by property type.