Westfield Closing Costs: Buyer and Seller Breakdown

You have a lot riding on your closing day, and surprise fees should not be one of them. Whether you are buying your first home in Westfield or selling a long‑time residence, understanding closing costs helps you plan with confidence. In this guide, you will learn what typical fees look like in 07090, who usually pays them in New Jersey, and how to build a realistic cash‑to‑close or seller net estimate. Let’s dive in.

What closing costs cover in Westfield

Closing costs are the non‑price expenses that buyer or seller pay to complete a home sale. They can include lender fees, appraisal, title search and insurance, closing and recording charges, attorney fees, inspections, and state or local transfer fees. In New Jersey, it is common for both sides to have attorneys, and many items are negotiable. Buyers typically cover lender and appraisal fees. Sellers typically cover brokerage commission and the New Jersey Realty Transfer Fee. If you are financing, your lender must give you a Loan Estimate early and a Closing Disclosure at least 3 business days before settlement so you can review final numbers.

Buyer closing costs in Westfield 07090

Lender fees and appraisal

• Loan application or origination fees can be a flat amount or a percentage of the loan. Origination points, if charged, often run 0.5 to 1.0 percent of the loan amount.
• Appraisal typically ranges from $300 to $800 depending on property size and type.
• Credit report and underwriting fees are usually small fixed charges, often $25 to $100.
• Discount points are optional. One point equals 1 percent of the loan amount and can lower your rate if you choose to pay it.

Title search, title insurance, and closing services

• Title search and settlement or closing fees often fall in the $300 to $1,000 range.
• Lender’s title insurance is usually required by your mortgage company and is typically paid by the buyer.
• The owner’s title insurance policy is negotiable in New Jersey. Who pays can vary by local custom and what is written in your contract.
• Title insurance premium rates are calculated on a sliding scale. Your attorney or title company will quote the exact premium based on the purchase price.

Recording and filing fees

• Union County records your deed and, if applicable, your mortgage. Recording fees are typically modest. Your attorney or title company will confirm the current county schedule and add exact recording amounts to your estimate.

Prepaids and escrow setup

• You will prepay the first year of homeowners insurance at or before closing.
• Lenders often collect an initial escrow for property taxes and, if applicable, mortgage insurance. Expect several months of taxes and insurance to be set aside.
• You will also pay per‑diem mortgage interest from your closing date to the first payment date.

Inspections and survey

• General home inspection often runs $300 to $800. Specialized inspections, such as termite, sewer scope, or lead paint, are additional if needed.
• A survey may be required or recommended based on the property and lender. The contract will specify who orders and pays for it.

Attorney fees

• Attorney involvement is customary in New Jersey. Buyer attorney fees often range from $800 to $2,500 depending on complexity.

Typical buyer total

• A useful rule of thumb for Westfield buyers is to budget about 2 to 5 percent of the purchase price for closing costs, not including your down payment. The exact figure depends on your loan program, title premiums tied to price, prepaids, and timing.

Seller closing costs in Westfield 07090

Brokerage commission

• Commission is usually the largest seller expense, commonly negotiated in the 5 to 6 percent range of the sale price. The total is typically split between the listing and buyer’s brokers.

New Jersey Realty Transfer Fee

• New Jersey charges a state realty transfer fee calculated on the sale price with a graduated schedule. It is usually paid by the seller at closing unless the contract states otherwise. Your attorney or title company will compute the exact amount based on the state’s current schedule.

Title, closing, and attorney

• Sellers may share or cover certain title or settlement fees based on local custom and contract terms. In some transactions the seller pays for the owner’s title policy, in others the buyer does. Clarify in your contract.
• Seller attorney fees often range from $800 to $2,500 depending on complexity.

Municipal items, payoffs, and prorations

• Any mortgage, lien, or judgment on the property is paid off at closing.
• Property taxes are prorated to the closing date. If you have prepaid taxes beyond closing, you will receive a credit on the settlement statement.
• Municipal certificates and any outstanding municipal or utility balances are cleared or credited so the buyer receives clear title.

Typical seller total

• Including commission, most sellers should plan for total closing costs in the 6 to 10 percent range of the sale price, before accounting for mortgage payoff or liens. Your number can be lower if commission is reduced, or higher if you agree to repairs or concessions.

Who pays what in New Jersey

New Jersey customs are clear but still negotiable. Buyers usually cover lender‑related charges, appraisal, and the lender’s title policy. Sellers usually cover brokerage commission and the New Jersey Realty Transfer Fee. Owner’s title policy, survey, certain closing fees, and HOA transfer charges are negotiable. Always confirm “who pays what” in your purchase contract and through your attorney.

How to estimate your numbers

Buyer: build a cash‑to‑close estimate

1. Start with your down payment. Subtract your loan amount from the purchase price.
2. Add lender fees and discount points. Use your Loan Estimate as a guide.
3. Add appraisal, inspection, and any survey. Some are paid upfront, others at closing.
4. Add title services and the lender’s title insurance premium. Ask your attorney or title company for a quote.
5. Add prepaids and escrow deposits for taxes and insurance, plus per‑diem interest.
6. Include county recording charges for the deed and mortgage.
7. Subtract any seller credits you negotiated in the contract. The result is your estimated cash‑to‑close.

Quick tip: Request an updated estimate from your lender and attorney after attorney review, after appraisal, and again the week before closing so you are ready for final certified funds or a verified wire.

Seller: build a simple net sheet

1. Start with your contract sale price.
2. Subtract the brokerage commission percentage you negotiated.
3. Subtract your mortgage payoff and any home equity loan payoff. Ask your lender for a current payoff quote including per‑diem interest.
4. Subtract the New Jersey Realty Transfer Fee. Your attorney or title company will calculate the exact amount from the state schedule.
5. Subtract attorney fees, any title or settlement charges you are paying, municipal certificates, and expected tax prorations or credits to the buyer.
6. Subtract agreed repairs, credits, or a home warranty if you are providing one.
7. The result is your estimated net proceeds.

Illustrative examples

Buyer example

• Purchase price: $700,000
• Down payment at 20 percent: $140,000
• Estimated buyer closing costs at 3 percent: $21,000
• Estimated cash‑to‑close: $161,000, plus any additional escrowed taxes or insurance not captured in the estimate above

This scenario is a simple illustration. Your Loan Estimate and Closing Disclosure will show your exact numbers.

Seller example

• Sale price: $700,000
• Commission at 5.5 percent: $38,500
• New Jersey Realty Transfer Fee: calculated from the state’s graduated schedule, added by your attorney or title company
• Add seller attorney and any title or municipal fees, then subtract your mortgage payoff to determine net proceeds

These are placeholders to show the structure. Your final settlement statement will provide precise figures before closing.

Timeline and tips to avoid surprises

• Get pre‑approved early and request a Loan Estimate from your lender. Ask for an updated estimate after appraisal and again just before closing.
• Ask your attorney or title company for a good‑faith estimate of title premiums, closing fees, and county recording costs.
• Review the Closing Disclosure carefully. Buyers receive it at least 3 business days before closing. Use that window to ask questions about any unfamiliar line items.
• Verify wire instructions by phone using a known, trusted number for the settlement company or attorney. Wire fraud is common, and verification helps protect your funds.
• Sellers should request mortgage payoff statements early and confirm any municipal requirements, such as tax searches or utility certifications, to keep the timeline on track.
• Negotiate thoughtfully. Items like owner’s title policy, HOA transfer fees, or repair credits can be traded to reach agreement.

Local items to confirm in 07090

• New Jersey Realty Transfer Fee. Confirm the current schedule with the New Jersey Division of Taxation through your attorney or title company.
• County recording fees and municipal certificates. Your attorney or title company will check the Union County Clerk and Westfield municipal offices for what is required and current fee amounts.
• Property tax proration. Union County’s tax calendar and Westfield’s tax collector determine how taxes are prorated at closing.
• Title insurance payer. Practice varies. Clarify in the contract and confirm with local title professionals.
• Attorney involvement. New Jersey customarily involves attorneys for review and closing. Their guidance helps keep your file compliant and on schedule.
• Lender disclosures. Expect a Loan Estimate early and a Closing Disclosure at least 3 business days before settlement if you have a mortgage.

Ready to talk numbers?

If you want a clear, local estimate for your specific address and timeline, request a tailored buyer closing statement or seller net sheet. With hands‑on guidance, neighborhood‑level expertise, and clear communication, you can plan your move without guesswork. When you are ready, reach out to Jeanne Hofmann to start a simple, step‑by‑step plan.

FAQs

Who pays the New Jersey Realty Transfer Fee in Westfield?

• The seller usually pays the state Realty Transfer Fee at closing, but the parties can negotiate in the contract. Your attorney or title company will calculate the exact amount from the state’s schedule.

How much should a Westfield buyer budget for closing costs?

• Plan for roughly 2 to 5 percent of the purchase price, not including your down payment. Your loan program, title premiums, and escrow prepaids will influence the final number.

When will I see my exact closing numbers as a buyer?

• Your lender must provide a Closing Disclosure at least 3 business days before closing. Review it carefully and ask questions during that time window.

Do I need an attorney to buy or sell in New Jersey?

• Attorney involvement is customary and recommended in New Jersey. Attorneys handle contract review, title issues, and closing paperwork, which helps reduce risk and confusion.

Who pays for title insurance in Westfield, the buyer or seller?

• The lender’s title policy is typically paid by the buyer. The owner’s policy is negotiable and varies by local custom and the terms of your contract.

How are property taxes prorated at closing in Union County?

• Taxes are prorated to the closing date based on the county and municipal tax calendar. If you prepaid beyond closing, you receive a credit on the settlement statement.