NJ Avg Real Estate Commission Rate in Jersey City, New Jersey

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How to save on real estate commission in New Jersey

💰 Best ways to save on commission: Negotiating lower rates with a traditional realtorWorking with a low commission real estate company

Keep reading to learn how you can negotiate cheaper rates or find low commission companies that negotiate lower realtor fees for you!

Tips for negotiating realtor commission in New Jersey

Whether you’re selling a renovated home in Newark, a chic condo in Jersey City, or a sprawling family home in Montclair, you should always try to negotiate a lower commission rate — it could save you thousands!

Negotiating a lower realtor percentage in New Jersey depends on two main factors: your situation and the housing market.

Factor You may have an easier time negotiating low rates if… Your situation You’re selling a high-value homeYou have a personal relationship with a realtorYou can offer a realtor repeat businessThe New Jersey housing market Homes are selling quicklyThere are relatively few homes listed for saleHome values are rising

While your personal situation will obviously vary, New Jersey real estate market conditions will affect all home sellers in your area.

In general, in a seller's market — where home sellers have more leverage than buyers — a listing agent's job is easier and they may be more willing to lower their commission rates. The opposite is usually true in a buyer's market.

» LEARN: Find our top tips for negotiating lower commission fees

To judge the current state of your real estate market, look at these three factors:

  • Months of inventory
  • Sale to list price
  • Home value trends

If every factor points to New Jersey being a seller's market, then you may be in a good position to negotiate a lower commission rate with your agent. If market conditions are mixed or favor buyers, it may be more challenging to persuade your realtor to accept a cheaper fee.

The current state of the New Jersey real estate market

Factor Trends Indication Months of inventory There’s 1.0 months of housing inventory on the market Seller’s market Sale-to-list ratio Homes are selling for 103.99% of their listing price Seller’s market Home values Home values have risen 28.59% year over year Seller’s market

Find a top realtor in New Jersey

Ready to negotiate with an agent in your area? We looked at the data and found the top New Jersey agents for you.

» FIND: The best New Jersey realtors by city

Low commission real estate companies in New Jersey

Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low commission real estate company.

These are some of the top discount and flat-fee MLS services in New Jersey.

The top flat-fee MLS listing services in New Jersey

Flat-fee MLS services list your home on your local MLS for a low fee, often around $100-300. The trade-off is that you'll have to handle almost the entire home-selling process yourself. If you're a real estate novice, or simply don't have the time to sell your home without a realtor, this might not be a good option.

» MORE: What you need to know about flat-fee MLS services.

Learn more

New Jersey has it all: swank condos minutes from Manhattan, wooded estates, quaint small towns, possibly the best beaches on the East Coast along the famous Jersey Shore, plus Atlantic City, the East Coast’s answer to Las Vegas. The state also has a very diverse, forward-looking economy that looks primed for a protracted boom.

New Jersey home values are very healthy, far surpassing not only the national average, but the home values of its more high-profile neighbor, New York. Further, they’ve risen sharply over the past decade, and show no signs of slowing down.

New Jersey's booming state economy, driven by tourism and thriving biotech, tech, and pharmaceutical industries, should keep both the state’s appeal and housing demand high. Though it’s an expensive market to buy into, New Jersey real estate looks like a great investment. And if you’re selling, you’re absolutely in the driver’s seat.

If you want to save thousands of dollars of commission on your New Jersey home sale, Clever pre-negotiates a low 1% commission rate, or a flat fee of $3,000 if your home sells for less than $350,000, with full-service real estate agents in New Jersey. Contact Clever today to get started on your commission savings!

Do Real Estate Agents Get Paid Monthly?

Real estate agents don’t get paid monthly.

The main source of income for real estate agents comes from the 6% commission. The commission is divided among the involved brokerages after the sale.

There are few agencies that offer a base salary, but most real estate agents get paid from the commission received.

Are Realtors overpaid?

The median income for Realtors was $51,220 in 2020, according to the U.S. Bureau of Labor Statistics. Median income represents the middle of the scale: Half of all Realtors made more, half made less.

Though home sellers may feel that Realtor fees of up to 6 percent are too high, Duffy argues that they’re not high enough. After all, a lot goes into listing a home, such as:

  • Performing a comparative market analysis to establish a competitive price
  • Arranging for photo shoots, sometimes including aerial shots via drone
  • Writing descriptive listing copy to attract interest from other Realtors and potential buyers
  • Providing staging guidance
  • Showing the property multiple times to prospective buyers
  • Hosting open houses on weekends
  • Providing yard signage
  • Making sure listings are populated on all major property search websites
  • Helping the seller review and negotiate buyer offers

When an offer comes in, the listing agent negotiates on behalf of the seller, often presenting one or more counteroffers. And with the volatility of the current market and record low levels of inventory, Realtors frequently deal with multiple potential buyers to help you get the most out of your property.

Average real estate commissions by state

Overall, the national average Realtor commission in 2021 was 5.5 percent, according to data from Clever. In most states, the commission ranged between 5 and 6 percent. But in states like California and New Hampshire, where expensive properties abound, the commission was typically under 5 percent. Find the average commission in your state in the table below:

State Average commission rate
SOURCE: Clever
Alabama 5.61%
Alaska 5.25%
Arizona 5.36%
Arkansas 5.91%
California 4.92%
Colorado 5.50%
Connecticut 5.41%
Delaware 5.75%
Florida 5.38%
Georgia 5.87%
Hawaii 5.25%
Idaho 5.55%
Illinois 5.21%
Indiana 5.87%
Iowa 5.90%
Kansas 6.00%
Kentucky 5.73%
Louisiana 5.19%
Maine 5.45%
Maryland 5.08%
Massachusetts 4.97%
Michigan 5.98%
Minnesota 5.68%
Mississippi 5.54%
Missouri 5.92%
Montana 5.50%
Nebraska 5.29%
Nevada 5.00%
New Hampshire 4.83%
New Jersey 5.18%
New Mexico 6.21%
New York 5.11%
North Carolina 5.45%
North Dakota 6.00%
Ohio 5.84%
Oklahoma 5.89%
Oregon 5.19%
Pennsylvania 5.60%
Rhode Island 5.15%
South Carolina 5.83%
South Dakota 5.00%
Tennessee 5.56%
Texas 5.78%
Utah 5.17%
Vermont 6.00%
Virginia 5.15%
Washington 5.17%
West Virginia 5.54%
Wisconsin 5.93%
Wyoming 5.48%

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What If I Can’t Afford Closing Costs as a Seller?

If you can’t afford closing costs, you canask your lender or the buyer to help cover some of the cost. On the other hand, you can apply for Down Payment Assistance or a Closing Cost Assistance Grant.

Closing Cost Assistance Grants are specifically available for the purpose of helping low to moderate-income households. To learn more, inquire with a trusted lender for more information. 

If a loan or grant is not an option, consider negotiating with your lender to assist you by lowering your down payment on your next house. 

The money saved in the down payment should be able to cover your closing costs. As a result, you should expect your mortgage costs to increase.

Don’t Break the Bank

Lastly, if you wish to ask the seller if they are willing to pay part of the closing costs, make it clear that the sale agreement is contingent on meeting this condition. 

You may choose to reveal that you do not have the funds for the closing costs and that as a result, have applied for a grant or have spoken with a lender already. However, you’re not required to.

Before facilitating this negotiation, talk to your realtor for advice on how to best move forward. 

What Prompted the Change?

Redfin says it is able to publish additional commission information due to an upcoming settlement between the Department of Justice and the National Association of Realtors, which removes restrictions on publishing the data.

The goal of the suit was to increase competition among brokers by modifying how broker fees and information is presented in Multiple Listing Services, a collection of around 600 databases where brokers list and browse the details of local homes for sale.

For example, agents are currently able to use the platform to filter listings according to the commission percentage they would be paid, which the suit said could lead them to steer a buyer toward listings paying higher commissions.

The suit also alleged that the lack of publicly available information concerning commissions could allow an agent or broker to claim their services are free to buyers.

NAR, a trade group that sets the rules of use for the majority of MLSs, agreed to a settlement with the DOJ, without admitting any fault, and is currently working on changes to its policies.

“This agreement furthers NAR’s and the MLS system’s goal of creating an efficient marketplace that fosters cooperation between brokers for the benefit of consumers,” said Mantill Williams, vice president of communications for NAR.

Among the changes NAR is making is the full disclosure of the commissions paid to both the seller’s and the buyer’s broker as part of publicly available home listing information. NAR rules will also specify that brokers must show potential buyers all properties that fit their criteria, regardless of the compensation offered or the listing broker.

As it becomes easier to learn what real estate professionals are being paid, here is everything you need to know about how commissions work.

Common free services offered by UpNest agents in New Jersey

  • 6 Avg. of open houses

  • 5 Mo. Avg. min. contract length

  • 81% Professional photography

  • 1% Home staging

  • 77% Your own website

  • 100% Postcards & flyers

  • 100% Virtual tour video

  • 33% Landscaping

How commissions have changed over the years

Since the early 1990s, Realtor commissions have seen a fairly steady decline. In 2021, the average commission was 5.5 percent — down from more than 6 percent in 1991.

This isn’t to say the total amount Realtors earned decreased, however. In strong selling markets, home prices are high and sellers receive multiple offers. This allows more room for negotiation on the commission, so Realtors may accept a lower commission to earn a higher amount overall.

As the market slows down, Realtor commissions may rise again and become less negotiable. Even so, a seller with a  high-priced listing may still be able to negotiate a lower commission more effectively.

An In-depth Breakdown of the Home Selling Costs In New Jersey

In the table above that calculated the total selling costs of your home we showed you 5 unique buckets of items that will cost you money when you sell your home. Let’s dive into each of these buckets for you to understand what is actually costing your all of that money.

Cost of preparing your home for sale: 2-3%

The costs associated with preparing your home for sale are typically made up from tasks associated with home improvements, cleaning, landscaping and home staging. You will want to focus on the high impact items such as cleaning the carpets, applying a fresh coat of paint to the walls, having a handyman repair small items, applying a fresh layer of mulch to the garden beds etc.

These costs can vary greatly depending on how outdated or neglected your property is before selling. If your property requires more than the 2-3% estimated costs you might want to consider the pros and cons of an as-is sale and opt to not do any repairs or freshening up at all.

Real estate agent commission fees in New Jersey: 5-6%

By far the most expensive cost of selling your house in what you are going to pay a New Jersey real estate agent. Their commissions in New Jersey will typically run 5-6%, although there is no set fee and they are negotiable. However, the benefits of having a real estate agent handle the same of your home is they will provide white glove concierge service and have a marketing plan to get you the most amount of money in your home sale. That’s assuming you choose one with a demonstrated history of getting these types of results.

A very popular trend in New Jersey is to consider alternatives to real estate brokers such as low commission realtors or flat fee MLS listings.

Want to sell your New Jersey home and save thousands? Find out how

Negotiable items and buyer incentives: ~1-3%

When selling your house a savvy negotiator will be able to get terms in their favor. So it is prudent of you to build into your selling cost estimates money for negotiating with the buyer and this is separate from the purchase price.

For example, a buyer without a lot of money for their closing costs will typically ask the seller to pay for some of these items. This is also called seller concessions and is allowed by the banks with most mortgage programs, up to a certain limit. We would recommend estimating about 1-2% to have in reserves for this expense.

Also, after you have an agreement with a buyer, they will most likely have a home inspection and there is always items they request for you to either repair or credit them back at closing. A fair estimate is to set aside about 1% of the selling price for this.

Lastly, a good incentive for a buyer is to offer a home warranty to give them piece of mind that the homes appliances and mechanicals will be covered in the first year of owning the home. Most buyers don’t know that these items are not covered under homeowner’s insurance so setting aside the $400-$600 for the warranty is a cost worth spending.

Seller closing costs: ~1-3%

Closing costs are the various fees and expenses incurred by buyers and sellers during the closing of their real estate sale. New Jersey sellers have a lot of closing costs that are unique and customary to their local county and are deducted from the total profit of the sale. During a typical home sale, a New Jersey seller can expect to pay around 3% in closing costs on these items below.

  • Realty Transfer Fee – is imposed upon the recording of deeds evidencing transfers of title to real property in the State of New Jersey. The Realty Transfer Fee is calculated based on the amount of consideration recited in the deed. Rates vary see here for details.
  • Attorney Fees – In New Jersey an attorney is not required for the closing, but if you want to use one they the will charge fees for drawing up the closing documents and representing you in the closing process. You can expect to pay between $600-$1,000 for an attorney in New Jersey.
  • Title Search – This fee is charged to look at the history of ownership and liens for the property. It will confirm the title is clear, and no outstanding liens or encumbrances exist.
  • Courier Fee – Only applicable if you have a mortgage, this fee will be charged to transfer the payoff funds to the existing lender.
  • Estoppel Fee – If you own a condo or have a homeowners association that charges dues, this nominal fee will be collected to determine payoff.
  • Property Taxes – Property taxes are paid in arrears (1 year behind) and will be pro-rated to the day of closing and varies based on property assessment.
  • Pest Inspection – Only applicable if your buyer is getting a VA mortgage, you may be required to pay for the pest inspection.
  • Title Insurance – This one is also negotiable. If the buyer is getting a mortgage, they pay for a lender’s policy, but there is also an owner’s title policy.

Moving costs: ~1-2%

Don’t forget about the costs associated with moving out of the home you are selling! If you DIY your move you still have the expense of moving boxes and packing supplies, moving trucks, storage units or canisters or hiring movers if tackling the job yourself isn’t for you.

How Can I Sell My House Using ISoldMyHouse.com? Learn more

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