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uying a home in New Jersey can be expensive, and one of the biggest costs is often the real estate agent's commission. Typically, each agent involved in a transaction earns 2.5 to 3 percent of the sale price, which adds up quickly. For example, on a $400,000 home, the total commission would be around $24,000.
However, it's not always the seller who pays both commissions out of their proceeds. In many cases, each party may pay their own agent directly. To get a better understanding of real estate commissions in New Jersey, let's take a closer look at some data.
According to Clever Real Estate, the average total cost of agent commissions in New Jersey is 5.07 percent of the home's sale price. On a median-priced $520,700 home, this would come out to around $26,399. The commission is not split evenly between listing agents and buyer's agents, with an average of 2.55 percent for the listing agent and 2.52 percent for the buyer's agent.
Home prices vary widely in New Jersey, especially in beach towns or suburbs near New York City. Here are some examples of commissions in different cities:
* Hoboken: $877,500 home price, total commission around $44,489
* Ocean City: $1,333,000 home price, total commission around $67,583
* Trenton: $225,000 home price, total commission around $11,407
* North Bergen: $577,500 home price, total commission around $29,279
Real estate agents do a lot to earn their fee, whether they're working with sellers or buyers. They provide guidance on pricing, market the property, host showings and negotiate prices. On the buyer's side, agents help identify properties that fit their client's budget and lifestyle.
In New Jersey, the terms of the deal dictate who pays the agent commissions. Historically, the seller paid both commissions out of their proceeds, but a federal lawsuit settlement changed this in 2024. Now, each party may pay their own agent directly or negotiate other arrangements.
Whether hiring an agent is worth it depends on your needs and goals. If you're a seller who wants to secure as much profit as possible, the cost of a knowledgeable agent can be a good investment. For buyers, expert guidance in finding the right home and getting the best deal can also be valuable.
If you want to save money on fees, consider negotiating with an agent or working with a discount brokerage like Redfin or Clever. Some agents charge as low as 1 to 1.5 percent commission. Alternatively, you could opt for a "for sale by owner" approach, but this requires doing all the work yourself and navigating complex paperwork. Working with a cash-homebuying company can also eliminate commissions, but these companies typically don't pay full market value.
When finding a New Jersey real estate agent, ask friends or family for referrals, look for signs in your neighborhood, or interview candidates to find someone who's a good fit.
