- What is a fair realtor commission in New Jersey?
- How much do realtor fees in New Jersey cost?
- What factors affect realtor fees in New Jersey?
- Home price trends
- How many homes are for sale
- How quickly homes are selling
- How are realtor fees split in New Jersey?
- Who pays realtor commission in New Jersey?
- How to save on realtor fees in New Jersey
- Find an agent who charges lower rates
- Negotiate a lower realtor fee on your own
- Sell without a realtor
- FAQs about realtor fees in New Jersey
- Related Links
What’s a fair realtor fee in New Jersey? | How much does commission cost? | Who pays realtor fees? | Tips to save on New Jersey realtor fees | FAQs
Realtor fees in New Jersey cost an average of 5.13%, which equates to a total commission fee of $24,154 for a typical home in the state. This includes the fees for both the seller’s agent and buyer’s agent, with each realtor earning around half the total commission amount.1Estimated realtor fees based on the average New Jersey home value and commission rate
Knowing the average realtor commission can help you when you’re selling a house in New Jersey: you can budget accurately for your home sale and avoid overpaying a realtor.
But if you’re like many New Jersey home sellers, you might think 5.13% is too much to pay a realtor. Luckily, there are lots of ways to save on realtor fees in New Jersey.
The best option for most people is to find a realtor through a free service like Clever Real Estate. Clever negotiates 1% listing fees with top local agents at trusted brands like Keller Williams and RE/MAX. You’ll get guaranteed full service, but pay less than half of what New Jersey agents typically charge.
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What is a fair realtor commission in New Jersey?
A fair realtor commission in New Jersey is whatever rate a typical seller with a home like yours would expect to pay in your local market. But what’s most important is that you and your agent agree on a rate you’re both comfortable with.
Most New Jersey realtors expect a total commission rate of around the statewide average of 5.13%. But you may be able to persuade your agent that a lower fee is fair if:
- Your home value is higher than the area average
- Your local real estate market is hot and bidding wars are common
- Your home is in great condition and doesn’t require any repairs or upgrades
- Properties similar to yours are selling quickly
- You’re also buying a house with the same agent
If you’re looking to save on realtor fees, it’s also possible to find New Jersey real estate agents with low commission rates. The top discount brands offer reduced listing fees (as low as 1% in New Jersey!), but still provide all the expertise and hands-on service you’d expect from an experienced local agent.
How much do realtor fees in New Jersey cost?
The average New Jersey realtor commission rate is 5.13%, with 2.63% going to the listing agent and the remaining 2.50% going to the buyer’s agent.
New Jersey realtor fees usually don’t vary too much from agent to agent — the majority of agents charge rates close to the area average. Our data found that most New Jersey sellers end up paying between 4.36%-5.89% in total real estate commission fees.
The table below shows an example of how realtor commission costs would affect a seller’s net profit on an average home in New Jersey:
The seller pays the realtor fees in New Jersey, but the seller doesn’t pay out of pocket. The realtor fees come out of the proceeds of the sale, just like some other closing costs. When you sell your house, your sale price should be high enough to cover the realtor fees and any other expenses, like whatever is owing on your mortgage.
What factors affect realtor fees in New Jersey?
Average realtor fees in New Jersey are affected by conditions in the local housing market. Key factors include home price trends, the number of active real estate listings, and how quickly houses are selling.
Home price trends
Source: Zillow. Last updated: July 2022.
Home value has a significant impact on realtor commission. The median home value in New Jersey is $470,843, so if your home is worth more, agents may be more open to offering you a lower commission rate. This is because realtors can take home more money by charging 2% on a $500,000 home than they can charging 3% on a $150,000 home.
If your home is worth less than what other homes in the area are worth, you’ll probably have a hard time finding an agent willing to give you a deal.
Similarly, the state of the New Jersey real estate market may affect your ability to negotiate lower realtor fees. If home prices are rising, then realtors may be more open to negotiating a lower commission rate. But if prices are stagnant or falling, realtors may start charging higher fees to protect their bottom line.
How many homes are for sale
The number of active real estate listings in your area can impact what you pay in realtor fees. When fewer homes are for sale, agents are competing with each other for fewer listings. To get your business, they may be more willing to lower their rates.
Conversely, when more homes are on the market, agents are less incentivized to lower their fees. An excess of listings usually means the market is cooling, so realtors aren’t guaranteed a quick and easy sale even if they do get your listing.
Active listings in New Jersey are down 13.0% since last year. Nationwide, inventory is up 18.7%.
How quickly homes are selling
*12-month rolling average. Source: Realtor.com. Last updated: June 2022.
How quickly homes are selling in your market may also affect how much you pay in realtor fees. If homes are selling fast, that typically means there is high demand. In that case, you can usually find a realtor willing to lower their commission rate. For them, a quicker sale means an easier paycheck.
If homes are taking longer to sell, your agent may have to work harder and longer to sell your house. Because they’re putting in more work, they’re less likely to lower their rates.
Across New Jersey, homes sell in an average of 39 days, but selling times can vary between markets. For example, the average selling timeline in Trenton is 34 days, but homes in Newark average 43 days on the market.
To find out how quickly homes are selling in your local market, talk to an experienced real estate agent. You can also use Zillow to see how long it’s taking homes to sell and if they’re selling for over asking price. To find this information, go to the Zillow homepage, open the “Buy” drop-down menu, and click on “Recent home sales.”
Remember that market conditions aren’t the only factor affecting how long it will take for you to sell. Your home’s unique characteristics are also important. Even if you’re in a slow market, your home may sell quickly if it’s in a desirable neighborhood or if it has features that buyers are looking for.
How are realtor fees split in New Jersey?
Realtor fees in New Jersey are typically split down the middle between the two real estate agents involved in the transaction — often 50/50. On average, the seller’s agent earns 2.63% of the home price and the buyer’s agent earns 2.50%, for a total commission of 5.13%.
The 50/50 split in commission between the seller’s agent and the buyer’s agent isn’t set in stone. As the seller, it’s your decision how much you offer in total commission and how that total is divided between the listing fee and the buyer’s agent fee. Both rates are technically negotiable — as long as your agent agrees to them.
We strongly recommend offering a buyer’s agent fee that is at least close to the average. This will incentivize buyer’s agents to show your property to their clients.
Aside from splitting the total realtor commission with each other, seller’s agents and buyer’s agents also split their commission with their brokerage. Brokerage commission varies, but it’s often around 50% of what the agent earns on the transaction. So if you pay a listing fee of 3%, your agent may take home only 1.5%.
The table below breaks down an example of a typical New Jersey realtor commission split.
Who pays realtor commission in New Jersey?
The home seller typically pays both the seller’s and buyer’s realtor fees in New Jersey. The commission comes out of the sale proceeds at closing, so the seller doesn’t pay commission upfront or out of pocket. This is how realtor commission works across most of the country.
While it may sound odd for sellers to pay the buyer’s agent commission, it actually makes sense. That commission is essentially a marketing cost. By setting the buyer’s agent commission, sellers give agents an incentive to show their house to potential buyers.
A seller can technically refuse to offer a buyer’s agent commission, but this will make it much harder to find a buyer. By not offering a buyer’s agent commission, a seller is requiring the buyer to either buy without an agent or pay for the buyer’s agent commission out of pocket. Very few buyers fit into either of those categories.
How to save on realtor fees in New Jersey
If you’re selling a house in New Jersey and want to save on realtor fees, you have a few different options. Most sellers get the lowest rates (and best experience) by working with a full service realtor who charges lower rates, but you could also try to negotiate a lower realtor fee on your own or sell your house by owner.
Find an agent who charges lower rates
Most New Jersey home sellers who want to save on realtor fees should work with a local real estate agent who offers full service for a lower rate.
Our top pick is Clever Real Estate, a free service that matches sellers like you with top local agents — and negotiates lower realtor fees on your behalf. (See our full low commission real estate agent rankings for more local options.)
Clever is the best choice for most people because it negotiates 1% listing fees with experienced agents from trusted brands like Keller Williams, RE/MAX, and Berkshire Hathaway. You’ll get 100% full service from your agent (guaranteed), but pay a fraction of the 2.63% listing fee that most New Jersey agents charge.
Negotiate a lower realtor fee on your own
As a New Jersey home seller, you can always try to negotiate realtor commission rates yourself — you don’t have to just accept whatever listing an agent quotes you.
You can put yourself in a stronger negotiating position with a realtor by offering to do things that will make their job easier. For example, you can offer to forgo some of the services a realtor would typically offer, such as open houses and 3D tours.
Offering a highly competitive buyer’s agent commission can also entice seller’s agents to accept a lower listing fee. By offering a higher commission to buyer’s agents, your listing is more likely to generate interest among buyer’s agents and their clients. Greater interest makes your house easier to sell, which makes the listing agent’s job easier.
Keep in mind that not all realtors are willing to negotiate their commission, and those that are typically won’t drop their fee by more than 0.25%-0.5%. It’s usually easier to get a lower rate by finding an agent who charges all of their clients a discounted rate.
Sell without a realtor
Selling your home for sale by owner (FSBO) in New Jersey lets you avoid paying the listing agent’s fee, effectively halving the cost of commission compared to working with a traditional agent. Most FSBO sellers still end up paying a conventional buyer’s agent fee, around 2.50% on the average New Jersey home sale.
While the potential savings from avoiding listing fees look great, there are many risks you’ll encounter when you try to sell your house without a realtor.
FSBO sellers take on a lot more work than regular home sellers. You’ll have to attract buyers, negotiate offers, pay extra fees to list your home on the MLS, and navigate legal paperwork. You’ll also miss out on the local market expertise that top real estate agents provide, which is critical when trying to price your home strategically to get the highest sale price possible.
In fact, research shows that FSBO homes sell for 5.5% less on average than similar properties listed with an agent. So while you may save 3% by cutting out the listing agent’s fee, you could lose more than that if your home sells for less than its full market value.
» MORE: How to sell your house without a realtor in New Jersey
FAQs about realtor fees in New Jersey
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