Say no to making buying a home in NJ MORE expensive!
It’s no secret that the cost of living in New Jersey is already too high, and now the governor has proposed a plan that could make it even more expensive. The proposal would significantly increase the transfer fee on certain properties. For homes and buildings sold for more than $1 million but less than $2 million, the fee would double—from 1% to 2%—raising the minimum payment from $10,000 to $20,000. For properties sold for over $2 million, the fee would triple—from 1% to 3%—meaning the minimum payment would jump from $20,000 to $60,000.
What is the Realty Transfer Fee?
New Jersey imposes a Realty Transfer Fee (RTF) on property sellers when recording a deed. The fee is based on the property’s sale price or assessed value and applies to most property transfers unless exempt. Any home sold for over $1 million is subject to an additional fee known as the supplemental fee to the RTF, which is paid for by the buyer.
What is the Supplemental Fee to the Realty Transfer Fee?
In 2004, a 1% fee—which buyers pay, called the “ supplemental fee to the Realty Transfer Fee” was added to home sales over $1 million. When this was originally enacted, a $1 million dollar home was considered a mansion, but the reality is in today’s market, a home sold for over $1 million may very well be purchased by those in the middle class. Adjusted for inflation, a home purchased for $1 million dollars in 2004 is worth $1.7 million today, and a home purchased for $2 million in 2004 is worth $3.4 million today.
The cost of buying a home has more than doubled over the last two decades. In the last few years, the percentage of homes sold in New Jersey over $1 million has almost more than tripled. According to NJ Realtors® data:
- In 2018 – 5.75% of single-family homes sold throughout the state cost over $1 million.
- In 2024 – 16% of single-family homes sold throughout the state cost over $1 million.
Protect Homebuyers! Protect New Jersey!
Raising this fee will directly increase the cost of buying certain homes in New Jersey, putting even more financial pressure on buyers in an already expensive housing market. Instead of making it harder for individuals and families to afford the home they want, we should be focused on policies that reduce housing costs and improve affordability across the state. We need solutions that support living and growing in New Jersey—not creating new barriers that drive costs higher.
As it is, there is very little available inventory available in most price brackets. With this fee hike, it’s likely those looking to upgrade their home or downsize to a smaller space will stay out of the market, further limiting inventory.
TAKE ACTION NOW:
Click here to take action!
https://statara.quorum.us/campaign/NoToHigherFeesOnHomeSales/%20/
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