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Closing costs on LBI
Buying a home on LBI comes with more than just the purchase price. It’s important to plan for closing costs; the fees, taxes, and services required to finalize the deal. These costs typically range from 2% to 4% of the purchase price, and can vary based on the property type, loan structure, and town.
Here’s a breakdown of what to expect.
What are the typical buyer’s closing costs on LBI?
Home inspection & add-ons
A standard inspection plus any extras (pool, termite, radon, septic or well, etc.)
Estimated Cost: $650–$2,000+.
Title insurance
Protects you against any title issues, liens, or claims from previous owners. Consult with a title insurance company about specific prices.
Attorney fees
NJ real estate transactions typically involve a real estate attorney who will preform legal due diligence, review, and edit the contract.
Estimated Cost: $1,200–$2,000+
Loan origination fees (if financing)
Lenders may charge a percentage of the loan to process and underwrite the mortgage.
Estimated Cost: 0.5%–1% of loan amount.
Survey and flood elevation certificate
Long Beach Island is entirely in a flood zone as it is surrounded by the Atlantic Ocean and Barnegat Bay. In order to obtain a resale certificate of occupancy most municipalities require a new survey and flood elevation certificate. The elevation certificate will be needed to obtain a new flood insurance policy.
Estimated Cost: $500–$1,000+
Appraisal
Required by most lenders to verify the value of the property.
Estimated Cost: $500–$800.
Mansion tax
Properties over $1 million in New Jersey are subject to a 1% mansion tax. This is typically paid by the buyer at closing.
Escrow prepayments
A reserve must be created to ensure the buyer has sufficient funds to pay for prepaid interest, property taxes, and homeowners insurance.
Estimated Cost: Varies based on timing and lender requirements
Rental income credits
If the seller already booked summer tenants, that income may be credited to you at settlement..
Contact us
Long Beach Island is a unique place to live, work, and play, and finding the perfect home here takes a knowledgeable guide who understands the local market. Whether you're looking for a vacation home, an investment property, or a year-round residence, I have the local insight and expertise to help you navigate LBI's niche real estate market. I'm here to answer your questions, share my in-depth knowledge of the area, and help you make the best decisions. Reach out today, and let’s start finding your ideal property on LBI!