PA vs NJ Closing Costs Explained For Home Buyers

Wondering why your closing costs change the moment you cross the Delaware River? If you are comparing a home in Perkasie to a similar place in central New Jersey, the rules and customs can feel confusing. This guide breaks down what buyers usually pay in Pennsylvania vs New Jersey, what is unique in Bucks County, and how to plan your cash to close with confidence. Let’s dive in.

PA vs NJ at a glance

• Transfer taxes and fees are the biggest difference. In Pennsylvania, the realty transfer tax is commonly split between buyer and seller by local custom. In New Jersey, the state Realty Transfer Fee is typically the seller’s responsibility.
• Many other costs look the same in both states. Lender fees, title insurance, recording charges, and prorations all appear in both places, though who pays can be negotiated.
• Timing of disclosures is the same. Federal TRID rules require a Loan Estimate within three business days of applying and a Closing Disclosure at least three business days before closing.
• Bottom line for buyers. Your cash to close can shift based on how transfer taxes or fees are allocated and on local municipal charges.

What buyers usually pay

Lender and loan fees

Your lender controls these. Common items include origination, processing, underwriting, credit report, and any discount points. Buyers pay these costs, either at closing or folded into the loan as allowed. You will see them on your Loan Estimate early in the process.

Appraisals and inspections

The lender appraisal is required for most mortgages. General home, pest, and well or septic inspections are optional but strongly recommended. Buyers usually pay for these items when ordered or at closing.

Title and settlement costs

Title work covers the search, commitment, and the settlement agent who prepares the closing. The lender’s title insurance policy is required and is paid by the buyer. An owner’s title policy protects your ownership; who pays for it depends on local custom and your contract. In many Pennsylvania and New Jersey markets, sellers often cover the owner’s policy, but it is negotiable.

Transfer taxes and fees

This is the key state difference.

• Pennsylvania: A realty transfer tax applies. In many counties, including Bucks, the tax is commonly split 50-50 between buyer and seller, but your contract controls the final allocation. Some municipalities add local shares.
• New Jersey: The state Realty Transfer Fee is typically paid by the seller. Municipal or county charges may also apply.

These charges can be a meaningful percentage of the price, so clarify who pays early in negotiations.

Recording and tax stamps

County recording offices charge to record the deed and any mortgage documents. Buyers often pay to record the mortgage. Sellers often cover deed recording or stamps, but this varies by contract and local practice.

Prepaids, escrows, and prorations

Expect to prepay the first year of homeowner’s insurance, prepaid interest from your closing date to your first payment, and an escrow deposit for property taxes and insurance if your lender requires it. Taxes and HOA dues are prorated between you and the seller as of the closing date.

Attorneys and settlement agents

Attorney involvement is common in New Jersey and varies in Pennsylvania. In Bucks County, many closings are handled by title companies, with attorneys involved as needed. Each side typically pays their own attorney if used.

HOA, municipal, and utility items

You may see HOA transfer fees, municipal certificates, or water and sewer transfer costs. These are highly local. Buyer or seller may pay based on custom and the agreement.

Real estate commission

The seller typically pays the commission, which is shared between the listing and buyer’s agents. The rate is negotiated in the listing agreement.

Bucks County buyer notes

• Transfer tax custom. In Bucks County, the realty transfer tax often ends up split between buyer and seller, but it is negotiable and may vary by borough or township. Confirm any local add-on taxes with your title company.
• Recording fees. The county sets fixed per-document charges for deeds and mortgages. Your title company or the Recorder of Deeds can provide the current schedule.
• Property tax timing. Bucks County property taxes are billed on local schedules that vary by municipality and school district. You will see prorations on your closing statement, and your lender may require tax escrows.
• Owner’s policy practice. Many sellers in Pennsylvania pay for the owner’s title policy, but not always. Ask early so you can budget correctly.
• Settlement style. Title-company closings are common in Bucks County, with attorneys engaged as needed. Your agent can connect you with trusted settlement teams.

Timing and your disclosures

• Loan Estimate. Your lender must provide this within three business days of application. It outlines your loan terms and estimated closing costs.
• Closing Disclosure. You must receive the final numbers at least three business days before closing. Review it carefully and ask your lender and title company to explain any changes.
• Common timing pitfalls. Last-minute loan changes or adjustments to seller credits can trigger new waiting periods. HOA or municipal clearance delays can also push the date. Build in a little cushion.

Cost ranges to expect

These ballpark figures help you plan. Actual totals depend on price, loan type, and local rates.

• Lender origination and points: about 0 to 1 percent of the loan amount or a flat fee.
• Appraisal: roughly $300 to $800.
• Home inspection: roughly $300 to $600, plus any specialty inspections.
• Title insurance: often about 0.25 to 1.0 percent of the purchase price for combined policies, subject to filed rates.
• Transfer taxes and fees: commonly 0.5 to 1.5 percent of price when state and local charges are combined. Allocation differs between PA and NJ.
• Recording fees: typically a few hundred dollars depending on the number of documents.
• Prepaids and escrows: set aside several months of taxes and insurance, plus prepaid interest, which can total hundreds to thousands based on taxes and timing.

Buyer checklist: start here

1. Request a Loan Estimate from at least one lender, and ideally compare a few. Focus on origination, points, and total estimated closing costs.
2. Ask for a sample settlement statement for a recent, similar Perkasie purchase to see who pays which items locally.
3. Get a title cost estimate. Ask a Bucks County title company or closing attorney for title premiums, deed and mortgage recording fees, and any local transfer charges.
4. Confirm transfer-tax allocation in your agreement. In PA, verify the split. In NJ, confirm the seller will pay the state Realty Transfer Fee.
5. Budget your upfront items. Set aside funds for inspections and the appraisal as you schedule them.
6. Confirm escrow requirements. Ask your lender how many months of taxes and insurance you must deposit and the estimated prepaid interest.
7. If comparing a New Jersey home, request the seller-side estimate of the NJ Realty Transfer Fee and any municipal certificates.
8. Keep a buffer for last-minute adjustments. Small prorations and updates are common just before closing.

Next steps

• Connect with a local mortgage lender for a fresh Loan Estimate.
• Ask a Bucks County title company or closing attorney for current title, recording, and transfer-tax estimates.
• Reach out for a neighborhood-specific sample closing statement and guidance on local customs.

Suggested message you can copy and send to your lender or settlement team:

“Please provide an estimated Closing Disclosure or settlement statement for a home at [address or neighborhood], purchase price $_____, loan type _____. Include transfer-tax allocation, title insurance cost, and recording fees.”

If you want tailored help comparing a Perkasie purchase to a nearby New Jersey option, connect with Adrienne Ward for clear estimates and next steps.

FAQs

Who pays transfer taxes in PA vs NJ?

• In New Jersey, the seller typically pays the state Realty Transfer Fee. In Pennsylvania, the realty transfer tax is commonly split between buyer and seller by local custom, but your contract controls the final allocation.

When will I know my exact cash to close?

• You receive a Loan Estimate within three business days of application and a final Closing Disclosure at least three business days before closing, with figures aligned to the title company’s statement.

Is the owner’s title policy always seller-paid?

• No. In both PA and NJ, who pays is a matter of custom and negotiation. Many sellers cover it, but confirm during negotiations and budget accordingly.

Are closing costs higher in Bucks County than nearby NJ?

• It depends on transfer-tax allocation, New Jersey’s seller-paid state fee, and local recording or municipal charges. Your escrow needs and property tax levels also affect the total cash to close.