Walter Burns
I am often asked by Hoboken buyers what closing costs are involved when purchasing Hoboken real estate. Closing costs can vary depending on the type of Hoboken property you are buying. Here is an overview of the different closing costs and estimates from my experience. Please keep in mind that these are just estimates. I recommend speaking with your lender and lawyer for a more specific breakdown of costs.
Hoboken Real Estate Closing Costs
- Real Estate Attorney: You are going to want to hire a real estate attorney to represent you in your Hoboken real estate purchase. I have seen legal fees range on average from $1,000 to $,1200 per transaction. Check out my post from a few weeks ago if you are interested in reading more about selecting a Hoboken real estate attorney.
- Home Inspection: Hoboken condo buyers have the right to do a home inspection as part of the closing process. Home inspections range from $200 to $300 for a condo, $400 to $500 for a house. Multi-family dwellings can cost more.
- Mortgage Application Fee: Depending on the bank, the fees can vary. I have seen mortgage application fees range from $350 to $500.
- Mortgage Appraisal: The mortgage company is going to require a mortgage appraisal for the property. Appraisals can range from $400 to $600.
- Title Search: Your lawyer is going to conduct a title search on the property to see if there are any liens against the property. Liens can include unpaid taxes or an unpaid water bill. Title searches can range from $500 to $750.
- Title Insurance: Mortgage companies require that the title on the Hoboken condo is insured. This expense is probably the largest of all closing costs expenses. When I purchased my Hoboken condo, my title insurance ran me about $2,600. I recommend speaking with your real estate attorney about this cost. Your attorney most likely has a title insurance contact you can speak with. My company, Weichert Realtors also has a parent company Weichert Title Agency that I can refer you to as well if you were interested in learning more.
- Property Tax Escrow: Your mortgage company is going to escrow upfront about 3-4 months worth of property taxes to build a property tax reserve. This money will be applied towards your next quarterly tax payment.
- Condo Association Buy-in: Some Hoboken condos, not all, require the purchaser to pay a fee equal to 2-3 months of condo maintenance fees upfront. This is done to flush the condo association with some money when a new Hoboken condo buyer moves in. This money is not returned and used for association purposes. You will be able to find out if the Hoboken condo you are interested in purchasing has such a fee in the Master Deed and Bi-laws for the condo association. Your Hoboken real estate attorney usually reviews this document, along with the financials for the condo association during the attorney review period.
If you have any additional questions about closing costs, please contact me. I’ll be happy to answer any questions.
For Hoboken real estate news and information, join my Hoboken real estate blog!