Major Change Just Hit NJ Homeowners This 4th of July Week !
- Alex Preziosi
- Jul 4
- 2 min read
Happy 4th of July, Everyone!
As fireworks lit up the sky this week, so did a major update in New Jersey real estate law:
Big news dropped this week in New Jersey real estate, the Mansion Tax, long paid by the buyer on homes over $1 million, will now fall on the seller instead.
This shift isn’t just administrative, it can mean tens of thousands of dollars lost (or saved) depending on which side of the deal you're on.
Back in April, I wrote about this exact possibility in my article:
At the time, it was a proposal. As of this week, it’s law.
How could this impact the market?
Sellers: This is a cost that could chip away at your expected net proceeds. Pricing, timing, and negotiation strategy may need to shift — especially in the $1M+ range.
Buyers: With one less fee at the closing table, we might see increased activity in the $1M–$1.2M range — or even buyers stretching just over the $1M mark.
Overall market: Expect some turbulence as sellers recalibrate and buyers test new leverage. The luxury segment may slow down short term — or surge if buyers act quickly before prices adjust.
Here is the tax breakdown,
Paid by the Seller (previously buyer):
(Effective July 1, 2025)
$1M - $2M Purchase Price: 1%
$2M - $2.5M Purchase Price: 2%
$2.5M - $3M Purchase Price: 2.5%
$3M - $3.5M Purchase Price: 3%
Over $3.5 M Purchase Price: 3.5%
Bottom line:
If you’re planning to sell, especially if your home is anywhere near the $1M threshold, this new rule could have a serious effect on your bottom line. Sellers should be planning for higher closing costs, but with the right strategy, you can still come out ahead.
Want to run the numbers or talk strategy?
Just reply to this email and I’ll help you break it down on a simple net sheet.
Let’s make sure you’re prepared before this new law impacts your sale.
