Buying a Home in NJ vs. PA
Moving across the bridge?
Buying a Home in NJ vs. PA
4 Differences Nobody Warns You About
Same region. Different rules.
Philadelphia and South Jersey are about 15 minutes apart, but buying a home on each side of the river follows different rules.
I'm licensed in both New Jersey and Pennsylvania, and I regularly see buyers caught off guard when they cross the bridge expecting the same process. Here are four differences worth knowing before you make an offer.
01 Attorney review: signed doesn't always mean done
New Jersey
After the buyer and seller both sign, the contract usually goes into a 3-business-day attorney review period. Either side's attorney can cancel the contract or propose changes. It's common for price, credits or inspection terms to be adjusted here.
Pennsylvania
There's no attorney review period. Once the agreement of sale is signed, it's binding, subject to the contingencies written into it, such as inspection, financing and appraisal.
What it means for you: In PA, read everything carefully before you sign, because there's no built-in cooling-off period. In NJ, don't start celebrating (or packing) until attorney review has ended.
02 Transfer tax: who pays depends on the state
New Jersey
The seller typically pays the realty transfer fee.
Pennsylvania
Transfer tax is customarily split between the buyer and the seller. In Philadelphia, the combined state and city rate is among the highest in the region, so the buyer's share can be a meaningful closing cost.
What it means for you: A buyer moving from NJ to Philadelphia may see a closing cost they didn't plan for. Ask your lender for an estimate early so there are no surprises in your cash-to-close number.
03 Town inspections: the municipality may inspect before you close
New Jersey
Many towns require a resale certificate of occupancy (CO) inspection before a home can change hands. The state also requires a certificate showing the home has working smoke detectors, carbon monoxide alarms and a fire extinguisher. Requirements, fees and timelines vary by town.
Pennsylvania
Some townships and boroughs require a use and occupancy (U&O) inspection at resale, but many areas have no resale inspection at all.
What it means for you: In NJ, these inspections can turn up repairs that must be handled before closing, so it helps to know the town's rules up front. Sellers usually order them, but the results can affect your timeline as a buyer.
04 Property taxes: compare the monthly payment, not just the price
New Jersey
Property taxes are among the highest in the country. A home with a lower price can still cost more each month once taxes are included.
Pennsylvania
Property taxes are generally lower, but local earned income taxes apply in many areas, including Philadelphia's city wage tax.
What it means for you: Look at the full picture: the mortgage payment, property taxes, insurance and any local income tax. Two homes at the same price can have very different monthly costs depending on which side of the river they're on.
At a glance
| New Jersey | Pennsylvania | |
|---|---|---|
| Attorney review | Usually 3 business days after signing | None; binding once signed |
| Transfer tax | Typically paid by the seller | Customarily split buyer/seller |
| Resale inspections | Many towns require a CO, plus a smoke/CO/fire extinguisher certificate | Some townships require a U&O; many areas don't |
| Taxes to watch | High property taxes | Local earned income taxes, including Philadelphia's wage tax |
Thinking about buying on either side of the river?
Whether you're moving from Philly to South Jersey or from NJ into the Pennsylvania suburbs, I'm happy to walk you through how it works where you're looking.
Daniel Kent
Licensed in NJ and PA
REAL Broker, LLC | Office: 855-450-0442
Cell: (856) 904-5854
danielkentproperties.com
This article is general information, not legal or tax advice. Requirements vary by municipality and can change. Consult an attorney or tax professional about your specific situation.
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