Information for New Jersey Home Buyers
We're glad that more people are becoming curious about this market! It's an exciting and rewarding situation, with interesting old homes in good condition, new luxury developments, plucky condos downtown, and well-planned family residences with lasting financial and utilitarian appeal.
Searching for a home
Despite (and perhaps because of) the great selections in homes in this area, buyers are having a difficult time zeroing in on the home or property that is uniquely appropriate for their needs.
Just remember: Browsing the listings for months is one way search out the deals, but weighing the investment potential of each property can be difficult, and many homes for sale are never listed publicly.
The Home Buying Process
As you begin to think about buying a home, you're probably acutely aware that this is likely to be your greatest investment ever (short of children or a good marriage), and you might be wondering if there's anything you really need to know as you go into this process. This is where your real estate professionals come in. With the help of a trained agent, you can come out on top of a closing that might otherwise have pushed your retirement ahead a decade! This happens all the time to buyers, who are left reflecting on the relatively small commission that would have brought a Realtor into the bargain to help them.
If you'd like to know about the home buying process, we'd love to tell you all about it. Contact us!
Five Reasons to buy your home with a REALTOR®
- Get access to all the listings.
- Know all the facts on properties you're interested in.
- Negotiate with the help of a real estate professional.
- Finance your home faster.
- Make a solid investment that pays off down the road.
New homes for sale hit the market daily. As your representative, we'll be in regular contact with sellers and other real estate agents to ensure you see all the newest listings right away, whether or not they're made public. Often, our clients can put in offers with little or no competition and walk away with an impressive deal on the property of their choice. Your agent will also make sure you see only the properties that meet your needs and investment preferences, so that you don't spend time on listings that aren't of interest. As you compare the best deals, we'll provide you with important information about the home, its neighborhood, zoning issues, utilities, and nearby plans for development.
Many real estate transactions include an extensive negotiating process, and as your buyer's Agency it will be Our job to represent you here and get the best deal possible. We'll also attend property inspections, make sure any and all agreed-on repair work is carried out, and handle paperwork related to the sale. We can also help set up the financing for your invesment, and work directly with a broker to provide you with a seamless service package.
Working with a dedicated agent on your next home purchase will save you time, and add professional assurance to every step of the process. With the guarantee of a solid investment, the decision could also make you more wealthy when it's time to sell. To get in touch with us today, please contact us whenever you'd like.
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Step 1 - Define The Needs & Desires For Your New Home
Your first step toward buying your new home will be to analyze your needs. Your Realtor can help you determine exactly what you want your new home to look like and how it should function for you and your family.
First, write down your reasons for a new home. For example, are you currently renting and would like to begin building equity? Maybe you recently married and have outgrown your current residence. Or, maybe you received promotion or job transfer that requires you to move to a new city. These factors will all have a bearing on how you approach your home search.
Second, establish a time frame for buying your home. Depending on your reasons for wanting a new home and the current condition of the market in the area you are looking to buy, you should be able to come up with a rough guideline.
Finally, you probably have a visual in your mind of what your new home looks like. Turn these visuals into two lists: one should describe your dream home and the other should list features that are absolute must haves. In a perfect world, your new home would fulfill both lists 100 percent, but it is more likely the two lists will turn into a list of priorities, as you get clearer about what you want and what is available.
Step 2 - Pre-Approval vs. Pre-Qualification
Now that you know what you want and need in a home, you should find out what you can afford. There are two ways to go about this: pre-qualification or pre-approval for a loan. Either way, you can contact your Realtor about choosing a mortgage company. Pre-qualification is the simpler of the two processes. It can even be done online or over the phone. When you contact a mortgage company they will ask you for some basic information about your finances, how much money you earn, your debt load, etc. They will take this information and give you a rough estimate of how much of a loan you might qualify for.
Pre-approval is more a more in-depth process. The lender will perform an extensive check of your finances including your credit rating, whether or not you're a first-time buyer, what your debt load is, how much money you have to put as a down payment, etc. This figure will be a much more reliable estimate of what you can afford.
In most markets, pre-approved buyers are preferred over those that are merely pre-qualified. Being pre-approved lets the seller know you have gone through an extensive financial background check and there should be no unexpected obstacles to you buying their home.
Step 3 - Neighborhood Information
Now that you have your list of needs and wants and know how much you can afford to spend, it's time to look at some houses, right? Well, don't forget, you don't just buy a house; you buy the neighborhood the house is in. Think about that...if you found the perfect house but it was in a neighborhood that was not a good fit for your wants, would you make an offer on it?
You will need to make another list for the type of area you want to live in. Consider things like commute time to work and major destinations, amenities such as shopping, golf courses, grocery stores, etc., area schools and the demographics of the surrounding area.
Step 4 - Home Search
At this point you will have a good idea of what you can comfortably afford and the type of area you will want to live in. Taking that information into consideration, you are ready to embark on your home search. If you don't know much about the city to which you are moving, you will want to start by finding areas that meet your criteria and then narrowing your search to particular homes in those areas.
There are a few ways to go about this. Possibly the most efficient way to find homes is to allow your Realtor to keep you up-to-date on available properties that meet your criteria, and then allow your agent to screen them for you. When your agent presents you with a home that interests you, he or she can arrange for you to tour it at your convenience.
You can find available homes by reading local real estate publications, looking on the Internet, or driving through neighborhoods that meet your needs. Driving around a particular area looking for a home that is for sale is good because you can actually see the house, but it can be very time consuming and very "hit or miss." Here in New Jersey because of the nature of the home sale process Realtors usually wait a fairly long time before posting a under contract sign on the home for sale sign so you may become interested in a home which is already under contract.
Step 5 - Make An Offer
Now that you've found your dream home, it's time to make an offer. Your Realtor will help you determine the offer price by reviewing recent sales of homes that are similar in size, quality, and conveniences and amenities. Your Realtor will advise you on how to put together an offer that will have the best chance of being accepted.
After consultation with you, your agent will create a written proposal with your offer that meets all the local and national legal requirements. This document details what needs to be done by both parties to move forward with the transaction. It should protect the interests of both parties and will ensure your financial position as the buyer.
The contract should include, but is not limited to, the following:
1. Legal description of the home
2. Offer price
3. Down payment
4. Financial arrangements
5. List of fees and who will pay them
6. Amount of the deposit
7. Inspection rights and possible repair allowances
8. Appliances and furnishings that will stay with the property
9. Settlement date
10. Contingencies
Remember the legalities of this phase are very important. If you have any questions or concerns, be certain to address them with your Realtor right away.
Step 6 - Negotiating to Buy
Once your offer is made you may need to negotiate with the seller to reach an agreement. Keep in mind almost everything is negotiable when you are buying a house. This can give you a great deal of leverage in the buying process, that is, if you have adequate information and you use it in an appropriate manner.
Some things you may negotiate:
1. Price
2. Financing
3. Repairs
4. Appliances and fixtures
5. Closing costs
6. Occupancy time frame
Counter offers happen frequently. Remain in close contact with your Realtor so you can quickly review any changes from the seller. Remember...bargaining is not a winner-take-all deal. It is a business process that involves compromise and mutual respect; you should consider it a win-win situation.
Once all of the above has taken place, it is time to bring your real estate attorney into the picture. Both the homebuyer and home seller will have their own real estate attorneys to look over the purchase proposal and give their approvals. Your real estate attorney will serve to protect your interests as New Jersey law spells them out, and may submit addendums to the seller’s attorney with your approval.
Step 7 - Service Provider Coordination
After your offer is accepted, your Realtor will help you coordinate the activities of service providers and serve as your advocate when working with them. Your agent will make sure these vendors have access to the property to perform their procedures and will oversee the execution of those procedures on your behalf.
One service you may need is a home inspection. An inspection of the property, the foundation, and the surrounding environmental should be performed to make sure the property meets the standards set forth in your written agreement. If there are issues brought to light during these inspections, it may delay or even nullify the contract.
Insurance is another item that will need to be taken care of. Your mortgage lender will require title insurance in the amount of the mortgage you are taking. It is also highly recommended by most experts that you also purchase the homeowners portion of the title insurance as well, witch covers the amount that you are not browning. This kind of insurance is purchased at closing and protects the buyers in the unlikely event that the title to the property becomes invalid. Homeowners insurance protects against theft, fire and liabilities. It often includes things such as bicycles, furniture and jewelry. Flood insurance is generally only necessary for flood-prone areas. The federal government issues this kind of insurance.
In addition to aforementioned types of insurance, you may want additional assurance for your new home. Home warranties are one way to protect yourself after you buy. Warranties for new homes protect against plumbing, wiring and structural defects. Existing home warranties cover things like major appliances and structural problems.
Having these procedures done in a timely and professional manner is a must. Investigate each service provider to make sure they are reputable and have a clean operational history. Your agent's experience in this area will be invaluable.
Step 8 - Before You Close
As the closing date (otherwise known as settlement or escrow) draws near you will need to be in contact with your attorney and your lender to make sure all necessary documents are being prepared and will be delivered to the correct location on the appropriate date. Find out what form of payment you will need to bring to the closing for any unpaid fees. Make sure that your payment is made out to the appropriate party.
These days, buyers and sellers don't even have to be in the same room to close a deal. Thanks to computer automation, signed paperwork can be delivered overnight to both parties.
Step 9 - Closing On A Home
Closing is where ownership of the home is legally transferred from the seller to the buyer. It is a formal meeting that most parties involved in the process will attend. Closing procedures are usually held at your attorney’s office but can be held elsewhere. Your attorney coordinates the document signing and the collection and disbursement of funds.
In order for the closing to go smoothly, each party involved should bring the necessary documentation and be prepared to pay any related fees (closing costs). There may be more than one form of acceptable payment for your closing costs so ask the attorney which form of payment will be required and to whom it should be paid.
Sellers sometimes pay for a portion or all of the closing costs, depending on local market conditions, terms of the purchase contract, and the seller's cash and timing considerations. Any such concessions should be acknowledged in writing. Most lenders will allow a credit from the seller to the buyer for the non-recurring closing costs. However, they usually won't allow a credit that reduces the amount of the buyer's down payment or any of the buyer's recurring costs, such as expenses for fire insurance premiums, private mortgage insurance (PMI) or property taxes.
Step 10 – After Closing
Congratulations on the purchase of your new home!
Now that you have taken ownership and possession of it you will need to have your electricity, cable and phone set up. You actually should take care of your electricity, gas, cable, and phone before closing to make sure that they are setup on the day of closing and you don’t end up with reconnection fees should any of them disconnect. Also be aware of typical homeowner expenses such as Neighborhood Association fees, landscaping costs, and annual taxes and budget for them accordingly.
