Purchasing a new home in New Jersey is a major financial decision. One has to consider the lending, cost, local real estate market and regulations. If the process is not done correctly, a lot of issues can arise, which is why it is essential to collaborate with realtors that are professional and reliable. Below are some key steps which should always be taken when preparing to buy an NJ home.
Selecting A Realtor
An experienced realtor should be chosen before the home searching process begins. These professionals will represent your interests and will ensure you get the home you want, for the prices you wish to pay, with the fewest headaches possible. Once you’ve identified a house you’d like to buy your realtor will act as the intermediary for price negotiation and additional sale items. Most NJ realtors will draft the realtor standard contract form, which must be signed by the buyer, and which the seller can accept. Realtors make their money in the form of commissions which are payable through the seller, and while negotiable it will typically average between two and six percent of the home’s purchase price, and will be paid to them at the closing.
Drafting A Real Estate Contract
To buy a home in the state of New Jersey you must first sign an offer which is written, which will be in the form of a proposed sale contract. This contract will be submitted by your realtor to the seller. The document must include the various details of the offer being made, like the amount, property type, closing date, exclusions/inclusions, contingencies for property inspections and a contingency for the mortgage.
In order for the transaction to proceed the seller must accept the contract and sign it. Once an executed contract has been delivered to both the seller and buyer it will then be forwarded to the attorneys of both to undergone a procedure named the attorney review. This review may last as long as three days. The attorneys will evaluate the document for their respective clients to make sure it supports their goals, and it may be necessary to negotiate further protections or provisions. While the review is in process either the buyer or seller can cancel without being subject to penalties. After the review is finished both parties are under contract.
Home Inspection And Financing
Most realty contracts in New Jersey give buyers inspection rights so that they can determine if defects are present in a property. At closing it is also mandatory for sellers to provide a continued occupancy certificate and a certificate for fire inspection. A professional inspector should be hired to review the home. Most New Jersey home buyers finance about eighty percent of the cost. A variety of mortgages are available such as FHA, fixed and adjustable rate. The mortgage terms should be reviewed by the attorney so that you know the costs at closing, and whether or not the mortgage may be prepaid, and how interest will be calculated.