Home Buying Process

Buying a home is an exciting and rewarding process that when executed properly will yield many fond memories for years to come. Like all projects however, its important to understand the process and address any questions in advance with your NJ Realty REALTOR professional. Shown below is a general breakdown of what you can expect.

1. Locate Your Home!

a. Identify your primary & secondary home requirements

b. Discuss and review your requirements with your NJ Realty REALTOR

c. Discuss NJ Agency Regulations (Buyer, Seller, Dual) with your NJ Realty REALTOR

  • Sign the non-binding Agency disclosure form
  • d. Obtain a Mortgage Prequalification from an experienced Mortgage Broker

  • NJ Realty can provide lists of Brokers in your area
  • e. Review home listings and visit homes

    f. Consider the alternatives

    g. Review any available home disclosures, survey and other information.

    h. Considering home condition, investment requirments, taxes, association fees & possible expansion limitiations.

    i. Make you Top Home Selection, trying not to comprimize on your primary requirements.

    2. Make an Offer:

    a. Request a prequalification from the Mortagage Broker for the offering price of the desired property.

    b. If necessary, ask your Mortgage Broker for a written estimate of costs.

    c. Prepare Offer to Purchase with supporting documentation, prepared by your NJ Realty REALTOR, containing:

  • offering price
  • downpayments
  • closing date
  • special provisions
  • d. It will also include important supporting documents as well, typically:

  • Seller's Disclosure stating the condition of the home, as known by the home owner
  • Sign Opinion 26, discussing the importance of obtaining legal council when purchasing a home
  • Sign other disclosures if applicable (dual agency, flood zone, lead paint warning, others)
  • 3. Finalize Offer

    a. Many of us find negotations difficult and frustrating. Here are a few tips:

  • Expect a multi-step exchange processes
  • Plan a strategy with your NJ Realty REALTOR leading you towards a desirable outcome
  • Strategy can involve pricing, terms, closing timeframe and improvements
  • A wise negotiation strategy is to find a Win-Win middle ground, often preventing either party from faltering on the sale.
  • 4. Attorney Review

    a. Attorney review takes a minimum of 3 days, whereby either party may cancel at any time

    b Attorney's Receive Contracts and Negotiate a "Rider" (a set of changes to the contract).

    c. Both parties sign Rider

    d. During Attorney Review, the selling REALTOR can, but does not have to, mark the listing as such:

  • having the listing marked in attorney review potentialy reduces additional showings & interest.
  • e. At the completion of attorney review, the home is under contract and is marked as such.

    f. Once under contract, usually the home is removed from popular Websites & showings stop:

  • Homes purchases with a "for sale contingency" may be an exception to this, discuss this with your NJ REALTOR.
  • 5. Events after Attorney Review:

    a. Home Inspection Window (typically 10 days)

    b. Countdown to produce Second Deposit as agreed upon in the contract (typically 10 days and 5-10%)

    c. Countdown to produce Mortgage Approval (typically 30 days)

    6. Home Inspection

    Includes a fee for Radon and Termite Inspections, but Chimney and Pool inspections are managed seperately

    a. Conducted by a NJ certified Home Inpsector, this provides information about the maintenance needs, condition & concerns

    b. At the conclusion of the inspection, you will receive an inspection report

    c. Based upon the report, you may seek to negotiate repairs if applicable:

  • Negotiations are either managed by your attorney, your NJ Realty REALTOR, or both, at the discretion of you and your attorney.
  • 7. Attorney related Activities:

    a. Title Search completed to verify that the Title is clear of any related leins, special provisions, obligations or claims

    b. Survey this shows your property size, boundaries, home footrprint, as well as disclosing any special land considerations and easements:

  • This is paid for by you, but if the Seller's Survey is less than 10yrs and there has been no home improvements, you may be able to use the pre-existing one.
  • 8. Mortgage Approval

    a. Before issuing, a completed Home Appraisal will be performed as requested by your Mortgage Broker

    b. A NJ certified Appraiser prepares a statement showing the home value:

  • Discuss your rights and responsibilities if the Appraisal is not in-line with expectations with your NJ Realty RELATOR and your Attorney.
  • 9. If applicable, other considerations include:

    a. Verifying the finacial stability of the Home Association, noting membership fees, monthly fees and special assessments.

    b. Paying Title Insurance and for homes over $1,000,000, the applicable NJ Mansion Tax surcharge.

    c. Obtaining Home Insurance.

    d. Reimbursing the Seller for the balance of their quarterly tax prepayment

    10. Closing!

    b. Transfer all Utilities to your account.

    b. Perform a Home Walkthrough the day of Closing, coordinated by your NJ Realty REALTOR:

  • Here you will verify that the Home is as expected & that any agreed upon repairs have been performed.
  • c. Obtain and review your HUD statement including all costs, credits & the final payment due at closing

    d. Obtain a certified check for the amount of money due at closing

    e. Meet at the agreed upon office with your Attorney & NJ REALTOR to perform the closing Congratulations!

    *This is an overview of the purchase process and is subject to errors and ommissions. Also, every transaction is different, so the process can vary. Be sure to address any questions you may have with your NJ Realty licenced REALTOR.