Home Buying Process in New Jersey

Jackie Baker

17 Nov 202110:49

Summary

TLDRIn this video, realtor Jackie Baker walks viewers through the home buying process in New Jersey, from offer acceptance to closing. She explains the standard real estate contract, attorney review, contingencies like inspections and mortgage commitments, and the importance of a clean title. Jackie also covers the final walk-through and potential issues that may arise, emphasizing the collaborative efforts between buyers and sellers to resolve them. The video is a comprehensive guide for those considering purchasing a home in New Jersey.

Takeaways

🏡 The home buying process in New Jersey involves several steps from offer acceptance to closing.
📝 In New Jersey, a standard real estate contract is used which includes details like offer price, deposit, and inspection contingencies.
✅ Once an offer is accepted, the contract goes to the buyer's and seller's attorneys for review, which typically takes about three days.
🔄 During attorney review, the contract may be disapproved and modified through an addendum before both parties agree.
💸 Sellers can still accept higher offers during the attorney review period, potentially causing the initial offer to fall through.
🔒 Being 'under contract' means the property is no longer actively for sale and the seller cannot entertain other offers.
🕒 Home inspections, including standard checks and tests like radon, must be completed within a specified period, typically around 14 days.
🏠 If issues are found during inspection, negotiations between buyer and seller take place to resolve them, which could lead to deal termination.
💼 After the inspection contingency, the buyer works on securing a mortgage commitment, which assures the seller of the buyer's financial capability.
🔍 A title search and survey are conducted to ensure there are no liens, encroachments, or zoning issues with the property.
📑 Closing involves signing numerous documents, paying closing costs, and a final walk-through to ensure all is in order before the property transfer.

Q & A

What is the first step after an offer on a house in New Jersey is accepted?
-The first step after an offer is accepted is attorney review, where both the buyer's and seller's attorneys review the contract and make any necessary modifications.
Can a seller accept a higher offer during the attorney review period in New Jersey?
-Yes, during the attorney review period, a seller can still accept a higher offer if it is submitted. If the seller accepts a higher offer, the original buyer may be asked to match the offer or risk losing the property.
What is the typical timeframe for the attorney review process in New Jersey real estate?
-The attorney review process typically lasts about three days, but it can sometimes extend longer, depending on factors such as holidays or the attorneys' availability.
What happens if the seller does not agree to make repairs suggested by the buyer's inspection?
-If the seller does not agree to make repairs or issue a credit for issues found during the buyer's inspection, the deal can fall apart. The buyer may choose to walk away if they are not satisfied with the seller's response to the inspection findings.
How long does it usually take to get a mortgage commitment after going under contract?
-It typically takes about 30 days to get a mortgage commitment after going under contract. This is a crucial part of the process as it assures the seller that the buyer is approved for a loan.
What is the purpose of a title search in the home buying process?
-A title search is conducted to ensure there are no liens, unpaid taxes, or other mortgages tied to the property. It verifies that the title is clean before proceeding with the sale.
Why is a survey ordered during the home buying process in New Jersey?
-A survey is ordered to confirm that the property does not have encroachments, easements, or zoning issues, and to ensure the boundaries and property lines are accurate.
What is involved in the final walk-through before closing on a house?
-During the final walk-through, the buyer checks that all is in good working order, including lights, appliances, faucets, and that any agreed-upon repairs from the inspection have been made.
What happens if an issue is discovered during the final walk-through in New Jersey?
-If an issue is discovered during the final walk-through, it can be brought up at the closing table. The attorneys may hold money in escrow until the issue is resolved, or the seller may provide a check to cover the repair costs.
Where do closings typically take place in New Jersey, and what is the process like?
-Closings in New Jersey typically take place at the buyer's attorney's office. It involves signing numerous documents, and while it can be lengthy, it is the final step in the home buying process.

Outlines

00:00

🏠 Home Buying Process in New Jersey

The paragraph introduces the home buying process in New Jersey, emphasizing its uniqueness compared to other states like New York. Jackie Baker, a realtor from Bergen County, outlines the steps from offer acceptance to closing. She discusses the standard New Jersey real estate contract, which includes legal terms and conditions, offer price, deposit, down payment, mortgage details, and inspection contingencies. Once the offer is accepted, the contract goes to the buyer's and seller's attorneys for review, which can take up to three days or longer. During this attorney review, other offers can still be submitted, and the seller can accept a higher offer, potentially causing the deal to fall through. The paragraph also mentions the possibility of the deal falling apart during this phase and advises patience and understanding of the process.

05:01

🔍 Inspections and Negotiations in the Home Buying Process

This paragraph delves into the inspection phase of the home buying process, which must be completed within 14 days of the contract going under review. It includes standard home inspections, oil tank sweeps, septic inspections, radon testing, and mold testing. If inspections are not completed within the specified time, the buyer must accept the house 'as is'. After inspections, any issues are reported to the attorney, who negotiates with the seller's attorney for repairs or credits. The paragraph highlights the potential for deals to fall apart over inspection issues if the seller refuses to make repairs or issue credits, and the buyer decides to walk away. It also discusses the mortgage commitment process, which should start immediately after the contract is under review, and the typical 30-day wait for approval. The importance of a clean title search and survey to ensure there are no liens, encroachments, or zoning issues is also mentioned, with the possibility of the deal falling apart if these conditions are not met.

10:02

📚 Closing the Deal: Final Walkthrough and Closing Table

The final paragraph discusses the closing phase of the home buying process. It explains that a few days before closing, the buyer receives updated figures for closing costs, including attorney and bank fees. The final walkthrough is conducted to ensure the property's condition is as expected, and any repairs agreed upon are completed. If issues are found, they can be addressed at the closing table, where attorneys may hold money in escrow until the issue is resolved, or the seller may provide a check for the repair costs. The paragraph assures that despite potential disagreements, most closings are successfully completed. Jackie Baker concludes by inviting viewers to watch another video for further insights and thanks them for watching.

Mindmap

Keywords

💡Home Buying Process

The home buying process refers to the series of steps a buyer must navigate to purchase a property. In the video, this process is outlined from the acceptance of an offer to the closing, highlighting the various stages such as attorney review, inspections, mortgage commitment, and title search. The video aims to educate viewers on what to expect when buying a house in New Jersey, emphasizing the importance of understanding each step to ensure a smooth transaction.

💡Attorney Review

Attorney review is a phase in the home buying process where the buyer's and seller's attorneys scrutinize the contract to ensure all legal aspects are in order. The video mentions that this step typically lasts about three days but can vary. It's a critical phase as it involves contract disapproval, modifications, and addendums, which must be agreed upon by both parties before proceeding to the next steps.

💡Under Contract

Being 'under contract' signifies that the buyer and seller have a binding agreement, and the property is no longer actively listed for sale. The video explains that once under contract, the property status changes to 'pending' on real estate platforms, and no further offers can be submitted. This phase provides a sense of security to the buyer, as the seller is committed to the sale.

💡Home Inspection

A home inspection is a crucial part of the home buying process where a professional evaluates the condition of the property. The video specifies that inspections, such as for the house's structure, oil tank, septic system, and radon, should be completed within a certain timeframe, typically around 14 days from going under contract. Inspections are vital as they can reveal issues that may affect the sale or require repairs.

💡Mortgage Commitment

A mortgage commitment is a formal assurance from a lender that they will provide a specified loan amount to the buyer, subject to certain conditions. The video emphasizes the importance of obtaining this commitment, which can take about 30 days, as it reassures the seller of the buyer's financial capability to complete the purchase.

💡Title Search

A title search is conducted to verify the property's legal ownership and ensure there are no liens or encumbrances on the title. The video describes how an attorney will initiate this search with a title company to confirm a 'clean title,' which is essential for a successful property transfer.

💡Survey

A survey is a detailed plan that outlines the boundaries of a property and identifies any potential issues such as encroachments or zoning violations. The video mentions that while sellers may provide an old survey, it's common for a new one to be ordered to ensure the property's boundaries and conditions are accurately represented.

💡Closing Costs

Closing costs are the various fees associated with finalizing a real estate transaction, including attorney fees, bank fees, and recording fees. The video explains that buyers will receive updated figures from their attorney a few days before closing, detailing the exact amount needed to complete the purchase.

💡Final Walk-Through

The final walk-through is a pre-closing inspection of the property by the buyer to ensure everything is in order and any agreed-upon repairs have been made. The video describes this as an opportunity to check the home's condition and operation of utilities and appliances, with any issues potentially being addressed at the closing table.

💡Closing Table

The closing table refers to the location where the final paperwork for a real estate transaction is signed and the property's ownership is transferred. The video depicts this as a significant and often emotional event, where the buyer signs numerous documents and the transaction is completed, marking the end of the home buying process.

Highlights

Understanding the home buying process in New Jersey is crucial for prospective buyers.

Jackie Baker, a realtor in Bergen County, provides an overview of the home buying process in New Jersey.

New Jersey uses a standard real estate contract filled out by real estate agents.

Once an offer is accepted, the contract goes to both the buyer's and seller's attorneys for review.

Attorney review can last from one day to over a week, depending on various factors.

During attorney review, the contract may be disapproved and modified through an addendum.

Offers can still be submitted to the seller during attorney review, potentially leading to a higher offer being accepted.

Once under contract, the property is no longer active on MLS and cannot receive new offers.

Home inspections, including standard checks and optional tests, must be completed within a specific timeframe after going under contract.

Inspection reports lead to negotiations between the buyer and seller regarding repairs or credits.

The deal can fall apart over inspection issues if an agreement cannot be reached.

Mortgage commitment is a critical step, ensuring the seller that the buyer is approved for a loan.

Title search and survey are conducted to ensure there are no liens or encroachments on the property.

Closing costs, including attorney and bank fees, are detailed by the attorney a few days before closing.

The final walk-through is conducted to ensure the property's condition matches the agreed-upon state.

Issues found during the final walk-through can be resolved at the closing table.

Closings usually take place at the buyer's attorney's office, where numerous documents are signed.

Despite potential issues, most closings are successfully completed after negotiations.