Home Buying Process in New Jersey

Summary

In 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.