1. Finding a Qualified Agent
Select an Agent who has experience working with buyers and sellers and be sure they disclose their agency relationship (Buyers Agent, Sellers Agent, Disclosed Dual Agency etc..). Ask about broker vs. sales associate.
2. Obtaining a Pre Approval Letter
Be sure to obtain a pre-approval letter by a mortgage company. This will put you in good standing with a seller when trying to have your offer accepted.
3. Town Information
Obtain information on various towns within a particular county. Be sure to preview, analyze and receive as much information about a particular property/area. Review active listings, pending listings and recent sales (not older than 3 months).
4. Home Information
To speed up the process these listings can be sent to you via email. Once you have located that perfect home, read and discuss the “Sellers Disclosure Statement” which will disclose any known facts by the Seller. Both Seller and Buyer sign this form.
5. Preparing Your Offer
All offers must be put in writing. The Real Estate Contract of Sale will list important categories including price, terms, conditions & closing date etc... The offer must be accompanied by an initial deposit ($1,000), the signed “Sellers Disclosure Statement”, Mortgage Pre-Approval Letter and “Lead Disclosure Form”.
6. The Offer Becomes A Contract/Attorney Review
Once the Buyer and Seller sign the Contract, it is turned over to a real estate attorney. New Jersey has a 3 day Attorney Review Period. Your attorney will guide you through this process. This price can vary depending if you are the buyer or seller. Note: Although it is not mandatory to use an attorney within the state of New Jersey, most buyers and sellers prefer to have an attorney represent them.
7. Home Inspection/Termite/Carpenter Ant/Radon/Lead Paint/Tank Searches etc...
This process is scheduled immediately after attorney review ends. You will have 10 days to deliver the results to the seller's attorney. This report will identify the positives and negatives of a home. This process takes 2 – 4 hours depending on the size of the home and what is involved. The inspector needs to be sure there are no structural or environmental issues.
8. Smoke/Carbon Monoxide Certificates and Certificates of Occupancy
All homes must be visited by a town fire inspector to ensure compliance of smoke/carbon monoxide detectors and fire extinguishers. If they are working and placed in the correct location, a certificate will be issued. You cannot close without it. Not all towns require a C.O.; however, if they do, you must comply.
9. Bank Appraisals and Mortgage Commitment
Shortly after the home inspection process, a real estate appraiser will be hired by the mortgage company to go out to the home and submit a report on findings. The realtor can assist by providing recent sales to help support the process. The Mortgage Commitment can be issued if no problems arise.
10. Additional Deposit Dollars (10%)
These dollars are held in an interest bearing account by the Buyers Attorney or Real Estate Firm. 11. Utilities, Homeowners Insurance
All utilities (gas, electric, water, telephone, cable etc...) must be changed to the Buyers name. Coldwell Banker has a special department set up to handle this free of charge to the Buyer. This service also includes voters registration. Homeowners Insurance must be in place prior to closing.
12. The Closing
Prior to attending the closing, you will visit the house just to be sure everything is okay and as you remembered it to be. Closings are held at the Buyers attorney’s office.
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