Once you have found a single family home that you would like to purchase, there are several things that you can expect of a REALTOR(R). If the property is listed with a Multiple Listing Service (MLS), the REALTOR(R) could provide you with information on:
1. MLS history of the property (how long it has been on the market, prices changes, if any, etc.)
2. Flood zone
3. Current tax information (ask your REALTOR(R) to call the municipality to find out if the taxes on the listing are current and if they are paid to date)
4. Tax map (will show you the size of the property and may show public easements)
5. Survey (if available)
6. Zoning (may show you use of nearby properties)
Before you sign an offer you should review and sign the
1. New Jersey Department of Consumer Affairs Seller's Property Disclosure (if provided by the seller)
2. Lead Paint Disclosure (if the property was built before 1978)
Also, ask the REALTOR(R) to give you MLS information on comparable properties in the area. If the REALTOR(R) represents you as a buyer's agent, the REALTOR(R) should help you draw a conclusion of value for the property you are considering.
Once you are satisfied that the property meets your needs, you will be then asked to give a small amount of money (called the initial deposit) and sign an offer that the REALTOR(R) prepares by filling in the blanks on a preprinted form. Since this document becomes a contract once it is signed by the sellers,
Most contracts have two additional contingencies: a physical inspection and a financing or mortgage contingency.
According to the New Jersey Association of REALTORS(R) contract, the buyer has the right to inspect the property for structural and environmental defects not visible to the naked eye. It is strongly advisable that you use a
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Attorney's fee (It is strongly recommended that you be represented by an attorney)
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Title examination
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Title insurance
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Survey (remember to ask the surveyor to place stakes if important to you)
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Flood hazard certification fee
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Property Inspection fee (generally includes structural and wood boring insects inspections and a test for elevated levels of radon gas)
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Septic, synthetic stucco and well inspection fees (if applicable)
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Mortgage Application fee
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Appraisal fee
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Credit Report fee
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Miscellaneous Lender fees
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Tax service fee
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Private mortgage insurance
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Prepaid interest
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Hazard insurance
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Hazard insurance escrow
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Mortgage and Deed Recording fees
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"Mansion Tax" 1% fee to be paid by the buyers on all purchases over $1,000,000.
If the contract is contingent upon financing, it is prudent that you apply for the mortgage as soon as the contract has been approved by both attorneys. Be aware that the mortgage has a deadline date. It is also good practice to apply for property insurance shortly after the property is under contract. Banks require that every mortgaged property be covered by hazard insurance.
If you need to be referred to a mortgage bank or broker, an attorney, a licensed home inspector or any vendor (e.g. a roofing contractor), it is wise to request at least three names or companies from your REALTOR(R). Call each and interview the individual until you are satisfied that person can give you the services and/or products you need and desire.
Ask the REALTOR(R) if s/he can refer you to a "Home Warranty" company. Consider a service contract that will cover unexpected repairs for the first year you own the home. Typically, after entering into the contract and paying an initial fee, if any covered system or appliance breaks down, you would call an approved vendor for service, pay a deductible and the warranty company will pay the balance of the bill. Read the contract carefully to determine what services and systems are covered.
Get moving estimates at least three to four weeks before you plan to move. The closing date is usually a target date. The balance of the down payment must be paid by cash or certified check. Once the closing date and time is finally agreed upon by the seller, the buyer and the attorneys, your REALTOR(R) will schedule a final walk through of the property. Bring with you a list of what was included in the sale (refrigerator, window treatments or lighting fixtures, for example) and what repairs were agreed to by the sellers. Make sure the appliances and heating and cooling systems are in working condition and that the home is free of all personal items of the seller and debris.
At the closing, the seller should provide you with the keys and any garage door openers. It is always a good idea to change the locks once the house is yours!
