Selling your home especially in New Jersey is not as easy as some people might think. The state’s unique real estate practices and laws make the process slightly different and a bit complex. In summary, the process of selling real estate in New Jersey can be broken down into three major steps:
Working with A Certified New Jersey Real Estate Agent
Real estate agents make selling property way easier. A good real estate agent can price your house in comparison to market analysis, market your house effectively to potential buyers, and handle other tasks like handling negotiations with buyers and reviewing house purchasing documents.
Signing a Listing Agreement in New Jersey
Once you have found the right agent for your needs, a listing agreement will be signed to give the agent the permission to handle and market the sale of the house. A listing agreement normally covers the following terms:
- The commission paid to the real estate agent, usually ranging from 5-6% of the total house sales price. This commission is typically split between the buyer’s agent and your real estate agent.
- The type of listing which can be an exclusive right to sell listing, an open listing or an exclusive agency listing.
- The amount of time covered by a listing, could be from 60 to 90 days.
- The list price recommended by your realtor. This figure is based on the price that will best attract buyers and in comparison to other similar homes sold within your area.
- Items excluded or included in the sale for example built-in dishwashers.
- Obligations and duties of the real estate agent and seller.
Making Real Estate Disclosures in New Jersey
According to New Jersey real estate laws, sellers are obligated to disclose any material defect in the property that others cannot observe. The New Jersey Association of Realtors offers a disclosure form that includes property details such as:
- Sewage system and water source.
- Age of roof and any replacements.
- Problems with electrical heating, plumbing and other mechanical systems.
- Environmental conditions like presence of asbestos, pest infestation and other hazardous materials.
- Problems with retaining walls, driveways and other structural components.
- Legal issues like homeowner’s association involvement, zoning violations and the building codes relevance.
Responding to Offers and Counteroffers
If a buyer is interested in buying your property, they will make a written offer listing down the price, down payment and a satisfactory inspection report carried out by an inspector of the buyer’s choice. You can choose to reject the offer, accept it or respond with a counteroffer of your own. After you accept the final offer, a purchase agreement is formed- this agreement contains key details such as the final agreed-upon price, financing terms, closing date and dispute resolution.
Entering Escrow
Escrow is the period between signing the purchase agreement and closing on the house. Escrow is more stressful on the buyer than it is on the seller. This is because during this time, the buyer needs to finalize the financing, appraise the house, as well as remove all contingencies.
Closing of Your New Jersey Home
The close of an escrow means you and the buyer have fulfilled the terms of your purchase agreement. Closing normally takes one day and during this time, all the remaining costs are paid and documents signed. The buyer is given a deed, indicating the complete transfer of ownership from buyer to seller.
Selling your New Jersey should not be a hard task. At NJLux, we are ready to guide you through this process and make it as smooth and as fast as possible. Contact us to get started today.
