The process of selling a home is almost the same no matter where you stay, but there are some aspects of New Jersey’s real estate practices that may be unique. It is good to be well-informed in this process to prevent hassle later on. Here is what you need to focus on when selling your home.
Finding a Real Estate Agent
Working with a licensed real estate agent is beneficial as they can help you determine the selling price of your home through a market analysis, market your home to potential buyers, review the purchase documents and negotiate with buyers.
Prior to signing a listing agreement with an agent, it is good to check out customer reviews. The best real estate agents are found through referrals.
Signing of the Listing Agreement
This agreement allows your real estate agent to market and manage the sale of your home. Listing agreements generally indicates the commission that the real estate will receive from the seller, the type of listing, the duration of listing, the list price, the items that are part of or not part of the sale and the obligations and duties of the seller as well as the real estate agent.
Real Estate Disclosures
New Jersey State Courts require sellers to disclose all known defects in the property that outsiders cannot spot with ease. Some issues that should be reported are problems with the roof; the water source and sewage system; the electrical, plumbing, cooling, heating and systems, the driveway or retaining walls; pests, etc. Additionally, if your home was constructed before 1978.
Consider Offers and Counteroffers before Signing the Purchase Agreement
Prospective buyers will make a written offer indicating their price, proposed down payment and any other contingencies. In this case, you can reject or accept the offer, or you can make a counteroffer where you accept most of the terms in the offer while suggesting certain changes, such as a higher price or earlier closing date.
A legally binding purchase agreement, specifying the key terms of the sale, is signed by both parties when a final offer is accepted. At this point, the transaction enters escrow.
Going into Escrow
This is the time where you find a neutral third party, an escrow or title agent, to oversee the tasks of writing the title reports, process loans, take out buyer contingencies and more. In this period, there may be problems that need to be addressed through negotiation, such as which party will cover the repair needs in the inspection report. If an appropriate outcome cannot be settled on, the buyer may be able to back out of the agreement.
Closing of your Home
This process generally takes place within a day. By the closing, you and the buyer would have already fulfilled the terms of the purchase agreement. At this point, the buyer pays the purchase price and receives the deed, clear title and other transfer documents to the home. You, the seller, will pay the remaining loans on your property as well as the commission to your real estate agent.
Involving a Lawyer
In New Jersey, it is not mandatory to hire a lawyer with selling a house. If you and buyer want to though, you can have an attorney inspect the purchase agreement before it is finalized. The lawyer can give recommendations for the purchase agreement or disapprove of it, as long as they review it within three days after both the buyer and seller signed it.
