The home buying process differs from region to region. Let me put my 23 years of local real estate experience to work for you! I have written a general outline of the home buying process in the Suburban Essex, Union and Morris County area and posted it below. Please call or e-mail if you have any questions or concerns. I'm here to help! 

BUYING A HOME 

Your Price Range  

The first step to buying a home is to know your price range. Knowing what you can spend will allow me to best assist you in finding the right home, neighborhood and town in your budget. I work with buyers in all price ranges and give all buyers the same expert quality service. If you haven't already secured a pre-approval from a lender, you may want to do so before you begin your search. If you would like contacts for lenders please contact me and I will refer you to several different people who have helped some of my past customers.  

WHERE TO LIVE 

Train Line 

Once you know how much you are looking to spend on a home, I will be able to educate you on the different towns in our area. Towns along the train line tend to be the most expensive. If you don't commute into the city via train or are willing to drive to a neighboring town to catch a train you may find you can get more house for you money in a town off the train line. If you need quick access to the train line there are several towns in the area that offer condos and single-family homes within walking distance to the train. Maplewood offers a convenient jitney service to and from the train station for residents who live a bit further from the train or for those who wish not to walk, especially in inclement weather. For train schedules, commute times and to see which towns are on the train line you may want to look at the NJ Transit homepage at http://www.njtranist.com/.  

Choosing a Town…or Two. 

Each town has it's own character and flavor. You'll want to spend some time in each town to get to know which towns feel right for you. If you are familiar with the area, you may already know which towns you would like to live in. If you are unfamiliar with the area you may want to consider contacting us to schedule an area tour. If you live in the city, I can pick you up from the train station, give you a tour of the area and perhaps you'd like to have lunch in one of the towns and walk around to get a feel of what the town is like. Since the train stations are typically centrally located in each town, once you've met with us for an area tour, you can hang out in one of the towns at your leisure and walk to the train from there.  

School Systems 

In general, all the schools in the area are well ranked. A few of the top ranking public schools in the state are located locally and there are also several exceptional private schools in the area. Choosing a school really depends on what parents are looking for. Maybe it is important to you that a sports program is strong, the school system offers a specific language course, has a theater arts program, ranks high in academics, or is diverse. I encourage you to contact the schools directly to schedule a tour and meet with administrators and teachers. For those numbers please contact us. You may also want to research school through various online sites like the State of New Jersey's Department of Education site (http://www.state.nj.us/njded/data/).  

Real Estate Taxes  

Since real estate tax amount differ by town, a buyer's price range may also differ by town. Typically, real estate taxes are higher in Essex County than in Union and Morris counties. Within Essex County, taxes vary by town. For example (a very general example), where a single family home priced around $550,000 the real estate taxes in Maplewood might be $11,000, in Millburn they would be $8,000 and in Summit they might be $6,700. On the other hand, there are many homes to choose from in Maplewood in the $500,000s and very few in Millburn or Summit. Additionally, where $550,000 may get you a good size single family home with updates and renovations in Maplewood, the same priced home in Millburn most assuredly will need lots of work and will be quite small.  

Unless you know exactly which town you want to live in, it may take a few trips to the area to determine which town is right for you. It may be best to take an area tour and view homes in a variety of towns to narrow your search down to a couple of towns.  

FINDING YOUR DREAM HOME  

Once you've determined your price range and narrowed your search to a couple of towns you are ready to find you dream home. If you are a first time home buyer, I always encourage people to think of their first home as a home that should fight their current needs. The days of buying a home and living in it for thirty years are long gone. Typically people stay in their first home for anywhere between 2-5 years. After this time, homeowners decide they need a larger home, would like to live in a different part of town or both. If you are looking to buy your first home, keep this in mind because you don't need to find the home that is absolutely perfect, it just needs to be the right home for your current needs.  

"I'll Never Live in a Tudor"  

The famous last words of buyers who love their first home…which happens to be a Tudor! While you may rule out a certain style of home be open to at least looking at something that isn't what you think you're looking for. I have learned over the years to pinpoint what a buyer is truly looking for even if they insist that they'll never buy a Tudor, a bi-level or an older home or only want a Tudor. These buyers often buy what they say they never will. Why is this? Because ultimately, beyond the style of house, the home has what they are really looking for. A Tudor may have the layout of a center hall colonial and it's the layout and flow that is more important than the exterior. Or, a Bi-level may offer the openness and airiness that a buyer really wants above everything. Or an older home may have a beautiful new kitchen, new baths and new plumbing which is exactly what the buyer is looking for. Everyone is certainly entitled to have preferences in house styles but it's our advice to buyer to keep an open mind and never say never.  

MAKING AN OFFER 

You've found the right house, now what? In order to make an offer on a home you'll need to do some paperwork. I will assist you in filling out a Contract of Sale along with all of the other required forms. Once the paperwork is finished, I submit these forms a long with a buyer's pre-approval letter from the lender and a deposit check. Deposit checks can legally be any amount you wish but typically in our area, at least, that the amount is $1000. This money indicates to a seller that the buyer is earnest.
If the seller agrees to the offering price and terms, they sign the Contract of Sale and copies go to each agent involved and to the buyer's attorney and seller's attorney.  

Deposit  

All deposit money is held in escrow until closing. Typically the money is held in the buyer's name by the seller's attorney in an interest bearing account. The initial deposit submitted with the contract is deposited after the completion of attorney review. The additional deposit is due within ten days of the end of attorney review. Deposit checks can be given to your agent or directly to the seller's attorney.  

Mortgage Contingency  

In the Contract of Sale there is a clause for a mortgage contingency. If the buyer is obtaining a mortgage they will have to meet this contingency or waive it altogether. The buyer will be asked to obtain a mortgage commitment within an agreed upon period of time, typically 2-3 weeks. This time period begins from the end date of attorney review. During this time frame the mortgage company will send out an appraiser to the home. They may ask the buyer's agent for comparable sales in the area to substantiate the sale price of the home. Once the house appraises and the mortgage paperwork processed, the buyer will be informed that their mortgage has been approved. At this time, the mortgage commitment has been made and the contractual mortgage contingency has been met.  

While mortgage contingencies are standard practice, it is common for the seller to ask the buyer to waive this contingency in a multiple bid situation. Willingness to waive this contingency says to the seller that the buyer is absolutely confident of obtaining the required financing.  

ATTORNEY REVIEW 

Although, it is not legally required to use an attorney to execute a Contract of Sale it is customary and strongly encouraged. It is advised that you use an attorney who specializes in real estate and preferably is local. A local attorney will know the ins and outs of local real estate rules and regulations that can vary by town. Local attorneys also have reports with other attorneys in the area and this can facilitate the process. In a addition, since the closing is at the buyer's attorney's office, it's easier if you don't use a family friend or relative who lives over an hour away. If you need assistance in finding a qualified attorney please ask us. There are a number of good attorneys in the area that agents from all firms recommend regularly.  

Once the contracts are signed and received by both attorneys, Attorney Review has begun. Attorney Review typically lasts three days or so but can be done in a day or over the course of a couple of weeks depending on the parties involved. Usually the attorneys go back and forth about certain language in a contract and make sure that everything that was agreed upon verbally is correctly stated in writing. During Attorney Review either parties may cancel the contract without repercussion. This allows buyers to free themselves from the contract if they get cold feet or for any other reason. However, it also allows a seller to accept another offer if the offering price or terms are more advantageous.  

Attorney Review ends when both attorneys have signed off on the contract. Once this happens, the listing is now termed "Pending," and the initial deposit that was submitted with the Contract of Sale is now deposited. The entire first deposit, less the initial deposit, is typically due within ten days of the end of Attorney Review. For example, if you submitted $1000 with your Contract of Sale and you are putting $20,000 down as your first deposit, $19,000 will be due within 10 days of the end of Attorney Review.  

HOME INSPECTIONS 

Home inspections are not required by law but are strongly encouraged. It is rare that anyone wouldn't do a home inspection. Except in the case of new construction, there is no reason not to do one. For names are qualified Home Inspectors please ask me. Typically one schedules a home inspection once attorney review begins. You can try to do the inspection during attorney review in case any major problems arise, you can easily cancel the contract.  

You'll want to be present for the home inspection so make sure to schedule it at a time that is convenient for you. Expect a home inspection to take several hours. Depending on the condition and size of the home it may last anywhere from one and a half hours up to three or more hours. Two hours is more or less typical. Costs of home inspections vary but are roughly around $350-$400. Buyers are welcome to accompany an inspector in order to learn about the home but most inspectors appreciate for the sake of time to be left to do their work and will take breaks to update you as he or she completes each section of the home. The inspector will look at the exterior of a home, the roof, the garage, the home's systems, look for anything from signs of water in the basement to a lose faucet handle.  

I will accompany you to the home inspection but please know that for legal reasons salespersons do not get involved in any way. While home inspectors carry liability insurance, real estate agents are not covered when it comes to things they may or may not see or say during an inspection.
Once the home inspection is complete the inspector will arrange to get the report to you, your agent and your attorney. Your attorney will discuss with you any issues that arise in the inspection report and will advise you on how to proceed. In most cases, the seller is given the option of making necessary repairs which can later be checked by your inspector or offer you a monetary credit at closing for you do make the repairs yourself. Typically, this is up to the buyer.  

CLOSING 

Prior to closing, the buyer does a "walk through" to make sure the condition of the home is acceptable. This is typically done an hour or so before the closing but can be done the day before. This allows the buyer to address any last minute issues. An example of an issue that may arise is that the home is left dirty or patio furniture was left in the basement. In one case, movers had removed a washer and dryer that was supposed to be left unbeknownst to the seller.
The exact date and time of the closing are agreed upon by all parties and typically takes place at the office of the buyer's attorney. At closing the buyers spend most of the time sorting through mortgage paperwork.  

Whatever the case, the result is that title to the property is transferred from seller to buyer. The buyer receives the keys and the seller receives payment for the home. From the amount credited to the seller, the closing agent subtracts money to pay off the existing mortgage and other transaction costs. Deeds, loan papers, and other documents are prepared, signed and filed with local property record offices.  

Before closing, buyers typically have a final opportunity to walk through the property to assure that its condition has not materially changed since the sale agreement was signed. At closing itself, all papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes.  

*Subject to errors and omissions. This is intended as a general guide to buying a home in my area. If you have any questions please ask me or consult a real estate attorney.
 

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