How to Buy a House in NJ & NY

Step 1: Finding the right home (and town)

The Search: Use the “Our Towns” tab to find which neighborhood is right for you. Then we’ll find the right home for you. Our office has a large portion of the market share in our area which means we have access to many homes that are not publicly marketed (aka “off-market exclusives”).

• Setting Expectations: secure a pre-approval to know just how much you can comfortably afford.

• Due Diligence: Carefully examine the Seller’s Disclosures and Lead Paint Addendums. Verify property details (local zoning, liens, or easements).

Step 2: The Offer & Contract

Once you find the perfect home, we will submit a formal offer. In New Jersey, real estate agents use a state-standard contract. When both you and the seller sign it, the contract is "executed," but it is not yet legally binding. This leads into the most critical phase of a Jersey deal.

Step 3: The 3-Day “Attorney Review”

Unique to New Jersey, the three-business-day Attorney Review window begins once the signed contract is delivered.

• Protection: During this time, your attorney or the seller's attorney can cancel the contract for any reason or propose changes.

• The Process: Attorneys typically "disapprove" the standard contract to add a "Rider" that protects your specific interests (inspections, mortgage terms, etc.).

• Status: You are not officially "Under Contract" until both attorneys agree on the final language and formally exit the review period.

Step 4: The 10% Deposit

It is local custom in our area for buyers to provide a 10% deposit (minus your initial earnest money). This is typically due within 10 days of exiting Attorney Review and is held in a secure escrow account until closing.

Step 5: Inspections

Thorough inspections are vital. Your contract will typically allow a specific window for:

• General Home Inspection: Structural, mechanical, and electrical systems.

• Radon Testing: Common in New Jersey; remediation is a standard procedure if levels are elevated.

• Termite & Pest: A "Wood Destroying Insect" report is usually required by lenders.

• Oil Tank Sweep: A critical NJ step to ensure no abandoned underground storage tanks exist on the property.

Step 6: Understanding Closing Costs & Taxes

A Note on the Graduated Percent Fee (Formerly Mansion Tax): In the past, buyers of homes over $1,000,000 were responsible for a 1% state tax at closing. Under current New Jersey law, this responsibility has shifted to the Seller. For buyers, this represents a significant reduction in closing costs on high-end properties.

Step 7: Mortgage Commitment

If you are financing, your lender will order an appraisal to verify the home's value. You will work toward a "Mortgage Commitment Date"—the deadline by which the bank officially agrees to fund your loan based on a final audit of your finances.

At this time you should:

• Finalize Homeowners Insurance: Ensure your policy is active prior to closing.

• Transition Utilities: We provide a list of local providers to help you transition accounts smoothly.

Step 8: The Final Walkthrough & Closing

Shortly before the closing, we will visit the house together to ensure it is in "broom clean" condition and that all agreed-upon repairs have been completed. The closing itself usually takes place at an attorney's office, where you sign the final paperwork and receive the keys to your new home!