Buyers
It is an ideal time to buy residential real estate in New Jersey for several key reasons.
Mortgage rates are at a historical low which means “money is cheap.” Borrowing money when rates are just under 4% means a huge break on mortgage payments. For example if rates were to increase just 1% , for every $100,000 of borrowed money you will pay $21,000 more over the life of the mortgage.
In addition to rates being so low, it is also an important moment to consider buying as the turn around in the NJ real estate market has just begun. The number of sales contracts (homes sold) has been on an upward swing since May 2011. However, in the last few months it has accelerated. More sales=less available inventory = prices will start to go up. Because the market had so much inventory the prices will not probably go up until 4th quarter or early 2013. In January and February 2012 the number of sales contracts has exploded. In February it was the most number of sales in 4 years (just before the meltdown). For more information on the market in NJ click here.
The buying process can be broken down into 4 general stages.
- Evaluate Your Life & Finances – Take a good look at your financial situation and crunch some numbers to see if the time is right for you to buy.
- Shop For a Loan – If you have made the decision to move forward it is time to understand what your options are for borrowing. Gather your financial documents (i.e. tax returns, investment/bank statements etc.) and speak with lenders, mortgage brokers etc. to help you determine what you can afford, and what type of mortgage works best for you.
- Find A House – Begin your search by location; distance to work, family etc. Draw a circle around the destination and move it out equally on all sides by 10-20 miles. The towns within it are a good place to start. Reaserch the various neighborhoods online, and speak with colleagues and friends. Once you narrow it down it is an ideal time choose a Realtor who can make the process far less burdensome.
- Close the Deal – Your agent will represent your interests in the negotiations. As a buyer’s agent the Realtor has a fidicuiary responisilbity only to you and to get you the best possible price and terms. Once both parties agree to the contract and sign it, the closing stage officially begins which includes a home inspection, appraisal, title search (make sure property is clear of liens etc.),and purchasing home owner’s insurance.
 |
 |