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Home Buying In New Jersey Versus NYC - The Differences

By
Real Estate Agent with Buyer's Advisors

Many of my clients who come from New York or  other States are very unfamiliar with how real estate is done in Northern New Jersey. 

In an effort to explain, especially for New Yorker City residents, how things are done differently in Northern New Jersey, I prepared the simple matrix below which highlights the home buying practices where NY and NJ differ, and where we do things the same way.

While not obvious to most Home Buyers, there are major differences between New York and New Jersey in terms of:

  • the typical agency relationships agents have with their Home Buyers,
  • the level of cooperation between real estate offices/brokers and its impact on Home Buyers
  • the basic approach for making offers and getting to a formal signed and agreed contract
  • when home inspections take place and inspection items are negotiated
  • when and what various monies are due,
  • when the buyer's attorney gets involved and what they do
  • property disclosures
  • and, even where the closing typically takes place.

The following table provides my comparision of residential real estate practices in New York City and Northern New Jersey.    

Home Buying in New Jersey versus Manhattan (NYC)

- Comparison-

 

New York (Manhattan)

New Jersey

Disclosure requirements (types of real estate agents)

  

- Seller's Agent
- Broker's Agent
- Buyer's Agent
-
Dual Agent

Most brokers work
for the Seller 

- Seller's Agent
- Dual Agent
- Buyer's Agent
- Transaction Broker

Most brokers work as a Seller's Agent or as a Dual Agent

Mortgage Pre-approval

Recommended
Before viewing property

Recommended
Before viewing property

Cooperation between
real estate brokers

 

Property is available
primarily from the listing brokers
 

Broker cooperation is limited. Brokers cover limited areas/properties


Buyers  must evaluate the market in small fragments, on almost a broker-by-broker basis which makes searching all available properties in Manhattan almost impossible

Listed property is available in several local Multiple Listing Systems
to all participating realtors

In most cases,
Broker cooperation is required

Oral Offers

Not recommended
but
 Used frequently

Not recommended
or binding
Not frequently used

Offer Binders
(not a full contract)

1st Step in offer process
Used frequently

Not frequently used

Contract Format
Re-sales

Normally prepared by Seller's Attorney
from basics of an accepted Offer Binder

New Jersey Association of Realtors Standard Form of Purchase Offer Required for all
listed residential resale property

Contract Format
New Construction

Prepared by
Seller's Attorney

Prepared by
Seller's Attorney

Attorney Review

Not Required

Required
3 Business Days

Initial Deposit/ Earnest Money

None Required

Due at time of
Contract Signing

Down payment

Generally 5% to 10% of
Total Purchase Price

Approx. 50%
Due at Contract signing

Generally 5% to 10% of
Total Purchase Price

Approx. 50%
Due 10 to 15 days after Attorney Review is completed

Property Inspection takes place

Before the
 Contract is agreed

After the
Contract is agreed
and Attorney Review is over

Inspection items negotiated

Before the
Contract is agreed


After the
Contract is agreed
and Attorney Review is over

Property Condition Disclosure

Required on most sales
Prepared By Seller

Optional
Prepared By Seller

Mortgage

Use a New York
licensed lender

Use a New Jersey
licensed lender

Property Taxes

Important consideration in
evaluating monthly payments. 
Vary widely.

Important consideration in
evaluating monthly payments. 
Vary widely.

Condo/Co-Op
Fees
Important consideration in
evaluating monthly payments.
Vary widely
Important consideration in
evaluating monthly payments. 
Vary widely.

Closing

At office of
Seller's Attorney

At office of
Buyer's Attorney

For more information contact:
Pamela Bell, Broker, BUYER'S ADVISORS Pam@BuyersAdvisors.com
or visit my website at: http://www.buyersadvisors.com/