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 Most brokers work | - Seller's Agent Most brokers work as a Seller's Agent or as a Dual Agent |
Mortgage Pre-approval | Recommended | Recommended |
Cooperation between
| Property is available Broker cooperation is limited. Brokers cover limited areas/properties
| Listed property is available in several local Multiple Listing Systems In most cases, |
Oral Offers | Not recommended | Not recommended |
Offer Binders | 1st Step in offer process | Not frequently used |
Contract Format | Normally prepared by Seller's Attorney | New Jersey Association of Realtors Standard Form of Purchase Offer Required for all |
Contract Format | Prepared by | Prepared by |
Attorney Review | Not Required | Required |
Initial Deposit/ Earnest Money | None Required | Due at time of |
Down payment | Generally 5% to 10% of Approx. 50% | Generally 5% to 10% of Approx. 50% |
Property Inspection takes place | Before the | After the |
Inspection items negotiated | Before the |
|
Property Condition Disclosure | Required on most sales | Optional |
Mortgage | Use a New York | Use a New Jersey |
Property Taxes | Important consideration in | Important consideration in |
Condo/Co-Op Fees | Important consideration in evaluating monthly payments. Vary widely | Important consideration in evaluating monthly payments. Vary widely. |
Closing | At office of | At office of |
For more information contact:
Pamela Bell, Broker, BUYER'S ADVISORS Pam@BuyersAdvisors.com
or visit my website at: http://www.buyersadvisors.com/
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