Buying Selling Basics in Homes for Sale is something to review before any serious decisions are made. Having a clear Title is just as important as a Mortgage. Buyers must be sure they can get a Mortgage. However, a Seller must be sure they can present a clear Title at settlement - with no unforeseen liens, penalties, etc.
In Southern NJ, we operate under a "Time is of the Essence" Contract.
Each County has a different contract and must be explained carefully. However, we all are obligated to perform whatever has been agreed to by certain dates. If a date passes without a requirement being performed, be aware that your Contract of Sale may be voided!
Be sure to discuss all these variables with your experienced Realtor.
Before you start looking for that new home to purchase:
The Buyer is typically obliged to be responsible for:
The sellers biggest obligation is to be sure they can present a "clear Title" at the settlement table. The selling price of the house must be higher than all expenses incurred to sell the house. Many people sell their home with an outstanding balance still owed on their mortgage of their house. That's perfectly normal.
Aside from the possible mortgage balance due, the next biggest expense for the seller will be the commissions due to the Brokerage Firm(s) for selling the house. This fee is usually split 50/50 with the two different Brokerage Houses that Sell and Buy your home. The actual Agent(s) of each side will get a percentage of that fee from their Brokerage House(s).
Any unpaid Taxes, HOA Assoc dues, etc. must be available from the proceeds to be paid as well. Once all these items are cleared for the sale, the Seller really just needs to sign the Deed over and get paid the excess proceeds from the sale of their house.
FHA Fees are negotiable between all parties. However, any FHA repairs become a very "gray" area during the process. Many Buyers enter a very risky area when they pay for and do FHA mandated repairs before settlement can occur. Remember, the house will not be yours until AFTER Settlement!
The Title Insurance Company is in charge of the entire settlement process. They will first determine if there are any liens on the property and "clear the Title". They will also determine what fees are still owed on the Mortgage(s), various Taxing Agencies, Home Owner Associations, Utilities, etc.
The Title Insurance Company will furnish a standardized form called a HUD-1. This form will illustrate every penny of the proceeds, how it is paid out and to whom. All parties will sign this and get copies as well.
Foreclosure Information. That is certainly a very unpleasant situation for a Homeowner. Even though you may be a Buyer and looking for that "perfect" foreclosure, please try to be mindful of the person living in that house and the situation that are trying to handle.
Short Sale Information. These can bring what should've been a sale of a house to an absolute stand still - very quickly!
HUD Programs. The Department of Housing and Urban Development has a variety of programs to help people buy homes.
HomePath Financing. HomePath Financing is available for homes that are Fannie Mae owned through foreclosures.
FHA Loans. The FHA Loan Program is extremely helpful for first time buyers or people with a minimal amount of money to put down.
The NJ Real Estate Transfer Tax is updated and changed several times
during the last 10 years. As a result, we are posting a link to their
site directly for all information about NJ Realty Transfer Tax.
All of these various Buying Selling Basics in Homes for Sale need to be covered. It will be difficult to complete a successful and binding Contract if these buying selling basics aren't met. Buying a Home should be a fun occasion and minimal stress. Selling a home should be just the same.
As your South Jersey Realtor, I will do my best to be sure your Real Estate Transaction is as stress free as possible!
Please Contact Us if you need assistance or have any questions.