Buying a Condo in New Jersey - Essential Guide

Condo living has often been the bread and butter of large metropolitan areas. The lack of space and buyer demand gave way to many high rises that boast top-of-the-line amenities, almost any creature comfort you can imagine, and the peace of mind of not having to worry too much about maintenance.

In New Jersey, single-family homes remain an enticing call for curious homebuyers. But for those who yearn for a more modern lifestyle, an easy commute to the Big Apple, and access to some of New Jersey’s most popular cities, exploring condos will open an entire world of exciting real estate. 

It’s important to know where to look, but it’s equally important to understand condos, how they work, and how to decide on what kind best suits your needs.

Below, the team from Prevu Real Estate will explain everything buyers need to know about buying a condo in New Jersey, including how to search for the right neighborhood, prepare for a purchase, and potentially save money when buying.

Buying a condo in New Jersey

• What is a condo in New Jersey?
• The role of the HOA
• Find the right buyer’s agent
• Leverage commission rebates
• Explore various neighborhoods
• Decide on the condo you want
• Get fully underwritten pre-approval

What is a condo in New Jersey?

In New Jersey, condos typically exist within subdivided buildings that resemble apartment complexes, but they can also be found in converted homes, detached condos, or townhouses.

In essence, a condo is a privately owned residential unit within a community of other residences.

Condo owners in New Jersey share ownership of common areas such as foyers, parking garages, fitness centers, pools, and elevators. These shared spaces are managed by a Condominium Owner's Association (COA) or, in some communities, a Homeowner’s Association (HOA). The COA or HOA is governed by a condo board, which oversees the maintenance of these common areas and other community matters.

Owners pay monthly dues to the COA or HOA, which cover the upkeep of common spaces, amenities, insurance, accounting, and the exterior of the building. These fees may be referred to as COA fees, HOA fees, dues, or common charges, but they serve the same purpose regardless of the terminology.

As a condo owner in New Jersey, you will have a title to your unit, as well as the responsibility of maintaining its interior. The catch with condo ownership is that any major maintenance or renovations to your property typically require approval from the condo board. 

The role of the HOA

Your number one task before closing on a condo is learning everything you can about the building's Homeowner’s Association. It will be a huge part of your condo-ownership journey so it’s best to get acquainted with what it is and what it does.

The HOA is a governing body responsible for managing and maintaining the shared spaces and amenities within the condo community. Their functions ensure that the community remains well-kept, organized, and financially sound, enhancing the quality of life for all residents and preserving the equity and property values of owners.

The HOA is typically governed by a board of directors elected by the condo owners. This board oversees rules and regulations known as the Covenants, Conditions, and Restrictions (CC&Rs). These rules cover everything from architectural guidelines and landscaping standards to noise restrictions and pet policies, helping to maintain a harmonious living environment.

One of the HOA's primary responsibilities is managing the maintenance and repair of common areas. This includes landscaping, snow removal or plowing, cleaning, and repairing shared spaces like hallways, elevators, swimming pools, fitness centers, and parking lots. By ensuring these areas are well-maintained, the HOA helps preserve the community's aesthetic appeal and functionality.

Find the right buyer’s agent and real estate attorney

If this is your first or second foray into buying a condo in New Jersey, finding the right buyer's agent and real estate attorney is crucial to a successful purchase. 

Condos have their own set of challenges when it comes to paperwork, inspections, and deciding on what works best for you. A single-family home can often be straightforward as the entire property is yours. But a condo, while offering a lot of flexibility in some aspects, can be limiting in others.

Start by researching agents with experience in the New Jersey condo market. Look for agents who have positive reviews and a track record of successful transactions in the areas you're interested in. Personal recommendations from friends or family can also be valuable. Same goes for real estate lawyers.

Once you've identified potential agents and a lawyer, interview them to ensure they are a good fit. Ask about their experience with condo transactions specifically, their familiarity with different condo communities, and their approach to negotiating and closing deals. 

An effective buyer's agent will also help you navigate the complexities of condo ownership, such as understanding common charges, rules, and regulations. They can advise on the financial aspects, including securing a mortgage and assessing the overall value of the condo you're considering. In addition, your real estate attorney will be pivotal during the purchase contract process and the attorney review period.

Most importantly, however, be sure to ask if they offer commission rebates. These can be some of the most valuable tools for saving money when you buy a condo in New Jersey.

Leverage commission rebates

New Jersey’s condo market can be competitive. Many desirable condo buildings feature some of the best amenities available; the more desirable the unit, the more expensive your final purchase can be. Any way to increase affordability should be a top priority for buyers. Commission rebates are one of the best ways to achieve that.

In simple terms, commission rebates are extra savings passed on to the buyer after closing, taken from a portion of a buyer’s agent commission. Brokerages that specialize in commission rebates help maximize these savings for buyers.

For instance, Prevu currently offers the largest commission rebate in New Jersey. It leverages a streamlined digital homebuying platform and expert salaried agents to empower buyers to take more control over their condo search.

The company’s Smart Buyer Rebate can net buyers a commission rebate of up to 1% of the condo’s final purchase price. These extra savings can create more funds to help offset expensive closing costs, jumpstart a renovation project, or contribute to furnishing your new home.

Explore various towns and neighborhoods

This step can sometimes be lengthy if you aren’t crystal clear on exactly what you want out of your neighborhood. 

Start by considering your future commute, especially if you’re looking for NJ towns with easy commutes to NYC. 

If you rely on public transportation, towns like Hoboken and Jersey City’s eclectic collection of neighborhoods should be high on your list. Hoboken offers easy access to NYC via PATH trains and ferries, making it a top choice for those who need a quick and convenient commute. Living in Jersey City, particularly in the Waterfront and Downtown areas, will provide you with access to PATH train stations, light rail, and ferry services with direct routes to Manhattan.

Next, think about the type of living environment you prefer. If you enjoy a vibrant, urban atmosphere with lively nightlife and a variety of dining and entertainment options, Hoboken might be the perfect fit. Jersey City also offers a dynamic urban experience, with diverse cultural attractions and a rapidly growing restaurant scene.

For those who prefer a quieter, more suburban feel while still being close to NYC, consider exploring Englewood Cliffs and Fort Lee. Englewood Cliffs provides a more relaxed residential environment with spacious condos in smaller developments. Fort Lee, located just across the George Washington Bridge, offers a mix of high-rise condos and more modest options, with excellent bus service to Manhattan.

If waterfront living appeals to you, Edgewater could be an ideal choice. This neighborhood offers modern high-rises and townhome-style developments with stunning views of the Hudson River and the Manhattan skyline. 

When deciding which neighborhoods to explore, consider visiting each area to get a feel for the community. Spend time walking around, visiting local shops and restaurants, and observing the overall vibe. Pay attention to the amenities offered by different condo complexes and how they align with your lifestyle. Some may prioritize luxury features like rooftop decks and fitness centers, while others may offer more basic but still desirable amenities.

Decide on the condo you want

Though you may not have the same customization flexibility with a condo as you would with a single-family home, you should still think carefully about what kind best suits your needs.

First, consider the size and layout of the condo. Think about your current living situation and how much space you need. Do you require multiple bedrooms, a home office, or extra storage? The layout is equally important—open floor plans, balconies, and natural light can significantly enhance your living experience.

Next, assess the amenities offered by the condo complex. Depending on your lifestyle, you may value features like a fitness center, pool, parking, or 24-hour security. Consider how these amenities align with your daily routines and preferences. If you have a pet, check for pet-friendly policies and facilities like dog parks or pet washing stations.

The financial aspects are also crucial. In addition to the purchase price, factor in the monthly COA or HOA fees and what they cover. Ensure these fees fit within your budget and offer good value for the services provided. It's also wise to review the association's financial health and any upcoming special assessments that could impact your finances.

Location is another key factor. Proximity to work, public transportation, and essential services like grocery stores and healthcare can greatly influence your decision. Consider the neighborhood's overall vibe and how it matches your lifestyle. Do you prefer a quiet, residential area or a more bustling, urban environment?

Finally, evaluate the condo's long-term potential. Consider how the property aligns with your future plans, whether you intend to live there for several years or see it as an investment opportunity. Investigate the resale value of similar units in the area and any planned developments that could affect property values.

Get fully underwritten pre-approval

Securing a fully underwritten pre-approval provides you with a solid financial footing and demonstrates to sellers that you are serious.

A fully underwritten pre-approval goes beyond a standard pre-approval. It involves a thorough examination of your financial situation by a lender, including a review of your income, assets, debts, and credit history. The lender will verify your documentation and conduct a preliminary underwriting process. This level of scrutiny ensures that your financial profile meets the lender's criteria for a mortgage, giving you a more accurate and reliable assessment of how much you can afford to borrow. 

This in turn will allow you to bid on properties with more certainty and also show sellers and listing brokers that you are verified and qualified. This will ensure your offer is more seriously considered.

To begin, gather all necessary financial documents, such as recent pay stubs, tax returns, bank statements, and records of any other assets or liabilities. Providing complete and accurate information will help expedite the process and avoid any delays.

Next, choose a reputable lender experienced in condo financing. They can guide you through the specific requirements and nuances of obtaining a mortgage for a condo, which can sometimes differ from other types of properties. Some lenders may have additional criteria for condo loans, such as the financial health of the condo association or the occupancy rate of the building.

Once your lender has reviewed your documents and completed the preliminary underwriting, they will issue a fully underwritten pre-approval letter. 

Having a fully underwritten pre-approval also provides you with a clear understanding of your budget, allowing you to focus your search on condos within your price range, and giving you the ability to close a loan quicker and make your offer more attractive.

Interested in buying a condo in New Jersey? Browse listings and see how much you can save with Prevu’s Smart Buyer Rebate.

Condos for sale in New Jersey