Questions to Ask When Purchasing a House in New Jersey

Purchasing a house in New Jersey is an exciting journey. But if you do not know the right questions to ask, it can become a daunting experience. 

From the age of the home to the renovations done, these facts tell a story about the history of the house. Asking the right questions can make the difference between buying the home of your dreams or a nightmare you can’t escape. 

If you are wondering what to inquire about when buying a home, do not worry. Below we share a quick list of questions to ask when purchasing a New Jersey home. 

How long has the property been on the market?

Asking how long a house has been on the market provides insight into the property's desirability and if the asking price is appropriate. 

A home in Hoboken that has remained unsold for a long time might have hidden issues. Or it could mean the seller is asking too much for the house. In a fast-moving real estate market, properties may sell quickly. So if a property has been on the market for a significant amount of time, it is worth investigating why. 

Knowing how long a home has been on the market can also give you leverage when negotiating the price.

How does the asking price compare to similar homes?  

Understanding how the asking price compares to similar homes in your target slice of the Garden State is essential. 

Home values vary based on location, square footage, age, and condition of the house. You will want to compare the listing prices of similar homes on the market, as well as comparable homes that sold in your neighborhood. The best way to do that is by working with a buyer's agent experienced in the local area. 

Real estate agents have access to the multiple listing service (MLS). They can provide a comparative market analysis (CMA) examining recent sales of similar homes, current market conditions, and property features. This data helps you decide whether the asking price is reasonable and whether you should negotiate or be aggressive to secure the deal. 

They’ll also have information about what appliances and fixtures are included in the sale. Plus, if you work with the right agent, you can get money back at closing through a commission rebate. 

Ask about home age and renovations

While a storied colonial home in Kearny looks beautiful, you will want to learn about the age of the house and whether it was ever renovated. 

Like all products, homes depreciate with age, and as the years go on, different parts of the home may break down. The same goes for renovations and repairs. If the owner added a wall to create a second bedroom, ask when the work was done. 

These are important questions to ask. If you are going to spend thousands of dollars on closing costs, you will want the peace of mind that comes from hiring a home inspector. A home inspection will turn up long-term problems with the house, such as lead paint or leaking pipes. If the area is in a flood zone that has experienced natural disasters, an inspector can look for signs of water damage. 

Knowing the finer details in the home-buying process can also help you identify the house’s energy efficiency and eco-friendly features. This feature is vital in a state like New Jersey, where energy costs can be high. 

What is the area's property tax rate? 

High property tax rates can turn buyers off to certain parts of New Jersey. The amount you are taxed depends on the county or town you move to and will impact the cost of homeownership. 

As such, research the tax rates across each neighborhood you consider. You also have to assume that the tax rate can increase in the future, depending on the price of homes in the area and if the local government adjusts the budget. Looking at the history of tax increases can show you if there might be increases in the future.  

Another topic to consider is property tax assessments, as a home's assessed value might not reflect the market value, resulting in higher property taxes.  

What are the average monthly utility costs? 

Homeowners in New Jersey face typical utility costs such as water, gas, electricity, sewer, and trash pick-up. 

If you live in a gated community or condo, you will have to deal with homeowner association dues and even special assessments. 

As you learn about the costs, make sure to ask about averages throughout the year. Chances are you will use more electricity for air conditioning in the summer, while your gas expenses might rise in the winter. 

Understanding the age of the boiler and central air systems helps, as older systems usually mean higher energy bills. Even little things like old drafty windows can cost you a lot of money over time in lost heat and AC. 

What is the condition of the roof, plumbing, and electrical systems?

In addition to the age of the home, you want to know the condition of the roof, plumbing, and electrical systems. Replacing or repairing these components gets expensive quickly. 

When seeing homes in New Jersey, ask the seller about the roof's age, the last time it was repaired or replaced, and any history of leaks. You will also want to ask about the plumbing, as outdated pipes can lead to leaks and mold. 

The same goes for the electrical system. If the wires or electrical panel are obsolete, it can raise your energy bills or start a fire. Having an inspector is crucial, as they can check these systems thoroughly to ensure their safety and reliability.

If the inspection reveals issues, it's essential to consider the cost and time required to address them. Sometimes, you can negotiate with the seller for a reduced purchase price or to complete any necessary repairs before finalizing the sale.

Are there any pending or past legal issues associated with the property?

Problems with liens, boundary disputes, and easements can make buying a home a nightmare if you do not uncover them early on. These issues affect the use and value of the property, so keep an eye out for legal entanglements before making an offer.  

For example, a lien on the property could limit the ability to sell the property or even result in the loss of the property. Therefore, ensuring the property is free and clear of any liens or outstanding debts is essential to avoid potential legal or financial problems down the road.

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