For Sale By Owner Lawyers in Freehold NJ

Guiding Clients Through For-Sale-By-Owner Real Estate Sales and Purchases in Monmouth County, Ocean County, and Southern New Jersey

Now is a great time to sell your home. It is a seller’s market as housing is in great demand in New Jersey. However, Selling your house is more expensive than people may think. One way that New Jersey residents are saving money when they sell their homes is by selling them themselves. By skipping the middleman (realtor), they save thousands on commissions and other fees. New Jersey is one of several states that does not require a realtor to conduct buying or selling a home. This allows sellers to choose their prices and set the pace during the selling process. They can determine how and where their home is listed and negotiate a price themselves. The typical back and forth between buyers, sellers, and their respective realtors can sometimes bog down what can be a straightforward exchange.

At Chamlin, Uliano & Walsh, our experienced real estate attorneys have been helping clients with buying and selling for-sale-by-owner real estate properties across Monmouth and Ocean County, including in Hazlet, Eatontown, Middletown, Belmar, and Asbury Park, for decades. Let us help to ensure that you are informed, engaged, and protected throughout the process of completing your real estate deal. Contact us at 732-440-3950  to schedule a consultation.

Selling a Home Without a Realtor: Legal Complexities and Important Documents in New Jersey

Choosing to sell your home can feel free, and having the autonomy to make important decisions can be exhilarating. However, it is valuable to remember that you must follow the steps required by the state in terms of reports, contracts, and other paperwork—mountains of it—which the state requires to protect the buyer from someone who may attempt to cover up information about the property.  There are several templates for a property condition disclosure statement.  Your disclosure statement must list any defects in the property and indicate if major repairs are needed, such as electrical work or roofing issues.  Information about infestations or termite damage and any problems with the septic system must be given.

There are many documents required to sell a property. Some are part of the buying agreement, and others are required at closing. Permits are needed for major renovations, additions, central air or heating units, and repairs to correct problems such as underground oil tanks. Before the sale is approved, the buyers, mortgage companies, and local government agencies will require those permits.  HOA documents, including the Master Deed or Master declaration, rules, regulations, and by-laws, should be provided to the buyer early in the process.  Any recent renovations should include a warranty to give the buyers time if the work was defective.

A real estate contract is a binding agreement between two parties to transfer property from one party to the other.  It establishes the rights and requirements of the parties and lists essential points such as the price, closing date, deed type, inspection, and the property included in the sale.  This contract must be written in hard copy to be valid.

If you sell your property without hiring a realtor, you should still hire a real estate attorney.  Purchase agreements (contracts) are complex, and you cannot afford any mistakes, additions, or omissions that could render your agreement null and void or leave you open to liability.  A lawyer can draw up a contract tailor-made for your specific needs.  Unique situations, such as short sales, post-closing tenancies, closing costs, foreclosures, etc., can be best managed by an attorney.

The property’s title must be “clear,” which means it has no liens, claims of ownership by other parties, zoning or code violations, etc. Additional paperwork, such as a “back title,” is also a must. This includes a survey (map) of the area, property parameters, and the deed.  Proof that no debt over the property, including the tax liens or a mortgage, must be provided.

Preparing Your Home for a Successful For-Sale-by-Owner Sale Transaction in NJ

Determine Your Home’s Fair Market Value (FMV)

Before you can sell your property, you must create a listing.  That means deciding your selling price.  A home’s fair market value (FMV) lets sellers know the price range their property falls under and how to attract buyers while still selling the property for the appropriate amount.  Calculating your home’s value is more complex than plugging dome numbers into a formula, but by taking the value of homes in your area that are similar to yours and have recently been sold, you can get a ballpark figure.  Then, adjust your figure by comparing the square footage and amenities, such as a deck, pool, solar panels, etc.  If there aren’t homes similar to yours for comparison, another route is to calculate the cost of the lot and what it would cost to build your house from the ground up, allowing for depreciation as your home is not new.  If you still have no idea what your home is worth, you can hire a professional appraiser.

Boost Your Home’s Visual Appeal to Attract Potential Buyers

Making your house sale-ready takes a lot of work but could make a big difference.  Increase your curb appeal by trimming hedges, replacing the mulch in your flowerbeds, raking leaves, and keeping the grass trimmed.  If you are a fan of garden tchotchkes such as flamingos and gnomes, cut back to one or two and make sure they are in good condition.  A few potted plants or flowers on your porch steps can bring an added pop of freshness.  The front porch may need a fresh coat of paint, and the windows should sparkle. You might want to trade out that sarcastic welcome mat from your bestie that gives you a giggle for a simpler one.  Fishponds, decorative fountains, hot tubs, and pools should always be cleaned and in working order.

On the inside, keep the clutter to a minimum.  Clear off counters and put away unneeded decorative items (such as a Christmas tree in April).  Clean up and organize the garage.  Move extra furniture or storage bins to a self-storage facility.  Make sure there are no stains on rugs, decorative pillows, tablecloths, etc.  Walls should be cleaned or freshly painted in neutral colors.  Curtains don’t have to be new but should be made of sheer fabric to let in more light.  Be sure to keep the temperature cool in summer and warm in winter. Pets should be kept with friends or family during open houses and showings. Before you start showing the house, do a deep clean:  dust the crown molding, get the cobwebs out of the light fixtures, scrub tubs, toilets, and sinks until they sparkle. Bathrooms should be spotless, and towels should be clean and new.

To keep the house smelling fresh, boil orange or lemon rinds in the microwave or stove.  A small bowl with cotton balls soaked in lemon extract or your favorite essential oils can provide the perfect fragrance. Running lemon rinds through your garbage disposal and keeping kitchen garbage in a closed bin will keep your kitchen smelling fresh.  Make sure there are no burned-out lightbulbs, cracked caulking, or drippy faucets to distract your potential buyers from the beauty of your home.  Bright accent pillows, afghans, or shimmery lamp shades can jazz up a dull décor.  Fresh flowers in the dining room are a nice touch.  Adding some pretty bath soaps or a jar of colorful bath salts by the tub will make it more inviting.  Bedrooms should be tidy and have as many personal items as possible tucked safely away.

Consider Professional Photos to Feature Your Home

What is said about eating our food first with our eyes can also be said about how we choose a house.  The same property, staged and placed on the same listing platforms, can be received in remarkably different ways depending on how it is presented.  Photographs are an absolute must; having them professionally taken, edited, and placed in your listing is well worth the expense.  According to expert real estate analysts, the magic number is 24 to 28 photos.  Some photographers prefer to shoot a few different times during the day to get the most natural light in each area of the house.  If the front walkway or the backyard has decorative light fixtures, you may want to include them.

Broadcast Your For-Sale-By-Owner Property

Your house looks spectacular. You have settled on a fair price, and now it is time to let the world know! It is best to use FSBO social media sites, but for a fee, there are real estate sites that will allow you to post your listing, called MLS (Multi-Listing Service).  These are private listing sites controlled by real estate agents and brokers.  For a flat fee, you can post your listing on an MLS.  A colorful, well-placed sign in your front yard and some flyers around town at your local gym or coffee shop are effective ways to get buyers.  Your listings should include the basics (bathrooms, bedrooms, square footage), renovations, and other features, but remember to promote the aspects of the house that you fell in love with, such as the fireplace, quiet neighborhood, proximity to good schools or shopping, or whatever you have enjoyed most.

Ways to Best Show Your Home to Prospective New Jersey Buyers

1. Be professional by greeting buyers warmly, and you don’t need to be dressed to the nines, but clean clothes and a professional appearance go a long way.
2. Be organized; it is one of the most important parts of showing your home. Keep a calendar handy to set up your showings, and be flexible for those buyers who may only have time in the evenings or on the weekends. Don’t schedule appointments too close together. You will want a few minutes to write down your impressions, make another pot of coffee, and replenish the snacks. Let them enter each room first as you take them through the house. It is OK to have “dead space” as they look around. You don’t have to talk or ask questions every minute, but get to know what they are looking for and explain how your space can fit their needs. For example, a room you use as an office could be a nursery or a child’s bedroom.
3. Be prepared to have an open house or two. Let your neighbors know they may see more cars parked on the street and people coming and going. Make sure you have flyers with the listing ready for prospective buyers. Having a spouse or friend mingle and offering refreshments to help with traffic flow through the house is a good idea.
4. Be ready to answer questions about nearby schools, crime, cost of living, HOA rules, and loud neighbors. All guests should fill out a sign-in sheet with their names and phone numbers. You can reach out to them a week or so after the event.
5. Be safe. Never show your home or hold an open house by yourself. If no one can stay to give a tour, ask a neighbor for help. Let them know when you will be showing your house, and if they hear or see anything odd, report it immediately. Also, keep as much of your belongings out of sight as possible and protect any items of value, such as jewelry or important documents, in a locked cabinet, safe, or closet.

Setting Realistic Expectations in the Negotiation Process for FSBO Sellers in NJ

It is time to sharpen those negotiation skills. Frequently, buyers are their worst enemy; either they are so desperate to sell that they literally give away the farm or so set on their selling price that they scare buyers away. You cannot get what you want if you don’t ask for it, but you need to maintain realistic expectations. Make a list of deal breakers and consider what you will let go. Be honest about flaws and repairs, and be willing to reduce the price or closing costs to reflect them. There is nothing wrong with negotiating more than one deal at a time. You can choose to walk away from a less-than-ideal situation. Preparing yourself mentally is essential as well. When you feel confident, it is easier to negotiate in your favor. Learn in our helpful free guide explaining the Top Reasons Real Estate Deals Fall Through.

The Final Stages of Selling For Sale By Owner in Monmouth County NJ

The Attorney Review

Selling your home without a real estate agent does not mean you can do everything independently. A real estate lawyer needs to conduct the process known as attorney review before you can close on your sale. This process is unique to the state of New Jersey and is designed to protect both parties in transferring the property.  The review process lasts only 3 days, unless a portion of the contract is changed.  In that case, the review period is extended until all parties are satisfied with the contract.  But this review includes more than the contract.  The attorney will require documents such as deeds, leases, titles, permits, and other documents regarding the property’s condition. If there aren’t any changes to the contract in the three-day review period, they are considered binding.

Transfer of Ownership

This process is known as the closing. All debts pertaining to the seller of the property must be paid in full, and all fees for services such as lenders, attorneys, or others must be paid from the buyer’s purchase amount. The sale proceeds are then sent to the seller.  Closing documents include the deed, which transfers ownership from the seller to the buyer, an affidavit of title, and several tax-related documents.

Potential Challenges of Selling For-Sale-by-Owner and How To Overcome Them

The biggest drawback to selling your home yourself is the time and energy you have to invest in repairs, staging, showing, listing, marketing, negotiating, etc. For most people, it can be an overwhelming burden. A solution could be to prepare and organize with precision and purpose. Consider the sale of your home as you would a project at work and set deadlines for what needs to be accomplished.

The second largest problem is setting a fair price for your home. FSBO families often know little about how much their house is worth and what the market will bear. Your house may be valued at $600,000 based on its location, size, and features, but if the homes in your area similar to yours are selling at $500,000, it may be a long while before yours is sold. Sellers can educate themselves by researching how many similar houses are being sold to get a better idea of their prices.

Lastly, negotiation for sellers is often difficult. Most people do not have professional negotiating skills, and when something as emotional as the family home is the subject of negotiation, emotions can run high. Frequently, buyers will submit a low offer, thinking the seller will meet them in the middle. A seller should stand firm and be prepared to walk away from a deal before agreeing to a price much lower than the house’s value. Also, a good negotiator can utilize bargaining chips other than the purchasing price, such as closing costs, a warranty for recent repairs, covering the cost of certain repairs, etc.

Let Our West Long Branch For Sale By Owner Real Estate Attorneys Protect Your Interests

You are ready to start looking for a house or want to sell the one you have as a for-sale-by-owner property. In either case, you will need a knowledgeable real estate attorney. Important documents need to be drawn up, reviewed, and signed. At Chamlin, Uliano & Walsh, our real estate attorneys can help to identify the red flags of a bad-faith deal and spot errors or parts of contracts that may be unfair to you in the long run. For more than 50 years, we have been assisting clients in communities throughout Monmouth and Ocean County, including Howell, Rumson, Long Branch, Manasquan, Wall, Neptune, Colts Neck, and beyond, in completing successful real estate transactions. If you are selling or purchasing a FSBO property, allow us the honor of working to make your goals a reality. Call 732-440-3950  or complete this form to set up a consultation.