If you’re thinking of selling a house as is in NJ, you’re in the right place to learn everything you need to be able to do it.
In case you want to obtain quality legal assistance and avoid any problems when selling a house in New Jersey , you can contact the NJ real estate attorney at Curbelo Law. The firm has a good reputation in handling all types of real estate transactions and has more than 10 years of successful experience.
Selling a house As Is In NJ In 2023
Selling a home as is New Jersey allows the seller to save time and money on the cost of possible repairs to the property. Although houses can be sold as is, the law establishes certain requirements that must be disclosed.
Regardless of whether a property is being sold as-is or with proper repairs, the seller must follow certain guidelines. Basically to prevent the buyer from withdrawing or worse yet, taking them to court.
What I really need to buy a house in NJ? Find out everything you need to know when buying a house in Garden State.
What Does As Is Mean In NJ Real Estate terms?
We are often asked: What is an as-is home sale in NJ? “As is” in real estate transactions means that the buyer will get a property in its current condition.
The sale as is means that the buyer is willing to accept a property with all its defects. Nevertheless:
- “As Is” is also a legal term used to reveal information about the current condition of a property.
- Owners must honestly disclose any defects in the property.
- According to the Consumer Protection Act, real estate agents must maintain complete confidentiality when discussing property defects, or they risk being prosecuted under this law.
Are you a first-time home buyer looking for specific homebuyer programs? You may be interested in our blog on NJ first-time homebuyer programs in New Jersey.
Can A House Be Sold In NJ As Is?
New Jersey allows you to sell a house as is, but certain steps must be followed to do so. A real estate agent must ensure that any special circumstances on the property are reflected in the purchase contract.
The law requires that the transaction contract mention that the buyer accepts the house as is. Said contract must be completed by sellers when selling their property.
- As part of the contract, the seller must confirm to the buyer that they have not made any modifications to the property that are contrary to the laws of the area.
- In the event that modifications have been made, the seller must stipulate that such changes were made in accordance with the law.
- The contract must reflect whether the appliances and other systems owned by the property are in good working order.
- In addition, the contract must identify how the property has been used before it is sold as is.
If the local authorities do an inspection for the certificate of occupancy and find that the seller made alterations to the property, the seller may have to pay additional taxes.
If the inspection takes place after the house has been sold, the new owner will be responsible for paying these taxes.
Do you know that an undocumented person still has options to buy a property in the United States? If you are interested in the topic, check out our blog: Can an illegal immigrant buy a house?
Can A Seller Withdraw From An Offer As Is?
Sellers who decide to withdraw from the offer as is are not included in the real estate contract. This is because the contract only specifies who receives the security deposit and how and when the security deposit can be terminated.
It is important to consult with a real estate attorney in these scenarios. Our attorney Carolina T. Curbelo is specialized in this real estate legal area.
What Must Be Disclosed When Selling A Home In NJ?
Due to the New Jersey Supreme Court ruling in Weintraub v. Krobatsch , sellers must disclose any existing problems with the property. This includes everything that is visible to the naked eye and equally to what is not visible.
Issues to be disclosed include:
- Environmental problems. For example, the buildup of radon on the property.
- Possible disputes with neighbors.
- Any violation of municipal codes.
- Dry rot.
- Illegal extensions or remodeling on the property.
- Parts of the property that are flooded.
- Damage to or failure of the structure of the property or the systems within the property.
- Material defects, such as loose or missing siding.
- Unsafe conditions for health, such as paint with lead or asbestos.
- Potential in-home fraud or past or present material misrepresentation.
- Age of air conditioning and heating.
- Conditions of the electrical system.
- Latent material defects such as plumbing leaks, roof damage, termites, defective drywall, foundation cracks and so on.
Sellers are not required to disclose a death that occurred in an as is home in New Jersey. Consult with our attorney to discuss disclosure obligations.
The risk of a flood or fire in a home in New Jersey is often high. Therefore, it is advisable to have New Jersey flood insurance and and compile with the NJ smoke detector requirements and certificate.
Can A Buyer Inspect The Property?
Regardless of whether it is an as is house, the buyer has the right to have an inspection prior to purchasing the home. Most real estate contracts have a clause requiring a home inspection in New Jersey.
- This clause allows buyers to cancel a contract if a qualified home inspector identifies undisclosed existing problems with the property.
- It is important to always perform a proper home inspection before proceeding with the home buying process.
- While buying a house as is means that the seller will not repair the defects noted in the inspection report, the report should give the buyer a complete picture of the home’s current condition.
Home inspections are very important, even if you plan to rent a property. Would you like to learn how to become a landlord in NJ? We have a publication where we explain this topic in great detail.
Advantages And Disadvantages Of Selling A House As Is In NJ
- Saving money. Home renovations can be extremely expensive. However, when selling a house as is in in NJ, you don’t have to spend money or go into debt on repairs or alterations.
- Less stress. Sellers have the option to sell their home as is to cash companies. By doing this, sellers will be able to get a quick buck and won’t have to deal with real estate agents or haggle over costs.
- Faster sales. Selling a house as-is is usually much quicker than the regular method. Also, there is no need to place the property for showings.
- Anticipated spendings. Sellers can tell potential buyers how much they are willing to spend on early repairs. This allows the closing of the property to be more predictable for both parties.
- Less sales revenue. On some cases, buyers may believe that the seller is desperate to sell their property or assume that the property has significant flaws. This can reduce the offer value on the house.
- Possible repairs to be made. Selling a home as is does not exempt sellers from making some repairs. In fact, most buyers can try to negotiate repair costs with the seller.
- Fewer buyers. Unlike selling a home the regular way, selling an as is home tends to attract fewer buyers. This is because it will only attract buyers willing to make slight modifications.
- Low property value. Since buyers may have a negative impression of the house, they may assume that it has significant flaws and will require spending a lot of money to repair.
Tips For Selling A House As Is In NJ
To sell a home as is in New Jersey, the same guidelines must be followed as when selling a regular home. However, a somewhat different strategy is also required.
1# Highlight The Positive Aspects Of The House
Marketing a house as is can be complex, but by highlighting positive aspects of it, you can end up attracting more potential buyers. To do this, the seller has to:
- Indicate the positive aspects. Whether it is the services located in the area of the house, the closest school district, lighting, low consumption, appliances that the home owns and others.
- Subtly describe the property. When preparing a description, be sure to include all of the property’s catchy words without going overboard.
- Select an appropriate price. When selling a property as is, an appropriate price must be set for this.
- Maintain transparency. Sellers should always be upfront and honest about any defects found on the property. In addition, when selling this type of house, it must be mentioned in the real estate contract that the sale is in an as is condition.
2# Repair Any Serious Defects
Sellers who list their homes as is must correct certain elements that can be serious for potential buyers:
- Termite infestation. Termites are one of the most common property problems in the US and can put buyers off. A termite treatment can cost an average of $600 or so.
- Outdated roof. If the roof has leaks, it is ideal to repair it. This is because flooding is common in New Jersey. Roof repair costs can range from $200 to $7,000.
- Damaged foundations. The weak foundation of a property poses a great threat of collapse. The repair for this usually ranges between $4,000 and $7,000.
3# Follow The Best Strategies To Sell The House As Is
- Reveal all the details of the property. Disclosing all details to buyers is essential as this will help them to be informed as to whether the structure is habitable and safe.
- Advertise “as is”. It should be mentioned that the house to be sold is as is, since it allows buyers to understand that the house is being sold in its current conditions and is different from a regular sale.
- Inspect the property. Sellers must conduct a pre-listing inspection of the property to ensure that it is safe to live in. In addition, this generates transparency and trust in buyers.
- Make minor improvements. Sellers can also carry out minor repairs if necessary. This includes cleaning, painting the house, mowing the lawn and so on.
- Keep intentions clear. It is important for sellers to keep all of their intentions clear. This is because buyers may back off after discovering previously undisclosed situations.
- Maintain a fair price. Some buyers may ask their contractors for quotes or will do a home inspection to make sure the price is fair. Therefore, you should never ask for a price above the estimate.
4# Know The Common Expenses Of Selling The House As Is in NJ
Here are some of the common expenses typically faced by sellers of as is homes in New Jersey:
- House preparation costs. Typically, home sellers can spend between $4,000 and $12,000 or about 2% of the home’s sale price. For houses as is you may not have to invest in that sense. Selling it as is, the cost may be as low as $200 for a professional cleaning company.
- Real estate agent fees. Fees for these agents are typically over $15,000 or around 5% of the home’s sales price. As is home sellers can sell your home without the need for a real estate agent.
- Incentive rates. In some cases, sellers may have to pay the home inspection fee and a home warranty to the buyer. These costs may vary.
- Closing costs. Closing costs on a home in New Jersey include the registration fee, real estate title fees, and transfer tax. In a house as is, the buyer may not be able to be asked to pay for it.
- In these cases, the seller may have to pay for New Jersey title insurance , which is generally paid for by the buyer.
- These expenses can amount to more than 1% of the sale price of the property.
- Relocation costs. If a home is being sold as is, the seller must take into account the costs associated with moving into your new home. Usually the price is usually 2% of the sale price.
Curbelo Law Helps You Sell A House As Is In NJ
Selling a rundown home in New Jersey can be a difficult task. If the seller does not have the patience to manage the renewals or procedures necessary for it, it is best to have an expert in this matter by your side.
The Curbelo Law team has helped hundreds of sellers and buyers in the state, so they have enough experience to help you. The firm can help avoid any type of mistake in the property sale process, thus facilitating the closing.
If you would like to contact us for help with your home selling process, please call, email or schedule an appointment with our office in Ridgewood, New Jersey.