It’s a good time to sell a home in New Jersey. According to the latest data from Redfin, home prices were up 10.1% in 2021 - and steady (though slower) gains are anticipated for 2022. The number of homes for sale in 2021 decreased 22% from the year before, indicating that the rise in price was tied to a fall in inventory (a trend seen throughout the U.S. this past year). Low inventory isn't guaranteed to last, so it's a good time to sell - it's still a strong seller's market.
Selling your home is a process that differs state by state. Here’s what you need to keep in mind about selling a home in New Jersey.
The first step to selling your home in New Jersey is finding an experienced Realtor (read 15 essential questions to ask a Realtor for more info on how to choose one). Look for an agent who’s familiar with your neighborhood, is experienced with negotiating, has positive reviews from past clients, and focuses on the listing side of the transaction, rather than the buy side.
Most agents will then recommend that you declutter your home and take care of any necessary repairs or minor updates. Even in a competitive market, ensuring your home pops in online listings and in person can help you maximize your profits.
For selling your home quickly and for the most money, NJ listing agent David Vitarelli has this to advise: “Price your home correctly.”
Price a home too high, and it can often linger on the market. Price a home correctly, and people will perceive a good deal - and you’re more likely to receive multiple offers you can leverage against each other.
“I would advise New Jersey home sellers to familiarize themselves with what homes in their immediate market are selling for, then as objectively as possible, set some realistic expectations about a realistic sale price,” he continues. “In this market, it’s easy for some sellers to get carried away with pie-in-the-sky valuations because of the headlines they read about in the news. Having realistic expectations is a good first step in preparing for a sale.”
Every person selling a home in New Jersey also needs to fill out a GIT/Rep form. Each owner of the property being sold must submit one of these forms (married couples are considered one owner). This form helps the state determine if an estimated tax payment is required when the deed is recorded.
To sell a home in this state, sellers will also need to produce two forms of ID, a copy of the purchase agreement, the closing statement, the signed deed, the bill of sale, and the affidavit of title.
The NJ Seller's Disclosure statement: In New Jersey, home sellers have a legal obligation to buyers to disclose information about their property’s known defects. Failure to disclose can result in costly legal skirmishes that most homeowners would rather avoid.
However, residents of this state are not required to fill out a disclosure form - filling out the form is just recommended as a way of ensuring you give a thorough disclosure.
There are several taxes you may be required to pay when you sell your home in New Jersey.
“Whenever I am asked about a tax-related question, I always recommend that listing clients talk with a CPA for professional advice,” notes Vitarelli. “The exit tax is not an additional tax. It’s a tax prepayment of normal tax that is owed by all home sellers that the state applies at the sale to ensure it is received. However, in some cases depending on circumstances, it can be credited back when filing year-end taxes.”
Who pays closing costs in NJ? Both the buyer and seller do. However, they each pay for different parts of the transaction.
Although taxes are part of your closing costs, they’re not all. Notably, you’ll need to pay is the listing agent’s commission and the buyer agent’s commission**. In a standard real estate transaction, it’s 3% of the home’s sale price for each agent - or a total of 6%. So for a $500,000 home, that’s $30,000.
While it can be tempting to list a home yourself, we wouldn’t recommend it. True, it’s not so difficult in this market to find a buyer for a home. In fact, you’ll practically be beating them off with a stick if you list at a fair price. However, the agent is there to back you up specifically when issues arise with the appraisal, the inspection, the title, negotiating, etc.
“Most people wouldn't dream of doing their own plumbing - are you really going to trust the most important financial decision of your life to what you learned on the internet?” notes Houwzer COO Ted Mucellin in What’s a Fair Fee? Realtor Commissions Explained.
Houwzer is one of the top-rated brokerages for home sellers in NJ for several reasons.
“It’s pretty simple really - Houwzer leverages technology to market and sell houses efficiently and in a way where we are able to pass the savings we see, back to the client,” notes Vitarelli.
According to a study by real estate photography network VHT Studios, professional real estate photographs sell listed homes 32% faster than listings without.
Regardless of your local housing market, great photography will make a difference because the vast majority of people start their search for a new home online. Regardless of your home’s specs, location and features - if all the photos are dark and blurry, you’ll face an uphill battle getting them to come and look at your home.
One of the benefits of working with Houwzer is that they ensure every listing has professional photography in order to ensure it gets more views - and subsequently more interest from buyers.
Interested in selling a home in New Jersey with Houwzer (and saving an average of $15,000)? Get in touch here.
Left photo: Cell phone photo. Poor staging and a vertical shot mean the photo is focused on the trash bin, and it’s difficult to see the room’s size or its features. Low resolution means a blurry light fixture.
Right photo: Houwzer’s photo uses a wide-angle lens and a strategic angle to make the room feel open and inviting. It’s easy to see the room’s entire layout.
**Note: This article was written before the Sitzer/Burnett commission changes went into effect.