Calculators

Mortgage numbers can be dizzying, particularly in the abstract. You can use the calculators listed below to help get a handle on what it will cost to buy the home you want. For more detailed information, feel free to email me or contact me by phone and I will be happy to help guide you through the process. (click to launch in a pop-up window)

» Monthly Mortgage Payments Calculator

» How Much Can You Afford Calculator

Recent Home Sale Prices

Property values have been going up quickly thanks to low interest rates and strong demand in the area. Always a good investment, buying a home has never been more of a growth opportunity. In the last three years, average home sale prices in the area have doubled. Want specifics? Feel free to send me an email or contact me by phone and I will put together a customized report on recent home sale prices based on your specific needs.

Understanding Agency Relationships


When we meet for the first time, I will give you a short pamphlet that explains in more detail the various legal aspects of a home sale that are required by law. In essence, there are four basic types of agency relationships as defined by the NJ Board of Realtors:

• Seller’s Agent: As a seller's agent, I, as a licensee, represent the seller and all material information supplied to me by the buyer will be told to the seller.
  
  
• Buyer’s Agent: As a buyer's agent, I, as a licensee, represent the buyer and all material information supplied to me by the seller will be told to the buyer.
  
  
• Dual Agent: As a disclosed dual agent, I, as a licensee, represent both parties, however, I may not, without express permission, disclose that the seller will accept a price less than the listing price or that the buyer will pay a price greater than the offered price.
  
  
• Transaction Broker: As a transaction broker, I, as a licensee, do not represent either the buyer or the seller. All information I acquire from one party may be told to the other party.

Closing Costs

While buyers don't have to pay a sales commission, they are responsible for a fairly substantial number of closing costs. The exact amount is determined by your mortgage lender who should be able to give you a rough estimate based on the price of the home and the terms of your mortgage. Here are some general cost guidelines for the area:*

• Title insurance: $3.25 per every $1000 up to $500,000; after that, it drops to $2.00 per $1000 up to $2,000,000 (example: a $500,000 home would require $1625 in title insurance)
• Title search: $150 - $200
• Homeowner's insurance: depends on the value of your home and its contents, but assume an absolute minimum of $500-700 for a single family home
• Mortgage application: $250 - $400
• Recording fees for deed and mortgage: $80 - $100
• Attorney fees: $800 - $1000
• Lender's attorney review: $150 - $300
• Private Mortgage Insurance (PMI), if applicable (usually 1 - 2 months due at closing)

• Tax adjustment: a prorated amount depending where you are in the quarterly property tax schedule
• Tax escrow: Usually 2-3 months of property tax payments plus any prorated amount required (as with the tax adjustment)
• Mortgage interest adjustment: a prorated amount of your monthly interest depending on what day of the month you close

Fees

As a buyer, your fees are generally limited to mortgage lender fees, lawyer fees and various home inspection fees. If issues turn up on your inspection that require a specialist or a second opinion, that will require additional fees. Examples of general inspection fees include:*

• Home inspection: $500-1000 for a 3 bedroom house
• Oil Tank sweep: $150-200 (optional; determines if you have an oil tank buried on your property, which should be checked for leaks)
• Termite inspection: $75-150

Choosing an Attorney

Generally speaking, it's a good idea to choose a local attorney who is familiar with the area. Particularly with older houses, a seasoned local attorney may be aware of past history with the house and/or the seller. At the very least, make sure to use a New Jersey-based attorney as real estate law varies widely from state to state.

Prequalifying for a Mortgage

For everybody's peace of mind, it is vital to obtain a pre-qualifying letter from your mortgage lender in advance of pursuing a new home in earnest, particularly for first-time home buyers.

As a buyer, it is important to have an accurate picture of how much house you can afford. It will help us refine your search, allow you to make a bid with greater confidence and prevent both of us from wasting time looking in the wrong place.

When you come to actually placing a bid, a seller will generally require a pre-qualifying letter before considering your offer. With events moving rapidly during the bidding process, it is important to have this detail worked out well in advance.