Selling a house as is in NJ means that you transfer your property in its current condition, including any existing defects, without making any repairs, improvements, or price concessions.
“As is” sales are legal in New Jersey, but seller disclosures, affirmative representations, contractual obligations, and other legal requirements for selling a property still apply. For transactions like this, buyers may inspect the house and have the right to cancel the transaction afterward. This could only happen if the seller has not disclosed a defect that would have been a dealbreaker for them.
Homeowners in NJ usually decide to sell their property as is mainly because of two reasons: either they want to save time, or they want to save money. Whatever your reason may be, you will still be able to sell your house without making repairs. But do not expect to receive as many offers or earn a high profit.
If you want to know how to sell a house by owner in NJ, this article is for you. You will also learn about:
- The legal requirements you need to fulfill
- The best time of year to sell your house
- The cost of selling your house
- Available options for selling your house
Read on to learn more.
Legal Requirements and Considerations When Selling Your Property in NJ
While selling a house as is in NJ is legal, you still have an obligation to tell prospective buyers about the physical condition of your property. After all, you would not want them to back out of the sale, or worse, take you to court. The latter might end up costing you even more money, time, and stress.
Thus, it is crucial that you consider what you must disclose to potential buyers about the conditions of your home, especially if it has any major defects or issues. There is no fixed list of specific details you must disclose, but New Jersey’s courts have set the rules to protect buyers against sellers who neglected to tell them about certain material facts.
To help you avoid any further guesswork, here are some basic things you must know when selling your house as-is:
- You must promise that the house you are selling is fit to live in. By selling as is, you are implying that the property is habitable.
- You must disclose any known, latent, and material defects in your home.
- You must identify how you used your home, and that your use does not violate any current zoning ordinances.
- You must state that you have not made any home improvements that require permits, or that you have obtained all of the approvals needed for such projects.
- If your home was built before 1978, you must tell the prospective buyer if it had lead paint and provide them with the available records and reports about this issue.
Meanwhile, you do not have to disclose a death in your house no matter the circumstance unless it is related to any defects. If the buyer asks if someone died on your property, however, it is your obligation to answer them honestly.
You must include all of these disclosures in your Contract of Sale. The contract should also mention that all systems and equipment in your property are in good working order for their age. New Jersey does not require home sellers to hire a lawyer during the sale process, but having a real estate attorney could help you navigate other legalities you may not be familiar with.
Disclosing the condition of the property that you are selling is just one step in the house for sale by owner process. But it is an important one.
Best Time of the Year to Sell Your House in NJ
Many homeowners at some point in their lives may need to relocate fast because of changes in their situation. They might have been offered a new job in another state, there may have been a death in the family, or their family might be growing and they need a bigger space. If you still want to proceed with selling a house as is in NJ and have written down the material facts and defects that you must disclose, you might also want to know the best time to sell.
Timing may not be everything, but it can influence how long it will take for you to sell your home. So unless you need to do it now, then you might want to look into the current market first so you can sell quickly and at the highest possible price.
According to a recent study from Redfin Data Center, the best months for selling a house in NJ at the shortest time and highest price possible are June and July. They found that the properties closed in June sold for a premium of $17,000 after being on the market for 50 days, which is 14 days faster than the annual average.
Meanwhile, homes that were sold in July were priced $22,000 higher than the average after being on the market for 53 days. But because the number of people listing a house in New Jersey typically peaks in May, you may have more competition, making it more difficult for you to sell.
Depending on the condition of your home, marketing to real estate investors instead of families looking for a primary residence might be a better idea. They are usually looking for properties to rehabilitate and either rent out or resell. If you think this would work, then consider listing your home during the winter. This may be the slowest time of the year to sell, but the prospective buyers you will encounter tend to be more qualified and serious.
Cost of Selling a House as Is in NJ
The reason why people are selling a house as is in NJ is that selling a home, even if you do not make any repairs, comes with costs. On average, the total expenses related to selling your property could be equivalent to 10.3% of the final sale price.
Because you are already selling your property as is, you will not be able to ask for a higher price, so you may want to cut down on the costs. Here are some common expenses for home sellers in New Jersey as well as ideas on how to avoid or minimize them:
#1: Cost to Prepare Your Home for Sale
This can range from $3,400 to $11,600 or about 1.8% of the sale price. But since you are selling your New Jersey home as-is, then you may not have to spend on this at all unless you decide to hire a professional cleaning service, which costs about $150.
#2: Realtor Fees
Realtor fees can set you back $16,400 to $28,800 or 5.18% of the sale price. You might also have to pay the commission fee of the buyer’s agent. To avoid this, consider selling without a realtor.
Related: How Realtor Commissions Are Changing
#3: Buyer Incentives
These usually involve a buffer for sellers to make concessions and can cost from $4,400 to $12,900 or up to 3% of the sale price. Because you are selling as is, however, you do not have to spend on anything related to repairs. Thus, you might only have to pay for the inspection fee and possibly a buyer’s home warranty, if you want to offer it.
#4: Closing Costs
Closing costs include the transfer tax, recording fee, and title fees. In an “as is” home sale, you may not have enough leverage to ask the buyer to pay for these. You might even have to pay for the title insurance, which is usually paid for by the buyer. These expenses can amount to 1.1% of the sale price.
#5: Relocation Expenses
If the house you are selling is your current residence, then you also need to factor in the expenses related to moving to your new home. These costs usually amount to 2% of the sale price, which covers the packing supplies, logistics, and any overlap and carrying costs.
Best Options for Selling a House in NJ
Just like every seller, you would want to close on the deal fast and move on to your new home. There are two options for you to sell your house in New Jersey:
#1: Hire a Real Estate Agent
As a professional, a real estate agent can help you sell fast. “As is” sales may not be something that most homebuyers would want to get into. They cannot haggle on the price, and they worry about discovering a hidden issue that will make living in New Jersey inconvenient for them. A real estate agent can use their sales skills to convince prospective buyers to view your home and then maybe put in an offer.
They can also help you understand the many legal requirements that you have to fulfill in order to sell your house and avoid getting sued over something that you may have overlooked. Real estate agents are more familiar with the paperwork and can save you from making expensive mistakes.
They also have a fiduciary duty to put your best interest first, so you know that they are on your side.
#2: Do it Yourself
Although many real estate professionals advise against this, you can put up your home for sale without hiring an agent. This method is known as “for sale by owner” or FSBO.
Some homeowners choose to do this when selling their home so they can avoid paying the commission fee, or they already have a buyer lined up. FSBO homes are also known to sell up to seven days faster compared to those listed by an agent. But these properties are most likely to have had a buyer lined up.
Selling your home by yourself is not easy, but it is doable. First, make sure that you set a competitive selling price. You will need to do your own market research to get an accurate estimate of the value of your property.
And just because you are selling as is does not mean you can let your home get messy. Do your best to tidy up and keep everything organized. You do not need to spend big bucks to stage your home.
Lastly, you need to expose your home listing to as many people as possible. The easiest way to do this now is by posting it on online platforms such as Mashvisor’s Property Marketplace. When you list your property here, it will be promoted to thousands of real estate investors and other serious buyers who are looking for a house like yours. You will also be able to communicate with potential buyers on this platform to start negotiations and even finalize deals.
The Property Marketplace can also help you with your market research with its large database of off market properties including foreclosures. So even if you are not yet ready to sell your home, feel free to list it on the website. This could increase your chances of selling your home in seven days.
Selling a house as is in NJ allows you to transfer your property at a faster rate so you can move on to your new home. But before you do that, you need to fulfill the legal requirements to disclose the actual conditions of your house. You must also set aside a budget for the possible costs you have to spend on that are related to the sale.
If you can, you might also want to wait for the best time of the year to sell your property. Many homes in New Jersey tend to close faster than average during the months of June and July, but you could also list your property outside of this period. You just need to market the listing to your ideal buyer such as a real estate investor or a home flipper.
And finally, once you are ready to sell your property, you can either hire a real estate agent or do the selling yourself. If you do decide on the latter, listing your home on an online real estate platform such as Mashvisor can help you reach thousands of serious, qualified buyers with minimal effort!