NJ Real Estate: How to Make a Successful Lowball Offer

When it comes to purchasing a home, buyers always want to know: How low is too low for an initial offer? Money conscious buyers are looking to save, but they also don’t want to risk offending a seller with an offer than is too low. So how much below asking price can you really offer? Here are some examples of when it would be acceptable to put in a low ball offer.

Offering even 1% to 4% below asking price can save you thousands of dollars depending on the price of the home. While this might not seem like a lot in the grand scheme of things, it could impact your mortgage payment by a couple of hundred dollars every month. Offering below list price in this range is a good idea if there are multiple offers on the table.

If you are thinking of offering 5% to 10% below asking price, you should have comparable sales as negotiation tools to justify your lowball offer. If other homes in the area have additional features but are priced the same or lower, that’s a great argument for offering less. You could also offer 5% to 10% less if the house has been on the market for several weeks without much interest or if it is a buyer’s market.

When you ask for 11% to 19% off the price of a home, you could save tens of thousands of dollars. This offer is reasonable when some aesthetic updates need to be made, but the house is otherwise in good shape. If the house is straight out of the 70s or needs new flooring in a few rooms, this is a great negotiation tool. If you know the seller is desperate to sell due to financial or personal circumstances, you could throw out an offer in this range and see what happens.

An offer that is 20% or more below the asking price, must be justifiable with some good, solid reasons. A multitude of factors will go into negotiating this offer. A strong buyer’s market and a house that has been on the market for six months or more are good indications a seller will accept a significantly lower offer. If the home is in bad shape and needs extensive repairs, you have a lot of room for negotiating a listing price down. Significant repairs would include a roof that needs to be replaced, foundation issues, or if the electrical, plumbing, or heating systems are not up to code.

A skilled NJ real estate agent will be able to guide you as you determine what is a reasonable offer below asking price. It is possible to get the home of your dreams while still getting the best deal possible.

As always, if you need guidance in this area, Veitengruber Law can direct you to one of the many NJ realtors within our professional network. Once you have made an offer, we will review all paperwork and contracts to ensure that you truly are getting the best deal possible!

NJ Real Estate: Hidden Fees and Costs You Need to Know About

nj real estate

Your home is likely to be the most expensive financial investment you will make in your life. Just a few of the “hidden charges” in buying a home include: closing costs, property taxes, home owner’s insurance, and fees charged by a variety of experts throughout the purchasing process. For the unsuspecting home buyer, hidden fees and miscellaneous costs associated with buying a home can come as a big shock. To help you budget for this major purchase, we’ve compiled a descriptive list of some costs you might not be preparing for.

Closing Costs

The time it actually takes to close on a property is typically somewhere between 30 and 60 days. During this time, the sale is considered to be pending as you work out the details with the seller. At the end of the closing process you’ll make a major payment towards your new home in the form of closing costs. Closing costs typically range anywhere from 2% to 5% of the purchase price of the home. The charges included in closing costs can include fees for appraisal, wire transfers, credit report assessment, title insurance, document preparation, and many other closing-related processes.

Home Inspection Fees

While a home inspection isn’t a requirement, unless you happen to be an expert real estate inspector, hiring a professional is something you should really consider. You will be able to purchase the home with confidence in its condition or save yourself money in repair costs by alerting to seller to necessary repairs. Putting aside money in your budget for a home inspection can save you a lot of money in the long run.

Home Owner’s Association (HOA) Fees

If your home is located in a gated community, chances are high you will be required to join the HOA. Monthly HOA fees go toward community maintenance and repair of common areas, like sidewalks, entrance-ways, parking areas, and landscaping. Some HOA fees can be surprisingly pricey so it is important to know about them before you sign the dotted line.

Property Taxes

Depending on where you live, property taxes can cost you a lot. New Jersey is well-known for having very high property taxes across the state, but some areas of NJ have more reasonable tax rates. The average property tax bill in NJ ranged from $450 in Walpack Township, Sussex County to nearly $32,000 in Tavistock Borough, Camden County. Pay attention to the property taxes in the area you are looking to buy. It can make a huge difference in your bottom line.

Real Estate Agent Fees

Real estate agents make a living via commission. The average rate of commission in NJ is 5-6% of a home’s sale price. Real estate agents on both sides will be offered part of the commission. Both agents will be paid out by money the buyer gives the seller for the home at the time of closing. It is the seller’s responsibility to ensure both agents get their commissions out of this money. The rate of commission is pre-determined and agreed upon by both sides before closing. For instance, if it is decided the seller’s agent will receive a 3% commission and the buyer’s agent will receive a 2.5% commission on the sale of a $210,000 home, the seller’s agent will receive $6,300 and the buyer’s agent will receive $5,250.

These are only some of the hidden costs associated with purchasing a home. You don’t want to be blindsided by financial pitfalls after you find your dream home. If you’re thinking about buying a home, or if you’ve already signed a contract and you’re in the attorney review period, we’re more than happy to look over the contract for you and answer any questions you may have. Visit our website and call us at the location that is most convenient for you – we have offices in Wall, Bordentown, and Metuchen.

What Generation Z is Looking for in NJ Real Estate

nj real estate

The real estate market is gearing up to welcome a new generation of home buyers: Generation Z. This generation, born between 1997 and 2012, are now buying around 2% of homes on the market. That might not sound like much now, but this money-conscious group is poised to become a major NJ real estate purchasing force in the years to come. As the oldest in this group finish college and start jobs, homeownership is the next big move. Here is what Generation Z is looking for in a home.

The big thing to note with this group is that they are interested in single family homes in diverse communities. A survey taken by Homes.com indicated that living in a diverse community was important for 58% of Gen Z survey takers. Instead of condos, townhomes, or apartments, Gen Z largely expects a single family home to be their starter home. Amenities desired by Gen Z included a backyard with a deck or patio, open floor plans, a garage, and hardwood floors.

Something not on their list? Smart home technology. Surprising many real estate experts, smart home tech ranked low on a list of desired amenities, along with eco-friendly appliances.

This generation may be the most informed first time home buyers ever. Being essentially born with smart phones in their hands, this tech savvy group knows more than ever about the home buying process. Even Gen Z buyers new to real estate have likely done some research before approaching a realtor. This also makes them discerning potential buyers: they know what they want and they are willing to spend some time looking for it.

In 2019, Gen Zers were buying starter homes costing on average $160,600, an 11% increase from 2018. This generation, in general, is looking for inexpensive homes in New Jersey towns with strong local economies and low crime rates. Many Gen Zers are looking to settle in the areas around where they went to school, making college and university towns a popular choice.

The financial position of Generation Z may be the only thing holding them back from entering the real estate market. While they tend to be in a better financial position entering their mid-20s than the Millennial generation that came before them, they still have student loan debt to grapple with. With some student loan payments equaling a typical mortgage payment, this is a tall hurdle to jump. On average, Gen Z home buyers are putting only 5% down on real estate purchases, meaning they are likely relying on private mortgage insurance (PMI) to pay for their homes.

Right now, most of the future home buyers in Generation Z are focused on experiences, travel, and paying off their loans instead of purchasing real estate. While they are in no rush to purchase a home right now, this unique demographic of home buyers will be hitting the market before you know it. You can count on them looking for New Jersey communities with easy access to the arts, entertainment, and Instagram-able experiences.

Mortgage Co-signer vs Co-borrower: What’s the Difference?

mortgage co-signer

If a bank is on the fence about approving a loan, they may ask the borrower if there is anyone who can share responsibility of the loan. Including multiple people on your loan application can increase your chances of getting the loan accepted. While many people think co-signers and co-borrowers are the same thing, these are two very different roles in the eyes of a lender. To decide which option is best for you and those helping you get the loan, it helps to compare the two roles.

A co-signer is someone who guarantees a loan for someone else. This means that the co-signer is agreeing to take responsibility for paying off the loan in the event the primary borrower fails to do so. With more resources available to pay back the loan, the lender will be more confident in receiving payment. A co-signer does not have title or ownership over any items acquired with the loan.

A co-borrower is one of at least two primary borrowers. For example, if a couple is buying a home together, they can apply for a loan as co-borrowers. Like co-signers, co-borrowers are responsible for the loan even if the other primary borrowers do not meet agreed upon payments. Unlike co-signers, a co-borrower will have an ownership interest in the property being purchased.

While both a co-signer and a co-borrower can help you when it comes to qualifying for a loan, there are some differences in the risks associated with the responsibilities of co-borrowers and co-signers.

It is important to understand as a co-signer that you are essentially taking on an all risk, no reward deal in which you could be responsible for paying off a loan with no benefit to yourself. If you co-sign to help someone buy a car, it’s their car—and if they stop paying on the loan, it is your responsibility to pay for their car. More than just paying the loan balance and interest, you can also be charged for late fees and other charges if the primary borrower has stopped making payments. Co-signing can also negatively impact your ability to borrow or your ability to get preferable terms on new lines of credit.

For co-borrowers, the risk is a little more personal. Because you are combining financial resources with someone else, co-borrowing can allow you to get approved for a loan that is much bigger than you could pay by yourself. Tragic accidents, bad break-ups, and any other number of difficult circumstances can leave you with a loan that is outside of your financial capacity. It can be very difficult to remove someone’s name from a loan, forcing you to sell the shared property or go through a time-consuming refinance in order to pay off the loan.

The bottom line is if you need someone to co-sign or co-borrow in order to secure a loan, you need to make sure it is someone you trust. Communicate fully the responsibilities associated with each role and confirm they feel comfortable adding their name onto the loan application. Keeping up regular communication with this person about the status of the loan can ensure you are on the same page, which is important since they are invested in the mortgage, too.

Retire in New Jersey in a 55+ Community

retire in new jersey

As we get older, we often find we need different things out of our homes and communities than a traditional community can offer. Maybe you need to live on one floor, near people your own age with similar interests, or you just want to be able to enjoy some peace and quiet. If this sounds like you, it might be time to look into a 55+ community. A retirement community can provide the services and amenities to help maintain your quality of life for longer.

New Jersey is full of beautifully appealing housing options for the 55+ community. Many new developments include single family homes so you can maintain your independence while enjoying the services and comforts of a community geared towards your needs. Choosing a retirement community does not mean your options are limited; in fact, you can find your dream home in the ideal location!

Here is how to find the right 55+ community in New Jersey:

1. Consider Your Lifestyle.

Your health, physical abilities, and other age-related concerns will likely dictate what kind of community you are looking for and the services it provides. Community age limits range from 50 years old to 90 years old or more and the offerings of these communities are just as varied. Many retirees are looking for a community where they can maintain an active social life while getting more assistance in other areas of their life, like cleaning, cooking, yard maintenance, and transportation. Other retirees are looking for peace and quiet and the time to relax alone with minimal care options. No matter what you are looking for, a representative from the community can discuss their available benefits and care options so you can decide if it meets your needs.

2. Carefully Research Amenities and Association Fees.

Always look into the amenities when you are deciding on a retirement community. After all, these are often the big appeal of a retirement community in the first place. Think about how these amenities can fit into your lifestyle and give you the biggest bang for your buck. Common 55+ amenities include: fitness centers, salons and spas, dining options, social centers, spiritual services, and activity programs. Be sure which services and utilities are included in your association fees. Many NJ retirement communities charge low HOA fees, but some can be pricey, so it’s important to do your homework.

3. Hire an Experienced Real Estate Expert.

An experienced real estate agent can help you find a 55+ community in an area you are familiar with, close to family, and with the benefits and care options to match your lifestyle. The real estate experts in our professional network will ensure that you are matched with a community that is worth your hard-earned money. When you work with the right professionals, you can retire in New Jersey in style!

 

How to Invest in NJ Real Estate for Retirement

nj real estate

Investing in real estate can be as rewarding as it can be stressful and intimidating. If you are close to retirement or newly retired, investing in a new real estate venture can be especially complex. A real estate investment for retirement needs to meet specific needs. Not only does your asset need to be a relatively sure thing, it also needs to be able to keep up with inflation. Many retirees look to real estate investments to provide supplemental income. There is a lot to consider if you are thinking of investing in NJ real estate for retirement. Here is what you need to think about.

1. Do you own your own home?

Most of the time, your home is your most valuable asset. More than savings or other luxury assets, your home has the potential to help fund your retirement. If you are in the position of owning your own home, you might already be sitting in the best real estate investment you could find. There are tons of different ways to use your home’s equity to generate income that will allow you to live more comfortably in retirement. You can downsize your home or use your home equity to fund long term care needs, amongst other things.

2. Buy It, Improve It, Flip It

Flipping is a popular way to get into the real estate game at any age. Also called wholesale real estate living, flipping is when you purchase a property with the intention of selling it to make a profit. If you know what you are doing and can invest in the improvement of a property, flipping can be a lucrative way to fund your retirement. But be wary of some common pitfalls when it comes to flipping homes. You need to have adequate real estate knowledge, home improvement skills, financial savvy, and cash up front to have a successful flip.

3. Residential Rentals

Another popular way to make your real estate investments work for you in retirement is to rent out your property to long-term renters. Long-term renters offer more stability and assurance that you will be able to meet your bottom line every month. Your renters need to be willing to pay enough to cover the mortgage on the property along with insurance, taxes, and regular maintenance. A rental property can provide a monthly flow of cash and can perform better than investing in the stock market. But you have to be prepared for the work and stress that can come with owning a rental property. Needy tenants or long-term vacancies can negatively impact your investment.

4. Commercial Rentals

Some real estate experts will say that owning commercial property can be more lucrative than residential real estate investments. There is certainly more risk and potential for complications—multiple tenants, commercial licensing requirements, long-term vacancies—but renting out commercial real estate can be a great way to generate retirement income. On the other hand, if you purchase commercial property, you could also consider running your own business. One of the biggest expenses of running a business is paying for the real estate. If you own the building outright, it could give you more financial freedom to grow the business you’ve always dreamed of.

5. Buy a Vacation Home to Rent

If you’ve always dreamed of owning a beach house or a cabin in the mountains, purchasing a vacation home and renting it for part of the year can allow you to have your cake and eat it, too. Renters looking for vacation homes are often willing to pay a premium for the right location. You could potentially make just as much money renting for a few weeks out of the year as you could renting year round with residential real estate. Keep in mind that vacation rentals tend to be seasonal money makers and are usually more expensive to maintain than residential investments.

Investing in real estate can be a great way to generate income during the retirement years. Veitengruber Law is an experienced real estate firm. We can help you with your real estate and financial planning goals.

NJ Real Estate Market is HOT as Weather Turns Cold

NJ real estate

In general, the real estate market tends to cool off with the weather. New Jersey sees some messy winters and it isn’t uncommon for low temperatures to keep people bundled up in their (current) homes. It’s true that some people looking for real estate in NJ will wait until the warmer months to pursue their real estate goals. But this year might see some atypical market trends emerging during the winter months. Being aware of these trends can help you successfully sell your home even when there’s a chill in the air. Here are some things you can watch for this winter.

1. Fewer Homes on the Market

Most people want to list their homes during the spring and summer months due to the commonly held belief that more potential buyers are house shopping in the warmer seasons. Because buyers know this, some may wait until the chilly season passes to seriously look for their dream home. However, less homes listed for sale doesn’t mean that your home won’t sell. In fact, when there are fewer homes on the market, buyers who are looking will be more inclined to take a second look at what you have to offer.

2. Carryover Into the New Year

Unlike previous years, real estate insiders expect the winter months this year to be busier than normal. Thus far in 2019, there were more people looking for houses than there were homes on the market. Buyers that weren’t able to purchase a home during the popular summer months will still be on the lookout for their dream property. Because of this, the market is rich with buyers and will be well into the winter months. This winter could be very profitable for the seller willing to keep their house open through the colder months.

3. “Interested Parties Only”

While there will be more buyers in this year’s winter market than normal, there are still less interested parties than in the spring and summer months. The holidays and cold weather tend to slow down the market. Buyers who are still looking in the winter are generally more serious about making a move and they know they’ll have less competition for homes during this time of the year.

4. You May Be More Motivated to Accept an Offer

If you have had your home listed for awhile, chances are good that you are eager to get the property sold. The longer a property sits on the market, the more it costs any owner. As your motivation to sell increases, you’ll likely find that you are willing to compromise a little more so that you can ultimately make the sale happen.

5. Real Estate Prices Are Rising

Zillow predicts that NJ home valuations and sale prices will increase another 1% as we round the corner into 2020. Specifically, single family homes will be in hot demand throughout this winter and into the warmer months of this upcoming spring and summer. Because demand looks like it will continue steadily, prices are only expected to rise further as we move through 2020, which is great news for sellers!

Neighborhoods throughout New Jersey are experiencing a hot market for real estate this winter. If you are thinking about buying or selling a property this season, Veitengruber Law has you covered. Your real estate plans don’t have to freeze with the temperatures. When you need us to look over your real estate contract, title paperwork and/or attend closing – we’re here for you no matter how frightful the weather.

Top 5 Reasons to List Your NJ Home for Sale This Winter

Spring time is widely considered the best time to sell a house. Potential buyers are looking to take advantage of the warmer months for a big move. But if you are looking to sell your home, you don’t necessarily need to wait for the weather to warm up before you enter the real estate market. In New Jersey, selling your home during the colder months has some great advantages. Here are five reasons to sell your home this winter.

  1. Less Competition

With most people putting their homes up for sale in the spring, the market is super crowded with plenty of options. On the other hand, there is typically a low inventory throughout the winter months. One of the best reasons to list your home when temperatures drop is you will have less competition. With fewer homes for sale, there is a better chance your home will not get overlooked by potential buyers. It will be easier for you to grab buyers’ attention and keep it if you sell during the winter.

  1. Growing Families

September is on average the most popular month of the year to have a baby. Any parent knows how quickly a home can “shrink” with the addition of a new baby. This means that growing families are more likely to be looking for a bigger home at the end of the year. These buyers are motivated by running out of space and a time crunch to get moved and settled before the next school year.

  1. Serious Home Buyers

Not every single person who looks at a home for sale is actually looking to buy. Some people start viewing homes while they’re still contemplating whether or not they really want to buy a home. Since homes tend to go on the market in the spring, this is also when real estate window shoppers are the most abundant. On the flip side, those who are viewing houses in the colder months tend to be serious. Buyers who are ready to move don’t want to miss out on a great house by waiting until the spring.

  1. End of Year Financial Payouts

Year-end performance reviews and holiday bonuses mean a potential buyer has more money to work with when buying a home. First time buyers might be waiting for these payouts to go towards a down payment. Homeowners who receive a raise might be looking to upgrade their living situation. Financially flush buyers are more likely to be serious about a real estate purchase.

  1. Corporate Relocation

In New Jersey, the end of January and beginning of February are statistically the most popular time for job relocations. These buyers need to move quickly and are very motivated to find a home close to their new placement. Once these buyers find a home to meet their requirements, they are normally ready to sign on the dotted line. This urgency can be a great advantage for someone selling a house in the winter months.

If you are thinking about selling your home, there is no better time than now! Don’t be intimidated by a supposedly tougher winter market. There are plenty of buyers looking for a new home during the colder months. Veitengruber Law is a full service real estate law firm any time of the year. If you are selling a house this winter, don’t close without the help of our experienced real estate team. We are ready to sit down with you for a free consultation to discuss your real estate goals.

Financing a Home as a Single Parent: What are my Options?

home ownership

Being a single parent isn’t easy. There are many unique financial challenges single moms and dads face as a one income household. For many single parents, buying a home can truly seem like an impossibility. But don’t give up on your dream of homeownership just yet. There are plenty of loan and assistance programs single parents can take advantage of, you just need to know where to look. In New Jersey, there are many state and federal assistance programs for home buyers with specific circumstances. While none of these categories explicitly list “single parents,” they can be a great benefit for those looking to buy a home with one income.

HUD 

One of the best places for single parents to start their home search is the U.S. Department of Housing and Urban Development (HUD). Contacting your local New Jersey HUD office can give you access to resources that will help you find housing options as well as demystify the home-buying process. A HUD housing counselor can fill you in on local home buying programs you might not be aware of or help you obtain a loan. Some single parents may also qualify for subsidies and extra assistance that will help you afford decent housing (depending on your income and employment).

FHA

Federal Housing Administration (FHA) loans are popular for many first time home-buyers, including singles on their own as well as single parents. FHA loans are government insured and easier to qualify for than other similar loans. There are many benefits associated with FHA loans that make them appealing to single parents, including a 3.5% down payment, lower credit score minimums, and low monthly mortgage insurance rates. FHA loans are also flexible about how a first-time homebuyer is defined. If you are recently divorced or become a displaced homemaker, you can qualify as a first-time homebuyer as long as the only residence you’ve ever owned was with a former spouse.

VA

Veteran Affairs (VA) loans are also an excellent resource for single parents. If you are a single service member, a veteran, or the surviving spouse of a veteran, you could be eligible for VA loan programs. There are a number of benefits for qualified buyers, including waived down payments and mortgage insurance, low-interest rates, and on-going support throughout home ownership. If you are facing foreclosure, the VA can step in to help you keep your home or find a new residence. In the event of a work-related disability, there may be additional Veteran’s benefits you can take advantage of.

USDA

The United States Department of Agriculture (USDA) offers a few different programs for low- and moderate-income home buyers in rural areas. Even if you aren’t sure that you live in a “rural” area, the USDA’s programs are still worth looking into. Many of the regions where programs are offered are located just outside major cities. USDA loan programs offer low interest rates and zero down payment options. Qualified borrowers can get 100% financing and the mortgage insurance premium is one of the lowest offered in any program. USDA loans do have an income maximum, but most single parents do not meet this maximum.

Private Lenders

Some private lenders will offer loan programs for single income borrowers. These custom loan programs can cater terms to your specific needs to help ensure that loan applicants get pre-approved for a mortgage. These custom loan programs can include help with your credit score or assistance with your down payment, among other things. While not all lenders will offer these kinds of programs for single parents, it is worth looking into as you begin your home search.

 

As a single parent, you aren’t limited to these programs. Your county, city, or even township might offer their own programs to help the single parent home buyer. Don’t lose hope in your dreams of owning a home. If you would like help getting started or with the application process, Veitengruber Law is more than happy to help you get on the path to home ownership!

 

 

 

 

 

 

 

How NJ Title Insurance Protects You from Hidden Ownership Hazards

When purchasing real estate in New Jersey, it is imperative that buyers take care to familiarize themselves with the lengthy checklist of steps that must be completed throughout the process of purchasing a home. Neglecting to do so can result in delays, missed deadlines, or additional fees.

One of these important tasks is purchasing title insurance. However, if buyers encounter this fee as an unexpected add-on, they may resent it, or even wonder if title insurance is necessary at all. Of course, title insurance is necessary because it provides a financial shield against a slew of potential pitfalls, even title-related issues that could crop up down the road.

Questions related to title insurance often include:

Before the closing date, there is going to be a title search. What does that mean?

The party listed on a home’s title is the rightful owner of the property. When your NJ real estate attorney or the title insurance company performs a title search on a property before the sale, they are attempting to find anything in the home’s history that could become problematic when it’s time to transfer the title.

This is a preliminary examination, but it is quite thorough. Records commonly examined include divorce agreements, judgments, liens, tax records, trusts, wills, and yes, deeds. If there is an obstacle that is fairly minor (remaining liens, clerical errors, or missing signatures), it can often be quickly remedied. In such cases, a sale can usually proceed unencumbered.

The initial title search was clear. Do I still need title insurance?

Even when a title search is initially clear, it is nearly impossible for even the most thorough of title searches to fully eliminate the potential for future conflict. A contesting claim can be filed for a number of reasons, including clerical errors, newly-discovered family connections, and estate planning mistakes. Unfortunately, such a claim could crop up at any point – even years after you’ve closed on the home.

Additionally, all reputable lenders will require you to secure title insurance before they will even consider your mortgage request, and NJ real estate attorneys simply won’t represent you if you are unable to secure it. No attorney wants to take on a client who has left themselves so vulnerable to unpredictable future events.

Title insurance can sound superfluous at first, but clearly, it is an absolutely essential cog in the machinery of actions that represent responsible, successful home ownership.

What does title insurance cover?

A standard owner’s title insurance policy normally protects you financially in the event of any of the following:

  • Displacement by a contesting claimant
  • Forgery and fraud with regard to prior documentation
  • Clerical or typographical errors
  • Mistakes on records or in methods of record-keeping
  • Outstanding liens or legal judgments
  • Restrictive covenants, i.e. easements that have been undocumented

If something goes wrong with the title years from now, how can title insurance help?

Your policy will be your safety net, even if a long-buried issue crops up down the line and presents a valid obstruction to your ownership.

Now, a long-lost party can still take a claim to the courts; if they happen to win ownership of the property, your policy will pay off the remaining balance on your mortgage. If you have also taken out a homeowner’s insurance policy, that will be activated as well, so that some – or perhaps all – of the money you’ve invested (i.e. down payments and mortgage payments) can be recovered.

What is the total cost of title insurance?

The lender’s policy will cost a one-time initial cost of roughly $1,000. An owner’s policy costs less than $100. Even if you never file a claim against your policy, though, this is still money well spent.

Why? Because on the (admittedly small) chance that a missed claim does crop up and catches you without title insurance, you stand to lose a large sum of money as well as the home you’ve fallen in love with.

Who should I speak to about purchasing title insurance?

Your escrow or closing agent will pursue title insurance for you once your purchasing agreement for your new property has been completed. Feel free to reach out to us at Veitengruber Law if you have questions about title insurance, title searches, or any other aspect of the New Jersey real estate process!