Q: How do I get Started?

A: When considering a purchase at the shore, the first thing you need is information and speaking with a member of the Sea Shore Team is a good place to start. Feel free to give us a call anytime at (609) 263-1431 or visit our website at www.SeaShoreTeam.com to discuss the following so that we can best assist you in finding the perfect home:

Location Preference – Your Timeframe to make a purchase – Obtaining a Mortgage or Purchasing with Cash – Amenities – Price Point – Estimated Settlement Costs- Etc...

Q: What is the New Buyers Representation Agreement?

A: As you may have heard, there are Real Estate practice changes made by the National Association of Realtors (NAR) that went into effect August 17, 2024. This new practice states that every Buyer that is represented by a NAR- Affiliated agent is now required to sign a Buyer Representation Agreement formalizing the relationship between the Buyer and Broker before touring properties. This is something that has been required in many states for over a decade.

Q: Do I need to hire an attorney to assist with a purchase?

A: In Southern New Jersey, Title Companies and Real Estate Agents typically handle the logistics of a transaction. However, many buyers and sellers engage an attorney to represent them by preparing contracts, reviewing documents and sometimes attending settlement. Whether or not to engage an attorney is your decision entirely. In the event an attorney prepares the purchase contract, the attorney review period (which allows either party to cancel within three business days) no longer applies.

Q: How long does it take to get to settlement?

A: A typical closing is between 45 and 60 days, but many are much faster. Mortgage Lenders generally need at least 30 days, while title companies are usually able to close within days to accommodate cash transactions.

Q: Should I get pre-qualified before making an offer on a property?

A: Yes, If you are planning on obtaining a Mortgage to purchase the property. Most Mortgage lenders can pre-qualify a prospective buyer over the phone in minutes. A pre-qualification letter from a mortgage lender will also make a buyers offer on a home even stronger.

Q: Should I use a local Mortgage Lender at the Shore?

A: While you may use any mortgage lender you want for financing, we would recommend using a local lender for ease of transaction. Properties down the shore are a different animal and local lenders have knowledge of the shore market that will help us get to settlement on time without any delays. Below is a recommended list of local mortgage consultants:

Michael Mento (Prosperity Home Mortgage) - (609) 839-1203 or Michael.Mento@phmloans.com

Joe Conlin (US Bank) - (609) 576-7763 or joe.conlin@usbank.com

Kirk George (Wells Fargo)- (609) 226-5715 or arthur.k.george@wellsfargo.com

Q: When is a good time to buy a home at the shore?

A: While Spring and Fall are the traditional "buying seasons", the market remains active throughout most of the year with a lull during the holidays. Searching in the first quarter and closing in April or May is ideal for many, as summers rental income or personal use is immediately available.

On the other hand, a late summer or fall purchase sometimes results in a seller accepting a slightly lower price to avoid carrying expenses over the Winter. Also, keep in mind that properties tend to hit the open market early in the year and after the summer.

Q: What do I need to know about Rentals down the Shore?

A: Family Rentals are generally offered on a weekly or bi-weekly basis, and you should be able to rent a shore house 8-14 weeks per year without any problems. Owners are responsible for providing a cleaning service between tenants.

There is also the option to rent your shore house for the entire summer season to group. In this case, the utilities are typically paid for by the tenant during the life of the lease. These types of rentals typically see a lot more wear and tear than weekly rentals.

There is limited demand for offseason weekend rentals down the shore. The main rental season is between Memorial Day Weekend and Labor Day Weekend.

The Sea Shore Team is the #1 Ranked Rental Team in Sea Isle City. We are able to help you maximize your rental income if you decide to rent your home.

Q: What are the Tax Benefits of purchasing a Shore House?

A: Real Estate is one of the few remaining tax shelters. Mortgage interest on total indebtedness of up to $750,000 is tax deductible. Property taxes are also tax deductible up to $10,000. This applies to Primary and Vacation Homes.

Depending on your income, tax savings through depreciation and interest deductions are derived from rental properties. The ability to offset active income with passive losses is phased out at adjusted gross income levels of $100,000 to $150,000, while loses are carried forward to offset future capital gains. Under section 1031 of the IRS code, owners of investment properties may sell their property and buy a new one or equal or greater value and pay no capital gains tax at that time no matter how large the gain. This is called a "Tax Deferred Exchange." This procedure has strict guidelines. Call us at (609) 263-1431 or check with your tax specialist for details.

Q: What kind of Inspections will I need?

A: Unless you are purchasing a New Construction property or Vacant Land, we would recommend the following Inspections which are responsibility of the buyer. We can assist you in setting these up to meet deadlines in a purchase contract.

Building Inspection: The inspector will generate a report on the structure of the building and check plumbing and electrical components of the building as well as bulkhead if the property is a bay front.

Wood boring Insect Inspection: This is also responsibility of the buyer. The inspector will check the structure and crawl space for any Termite Activity and generate a report.

Q: What happens if the home inspection reveals a major issue with the home?

A: In the event of a major structural, Electrical or Mechanical deficiency with the property, we would make the seller aware of the issue by sending them a copy of the inspection report. We would than ask the seller to either have a licensed professional remedy the issue at the sellers cost or get a couple estimates on what the cost would be to remedy the issue and ask the seller for a monetary credit to buyer for the work to be completed after settlement. However, in the event that the buyer would like to cancel the transaction because of the issue you can do so by hiring an attorney to draft a letter cancelling the transaction based on the home inspection contingency. With everything at stake, it is so important to have a knowledgeable Real Estate agent to help you navigate through this. This is where we put out experience to work for you!

Q: What settlement costs is the Buyer responsible for paying at settlement?

A: In the state of New Jersey, the buyer is responsible for the following at settlement:

Title Insurance: 0.3% - 0.5% of the purchase price

Settlement Fee: $250-$300

Recording Fees: $300-$400

NJ Mansion Tax (1% of the purchase price)- If the sale price of the home your buying is over $1 Million

Lender Fees (if your getting a mortgage)

Buyer Broker Compensation: In the unlikely event that the seller of the property you are purchasing is not offering Compensation to the Buyers Agent Brokerage there will be a negotiated compensation between Buyer and Buyers Agent for services rendered throughout the transaction. This is be outlined in the New Buyers Representation Agreement. See above in regard to the new Buyer Representation Agreement.

Do you have a Home Buying Question that you would like answered?

Contact Us Anytime at (609) 263-1431 or send us an email SeaShoreTeam@lnf.com