RESOURCES FOR BUYERS
These resources are here to guide you from contract to close - so nothing feels overwhelming or mysterious.
Common Appraisal Questions
Q: When will my Appraisal be scheduled?
A: The appraiser is chosen by the lending company. The lender schedules the appraisal. Most commonly, you will tell your lender to proceed with the appraisal after your attorney has submitted the letter of inspection issues to the seller, and you feel optimistic that the sale is going forward.
Q: Who should attend?
A: You do not need to attend the appraisal. The PPG Team will coordinate with the appraiser, confirm the appointment with the Sellers in order to gain access to the home and provide comparable properties and necessary paperwork to the appraiser, as requested.
Q: Who pays for the Appraisal?
A: The charge for the appraisal is usually $450. You will pay for this service at closing as a part of your lender closing costs.
Q: How do they come up with an accurate price for the Appraisal?
A: The appraiser reviews "sold" comparables, located near the home you're purchasing. He/She will look at the square footage, number of bedrooms, number of bathrooms, finished attic, condition of the home, and basement finishings etc. to determine the value for loan purposes.
Q: Who receives the Appraisal?
A: The Lender receives the report and sends it to you. The PPG Team only gets the report if you send it to us, so please forward to us for your file upon receipt. Thank you!
Home Inspection Questions
Q: Who schedules the Home Inspection?
A: You, the Buyer will want to schedule the Home Inspection. You will attend along with a PPG Team member. This is
your opportunity to learn about the home. It takes about 3 hours. Our Team will provide a list of trusted inspectors.
Q: When is the Home Inspection conducted?
A: We recommend that you interview and select your Home Inspector while in Attorney Review. Once Attorney Review has concluded, you have a window of time (outlined in your contract of sale) to conduct your home inspection and set up any secondary inspections.
Example: If your Attorney Review begins on Tuesday, set up Home Inspection for the following Monday. During busy selling seasons the Inspectors can be difficult to schedule. Be proactive!
Q: What is the charge for a home inspection?
A: Inspection fees will vary. Some inspections include more services than others. There are separate charges for general Home Inspection, Tank Sweep, Radon and Termite Inspections. Your agent can. explain this in more detail after you choose the inspector.
Q: What should we bring to the Home Inspection?
A: You will learn a lot about your home during the inspection. Be prepared. Bring a pad, pen, or your tablet as well as water and snacks. This is an opportunity to measure and think about paint colors, so you may want to bring along your tape measure and color swatches! Remember to bring your checkbook with a few separate checks available for the various contractors. Best to leave the kids at home; you will want to be distraction-free.
Q: Who gets the Home Inspection report?
A: The written report is delivered to you. Then, you should send a copy to your attorney and a copy to your agent. A copy is not given to the sellers. You, your attorney and your agent discuss and plan. next steps.
Q: How long until we receive the Home Inspection report?
A: Turnaround time varies anywhere from 24 hours to 1 week. Ask your Inspector when you can expect to receive it.
Q: How should we approach the Home Inspection report?
A: A lengthy Home Inspection report can be overwhelming. It is important that you identify the differences between "honey do" lists and mechanical, structural and environmental issues. Sorting through the report will make secondary estimates (explained below) clear - and it will give you a better understanding of your new home. Look for the summary at the end of each section, alerting you to issues needing further inspection.
Q: What happens if we find something is broken or faulty?
A: When something is broken or faulty, depending on issue, you will want to get a secondary estimate to determine the cost of repair or replacement.
Q: What is meant by limiting inspection issues to mechanical, structural, and environmental only? And why are these limits placed?
A: Mechanical refers to systems that make the house "work" and includes furnace/boiler, plumbing, central air, and chimney. Structural refers to the foundation, roof, and architectural integrity. Environmental refers to asbestos, mold, oil tanks, sewer lines and sump pumps.
Often Buyers will limit the inspection to these "big ticket items" only because you are buying in a competitive market.
Q: For what issues should we get secondary estimates?
A: Most Home Inspectors will tell you which issues are more important than others. A good rule of thumb to keep in mind: If the issue harms the integrity of the house, is defective, not to code or is a potential safety issue, schedule a secondary inspection. Your contract may also specify which issues can be negotiated, and which are "as is".
Q: Who pays for secondary estimates?
A: You will pay for secondary inspection estimates, but many estimates will be free or if there is a fee, it may be applied to the work if you choose the contractor.
Q: Can I call the Home Inspector with follow-up questions?
A: Yes, absolutely. You are paying for this service, so when you have the written report, feel free to call and ask follow-up questions. Take your own notes and review the inspection with him/her. Also, reach out to your agent. In some cases, we may have the inspector return to the house to reinspect after repairs have been made.
Q: What is the Attorney's Inspection Letter?
A: The Inspection letter is the letter prepared by your attorney after the home inspection. It will include any secondary estimates your ordered. This letter will accompany your copy of the written Home Inspection report. This will be the first time the sellers will learn about any negotiable issues. The deadline for this letter is established by your initial contract.
Q: How fast do we have to get the inspection letter to the attorney?
A: The deadline for your inspection letter is established by your original contract. It is usually 7 to 14 calendar days after Attorney Review is complete and you are under contract.
Q: What if the estimates are not finished in time?
A: When time limits become a problem, your attorney may write for an extension.
Q: Do we have to take the house "as is"? If not, how does that negotiation process work?
A: When you enter into a contract with an "as is" clause, negotiations are limited. However, when issues of safety are a concern there are exceptions. These circumstances are best handled through your attorney.
Q: How do credits and concessions work?
A: Credits and concessions vary from transaction to transaction. A credit at closing is for repairs given to the buyer from the seller to cover the cost of the inspection issues. The purchaser may request seller concessions during contract negotiations, or the seller may have offered a concession during the listing process. In a buyer's market, seller concessions often reduce the overall purchase price of the property; in a seller's market, a buyer may ask for an increase in the purchase price to offset the cost of a requested seller concession. Any changes become an addendum to your original contract.
Approximate Closing Costs
Closing costs are determined by your lender and attorney. The costs can vary based on loan fees, tax amounts, and other factors. General closing costs are calculated at approximately 2% of the purchase price. (ex. $800,000 = $16,000)
Here’s how the numbers break down:
Lender Fees:
$2,500 average (including lender fee, appraisal fee and credit checks, tax transfer, and flood certificate)
Attorney Fees:
$2,000 - $2,500 average
Property Taxes + First Year Homeowners’ Insurance Policy:
This is based on your purchase price. On average, buyers should budget four months of property taxes, three months of homeowners’ insurance, plus the cost of the first year policy.
Title & Recording Fees:
$7,500 average (recording fee with the county and title work will be dependent upon the exact purchase price for the property)
On occasion, you may also consider covering these costs as part of a competitive offer:
Buyer Agent Compensation:
You should have an agreement with your buyer agent about compensation as a percentage of the purchase price. This fee may be covered by the buyer, the seller, or a combination of both, depending on the terms of the agreement.
NJ Mansion Tax:
Historically paid by the buyer, this tax is now the responsibility of the seller and is calculated as a percentage of the purchase price.
*Please note that this closing cost list is an approximation and your final closing costs are determined by your lender and attorney - they vary Buyer to Buyer, based on your loan fees, property tax amounts, etc. This is purely a guide and are not exact amounts.
For questions:
📩 Contact us at PollockPropertiesGroup.com
💬 DM us anytime
Connect with us through our social media platforms:
Instagram: @pollockpropertiesgroup.com
Facebook: Pollock Properties Group
Subscribe to our newsletter for weekly updates and insights.
