We’re dealing with a double crisis right now… not only the ongoing health crisis, but a serious inventory crisis in many markets.

So what if I told you there’s one step you can take to help overcome both at once… .

How?

Basic COVID-19 Safety

Remaining six feet apart from people at all times, committing to wiping down any surfaces that are touched while inside a property to ensure cleanliness for everyone involved.

Buyer & Seller Consultations

We’ve adopted Zoom video conferencing tech to “go virtual” and provide a whole new option to get the process started.

Photography & Marketing

The photographer will only enter when the house is empty and wearing personal protective equipment and not touching anything.

Virtual Open Houses

We’ve transitioned to Virtual Open Houses and Facebook Live Open House Events.

Virtual Buyer Showings

We can “virtually” walk people through homes either through video, virtual tours or other tech solutions such as Matterport.

In-Person Showings

Both sellers and buyers will be interested to know how to proceed with in-person showings. Buyers must have and show pre-qualification to ensure they are qualified and allowed inside a property as a serious buyer. Appointments will be arranged with seller and depending on how the seller wants to show the house, either virtually where they do a video walk through or they will allow entrance into the house. When inside the house during the showing the buyer and agent will be wearing protective equipment while the sellers are out. If itis a vacant house agent and buyer can enter with appointment. Both scenarios the buyer must sign off on a hold harmless document BEFORE entering.

Offers & Closing Day

All documents will be done and signed electronically. This method simplifies the process and provides a “no-touch” experience.

Walkthroughs / Inspection / Appraisal

Similar to the photography section above, all vendors will be wearing protective equipment and not touch anything or wipe after they touch.

If you are planning on buying a home in Monmouth County in the coming months and you know you'll need to borrow money, does this mean you are at a  disadvantage to the buyers who are currently paying cash?

Well, not if you know how to be a cash buyer with little or no money of your own!

Why is cash King?

Have you ever wondered why, they say that cash is king in real estate?

In order to understand this phenomenon, where a seller will take a lower price from one buyer than he could have received from another, you first have to consider the motives of most home sellers. What exactly do they want?

Home sellers are people who have their own unique set of circumstances that drive their motivation to sell a home. Sure, the majority of sellers prefer "more money" to "less money," however money is rarely the TOP motivating reason for a sale.

A cash buyer represents a stronger buyer to most sellers because there are fewer people involved who can "screw up the deal." When a seller says yes to a cash buyer, there isn't a lender that's going to kill the sale because of something the buyer did in the past. There isn't likely to be an appraiser who's going to appraise the property too low to make sure the bank is happy with it. Simply put, a buyer with cash is making a stronger offer than somebody who requires the approval of another.

How To Position Yourself to Become As Good As A Cash Buyer

So understanding the seller's motivation is the first step to getting the best deal when buying a home. We know that the home seller does not really care who's money comes to the closing table, the seller merely wants the strongest assurance that it will arrive on time, as agreed upon in the contract.

Buyers have tried in the past to include "pre-qualification" or "pre-approval" letters from lenders in order to reduce the concern about funds, these letters are not binding and thus are not valuable. Why? Because the buyer has yet to go through an underwriting process with a lender to determine their true capability to borrow the funds.

When a buyer goes to a mortgage provider and gets fully qualified for a loan, to include full underwriting, so that money would no longer be an issue that can provide the exact same benefit to a seller as the seller would receive from a cash buyer. Wouldn't that be great?

I have found a lender who will do just that. They will take you through a full loan application and put you in the exact same position as a cash buyer. Be able to close after going through your due-diligence, no need to wait for the loan application process, as it will already be completed!

https://form.jotform.com/jsform/60195305186152

This is a game changer in a very active market.

Doing this will make fast closings an option, so buyers who are financing their purchase will now be able to explore the entire market.
Distressed properties where banks just want out … no problem, let's close next week!

There are so many situations where being a cash buyer has benefits, and doing this brings those benefits to people who are willing to use a smarter home buying process.

Some Questions that may come up…

How long is this underwritten loan good for? from the time the credit report is run 4 months.

Why 4 months? By that time your bank statements, credit report ad pay stubs are out of date.

Can I update my bank statements, and pay stubs? Yes! and a new credit report has to be run.

Having said that you must make sure you do nothing to change your credit during this time for example do not close or open credit accounts, do not buy anything major items such as furniture. This will definitely alter your credit report.

Want to know more? Either fill the form out above or drop me a note and we'll get in touch with you right away.

Welcome to the world of being a cash buyer in real estate!

Gloria Benaroch is a 25 year veteran of real estate brokerage in the State of New Jersey  She is a blogger with content that focuses on real estate, analytics, techie and provides her clients with a planned advantage in today's challenging market.

1. Quality of life – a home provides stability and security for you and your loved ones, and membership within a community of neighbors.
2. Pride of home ownership – a home is a personal haven, a place that you can decorate, shape, and share over time because it’s yours.
3. Excellent affordability – lower home prices combined with low interest rates means there are tremendous opportunities for buyers.
4. Historically low interest rates – around 5 percent in the U.S. gives better purchasing power to those who qualify.
5. Appreciation potential – your home investment can grow in value.
6. Equity buildup and debt pay down – homeowners enjoy an average net worth of approximately $184,000 vs. $4,000 for renters.
7. Leverage – where else can you buy an investment of this magnitude with 5-10 percent down?
8. Tax deduction advantages – property tax and mortgage interest write-offs (in Canada, home owners gain a tax benefit upon selling).
9. Tax exemption – up to $500,000 per married couple or $250,000 per person on sale of a primary residence in the United States (no tax upon sale in Canada).
10. The real cost of renting – at $800 per month, with the average
    6 percent rental increase per year, you will pay $126,536 over a 10-year period but have zero ownership of the property.