Long Beach Island Real Estate Cash Offers
LBI Real Estate Cash OffersLong Beach Island Real Estate
The LBI real estate market has been witnessing a period of strong activity and highly competitive offers for prime property. The real estate market on Long Beach Island has always been a competitive market however since Hurricane Sandy, there has been an unprecedented wave of new construction. This change has helped to increase property values throughout the LBI real estate market. This is especially prevalent in vacant land or tear down properties where buyers seek out older homes for the purpose of demolition and reconstruction of a new home. In many of these transactions, we will typically see offers which can put buyers with a mortgage at a disadvantage throughout the negotiation. Fortunately, there are ways to strengthen your position when dealing with LBI real estate cash offers.
LBI Real Estate Cash Offers
It is important to understand what exactly a cash offer constitutes. Essentially, a cash offer simply means there is no financing contingency. In many cases, a cash offer is not in fact made with liquid funds. In many cases, there will be some type of financing involved. Simply stated, the purchase is not subject to a buyer being able to obtain financing but with this kind of purchase, if something goes wrong before closing, the buyer does not have an exit strategy in the contract for not being able to obtain funds. Keeping this in mind, there are a few ways to compete with LBI real estate cash offers:
- A buyer can simply waive their right to financing protection in a contract. This is highly risky, because if something goes wrong during the underwriting process with a bank, the buyer could potentially be at risk for losing his or her deposit.
- A buyer can obtain funds through a cash-out refinance of their primary home or another piece of real estate that has significant equity. In these scenarios, a buyer is still seeking a mortgage, it is simply not on the property he or she is attempting to buy. In many cases, these loans will have lower interest rates, and more favorable terms so they can be worthwhile to consider.
There are some new financing loan options which essentially approve a buyer for the underwriting process before the subject property has been identified. These loans allow an offer to be made without a financing contingency, however there is a much lower level of risk if the buyer has essentially been approved for the loan. These types of loans are relatively new to the market and have had a great effect when competing in the LBI real estate market.
Buying Long Beach Island New Jersey Real Estate
There are many opportunities presenting themselves in the LBI real estate market. Unfortunately, the best values attract multiple buyers and often end up in a bidding war. There are many ways to gain an advantage when buying Long Beach Island real estate and dealing with LBI real estate cash offers. Every situation is different, and is simply a matter of finding what is most important to the seller and answering that need. For some, it will be a quick closing. For others, it is a secured deal with the least amount of contingency as possible. It is this latter scenario where LBI real estate cash offers are most well received, and when dealing with the market, it is to a buyer’s advantage to find the best way to strengthen their position. Above all else, it is important to understand the financing options, and speak with a lender. It is also highly advisable that you speak with your accountant or financial adviser to see what is the best option for you. For more information about the Long Beach Island real estate market, contact and I will be happy to answer any questions you have.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
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