Cash Offers in the LBI Real Estate Market
- High Tides Digital Marketing
- Oct 18, 2019
- 2 min read
Making a Cash Offer in the Long Beach Island NJ Real Estate Market
Buying Long Beach Island Real Estate
The LBI real estate market is a competitive market. With a stronger economy over the last few years we have seen more and more cash offers being made. This change has helped to increase property values throughout the LBI real estate market. This is especially true of vacant land or tear down properties with the intention to build a new home. In many transactions, but especially in the tear down market, we will 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 to remain competitive.
Cash Offers in the LBI Real Estate Market
It is important to understand what exactly a cash offer is. A cash offer simply means there is no financing contingency. Surprisingly, many "cash offer" still involve some kind of loan. This loan could be on the property being purchased or on another home. The deal is just not contingent on the mortgage. If the loan is not approved, typically there is no protection in place for the buyer (although this is best discussed with an attorney):
To remain competitive a buyer can simply waive their financing contingency but they have to understand the risks with this
A buyer can seek a home equity loan or another type of asset loan to obtain liquid funds and make a cash offer
Additionally a buyer can go through the loan process as far as they may BEFORE finding a home which may enable them to waive the loan contingency.
Buying in the Long Beach Island Real Estate Market
There are some great buying opportunities in the LBI real estate market but these opportunities often draw the most attention. It is important to make your offer as competitive as possible as this may save you money while also winning the home! 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. If you have any questions about buying, selling or investing in the LBI real estate market please do not hesitate to contact me.
By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
