December 2015 Local Market Monmouth County

How To Be A Cash Buyer With No Money Of Your Own

Everybody knows that "cash is king" and that cash buyers have an edge in the real estate market.

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!

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.

 

 

 

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Copyright 2016 NATIONAL ASSOCIATION OF REALTORS®

07760 Residential Statistics for December 2015

07760 Residential Statistics for December 2015

 

The absorption rate for Rumson is still making it a buyer's market. It has dropped from 2014 by .5%. 

 

Summary Statistics
	Dec-15	Dec-14	% Chg	2015 YTD	2014 YTD	% Chg
Absorption Rate	7.49	8.1	-7.53	9.36	9.19	1.85
Average List Price	$1,963,830	$1,953,235	0.54	$1,560,252	$1,661,957	-6.12
Median List Price	$1,395,000	$1,212,500	15.05	$1,199,000	$1,125,000	6.58
Average Sale Price	$1,113,033	$1,037,462	7.28	$1,205,383	$1,111,179	8.48
Median Sale Price	$990,000	$775,000	27.74	$915,000	$950,000	-3.68
Average DOM	81	56	44.64	81	81	0.00
Median DOM	57	23	147.83	53	53	0.00

Sold Listings   This Month Year to Date   2015 2014 % Chg 2015 2014 % Chg 0-29,999 0 0 0.0 0 0 0.0 30,000-39,999 0 0 0.0 0 0 0.0 40,000-49,999 0 0 0.0 0 0 0.0 50,000-59,999 0 0 0.0 0 0 0.0 60,000-69,999 0 0 0.0 0 0 0.0 70,000-79,999 0 1 -100.0 0 1 -100.0 80,000-89,999 0 0 0.0 0 0 0.0 90,000-99,999 0 0 0.0 0 0 0.0 100,000-119,999 0 0 0.0 0 0 0.0 120,000-139,999 0 0 0.0 2 0 N/A 140,000-159,999 0 0 0.0 2 2 0.0 160,000-179,999 0 0 0.0 2 0 N/A 180,000-199,999 0 0 0.0 3 3 0.0 200,000-249,999 0 2 -100.0 4 6 -33.3 250,000-299,999 1 0 N/A 4 3 33.3 300,000-399,999 1 0 N/A 8 9 -11.1 400,000-499,999 1 0 N/A 14 9 55.6 500,000+ 12 10 20.0 128 120 6.7 Totals 15 13 15.4 167 153 9.2

Pending Listings   This Month Year to Date   2015 2014 % Chg 2015 2014 % Chg 0-29,999 0 0 0.0 0 0 0.0 30,000-39,999 0 0 0.0 0 0 0.0 40,000-49,999 0 0 0.0 0 0 0.0 50,000-59,999 0 0 0.0 0 0 0.0 60,000-69,999 0 0 0.0 0 0 0.0 70,000-79,999 0 0 0.0 0 0 0.0 80,000-89,999 0 0 0.0 0 1 -100.0 90,000-99,999 0 0 0.0 0 0 0.0 100,000-119,999 0 0 0.0 1 0 N/A 120,000-139,999 0 0 0.0 1 0 N/A 140,000-159,999 0 0 0.0 1 1 0.0 160,000-179,999 0 0 0.0 6 0 N/A 180,000-199,999 0 0 0.0 2 1 100.0 200,000-249,999 0 0 0.0 2 6 -66.7 250,000-299,999 0 1 -100.0 3 3 0.0 300,000-399,999 2 0 N/A 13 6 116.7 400,000-499,999 1 0 N/A 15 12 25.0 500,000+ 8 5 60.0 134 119 12.6 Totals 11 6 83.3 178 149 19.5

Active Listings   This Month Year to Date   2015 2014 % Chg 2015 2014 % Chg 0-29,999 0 0 0.0 4 0 N/A 30,000-39,999 0 0 0.0 0 0 0.0 40,000-49,999 0 0 0.0 0 0 0.0 50,000-59,999 0 0 0.0 0 0 0.0 60,000-69,999 0 0 0.0 0 0 0.0 70,000-79,999 0 0 0.0 0 0 0.0 80,000-89,999 0 0 0.0 0 1 -100.0 90,000-99,999 0 0 0.0 0 0 0.0 100,000-119,999 0 0 0.0 1 0 N/A 120,000-139,999 0 1 -100.0 2 1 100.0 140,000-159,999 1 1 0.0 3 2 50.0 160,000-179,999 0 0 0.0 6 1 500.0 180,000-199,999 0 0 0.0 2 3 -33.3 200,000-249,999 2 4 -50.0 12 13 -7.7 250,000-299,999 5 2 150.0 13 12 8.3 300,000-399,999 2 5 -60.0 20 17 17.6 400,000-499,999 2 4 -50.0 29 24 20.8 500,000+ 91 91 0.0 361 355 1.7 Totals 103 108 -4.6 453 429 5.6

New Listings   This Month Year to Date   2015 2014 % Chg 2015 2014 % Chg 0-29,999 0 0 0.0 4 0 N/A 30,000-39,999 0 0 0.0 0 0 0.0 40,000-49,999 0 0 0.0 0 0 0.0 50,000-59,999 0 0 0.0 0 0 0.0 60,000-69,999 0 0 0.0 0 0 0.0 70,000-79,999 0 0 0.0 0 0 0.0 80,000-89,999 0 0 0.0 0 1 -100.0 90,000-99,999 0 0 0.0 0 0 0.0 100,000-119,999 0 0 0.0 1 0 N/A 120,000-139,999 0 0 0.0 1 0 N/A 140,000-159,999 0 0 0.0 2 1 100.0 160,000-179,999 0 0 0.0 6 0 N/A 180,000-199,999 0 0 0.0 2 0 N/A 200,000-249,999 0 2 -100.0 8 10 -20.0 250,000-299,999 0 0 0.0 11 9 22.2 300,000-399,999 0 0 0.0 17 13 30.8 400,000-499,999 2 0 N/A 25 19 31.6 500,000+ 9 14 -35.7 280 280 0.0 Totals 11 16 -31.2 357 333 7.2

 

 

Information is deemed to be reliable, but is not guaranteed. © 2016 MLS and FBS. Prepared by Gloria Benaroch, Coldwell Banker 732.245.4031 on Tuesday, January 05, 2016 3:44 PM.

Italian Mardi Gras slated for Jan. 31

Italian Mardi Gras slated for Jan. 31

The Italian American Association of Monmouth County will host Carnevale, the Italian Mardi Gras festival, 2-6 p.m. Jan. 31 at Eagle Oaks Golf and Country Club, 20 Shore Oaks Drive, Farmingdale.

The cost is $40 for adults and $22 for children ages 3-10. The cost includes lunch, music, dancing, masks and activities, in addition to an auction table and 50/50. Costumes are optional.

For more information, call 732-863- 0021 or visit www.iaaofmc.com.