As an investor, you are always looking for a great deal, but how can you tell? Here are 5 signs
of a great deal when buying New Jersey real estate.
No Zoning Issues or Liens
It is important that you research a potential investment for any zoning issues or liens on the property. If the property you are interested
in doesn’t have the right zoning, you may not be able to use the property for your original plans. It is also very important that your intended property does not have any liens on it, for if you did purchase it, they would then become your responsibility to
pay, and that would cut into your return on investment.
No Expensive Repairs
If a property you are interested in does not have any serious structural issues, then it is probably worth submitting an offer, even
more so if the price is right! Even if the property has a slightly outdated kitchen, you don’t have to replace it if it’s still functional or not destroyed. You don’t have to follow the TV hype of remodeling every kitchen and bathroom of every investment property
you purchase. It is ok to remodel them as your budget allows, even if it takes years. You have to make sure the property is profitable first before investing any more money than absolutely necessary.
Priced Near Assessed Value
If a property is priced at or below the county assessed value, you can be sure it is a great deal! Market value is usually between 10-25%
above the county assessed value. You need to be careful, because if a property is priced that far below market value, it may have some damage or some other reason why it is priced so low. You may be lucky and have a seller that is extremely motivated with
a great property. On the other hand, you may have just found a bank-owned property and it might have some damage.
Passes 1% Rule of Thumb
There is a general rule of thumb that real estate investors use when determining if the price of a property is a good deal. They say
that the property should rent for about 1% of the purchase price. For instance, if a property should rent for about $1,400 then the ideal purchase price would be about $140,000 for it to turn a profit. In order to use this rule, you will have to analyze the
fair market rental potential of the property.
If the property already has fairly decent curb appeal, then that is just icing on the cake! That is hundreds or possibly thousands of
dollars saved from potential renovation costs. You will also want to take a look at the overall silhouette of the home and make sure it looks square and healthy. Another important factor of curb appeal is a straight roofline. Sometimes when additions are made
or the property withstood damage, the roofline may slope slightly, or might not match the overall composition of the house. Another thing to watch out for is different siding treatments on the home. This may also indicate an addition that lends itself to having
If you are a real estate investor looking for a great deal when buying New Jersey real estate, then call The Cardwell Thaxton Group today
at 908-456-1593. We will handle all of the legwork to look for your ideal investment property, simply provide the features you are looking for and we will provide you with some options.
Please call us or send us a message to discuss these five signs
of a great deal when buying New Jersey real estate.
We research the details of your home and start crafting a great offer for you.
We present you with a fair cash offer with no obligation and no fees.
Get the cash you need now. You do NOT have to wait 6 – 12 months to get your house sold.
Selling your house in New Jersey? There’s no guarantee, nor any way to estimate when your home will sell. We’ll review what you can
do if your buyer falls through. It’s a big let-down when you believe you’ve sold your home and moved forward with plans for your new home. While it doesn’t happen often, it’s wise to be aware as you enter the real estate market, of the many reasons a buyer
falls through and what, if anything you can do to avoid it.
It’s especially disheartening to learn that a buyer backed out because of buyer’s remorse. Sadly, there’s nothing you can do to save
the deal for this reason. If you’re selling your house in New Jersey due to an urgent reason for relocating, the stress of the sale going down the drain can be overwhelming. It’s also time-consuming and expensive when you’re suddenly forced to make last-minute
arrangements due to your buyer’s vanishing act. At the same time, if you want to maintain the arrangements you’ve made for moving, you’ll need to act swiftly if your buyer
While there may be serious buyers who haven’t been pre-approved for a mortgage loan, sorting them out can be time-consuming, intensely
trying to one’s patience, and quite costly. One thing you can do to avoid the issue of qualifying for the mortgage, as a reason for failure on the buyer’s part, is to only work with pre-approved buyers to increase your chances of a successful deal. This means
the lender is ready to work with them, having verified their credit and ability to afford the down payment and all of the costs associated with the transaction. While this will limit the number of buyers who pass through your door when you are selling your
house in New Jersey, it is in your best interest.
It’s advisable to have an independent inspection done by a professional when you’ve decided it’s time to sell your New Jersey house.
In any event, when you’ve found a buyer using conventional financing, you can be certain there will be an inspection. Depending on the age and condition of your home, failing the inspection is a deal-breaker. Be aware whether you hire professionals or are
capable of doing the work yourself, you’ll need to invest even more in the property in time, money and all of the headache’s repairs bring.
You’ll need to consider investing in updating the home or repairing out of date or in-operational major home systems and structural
issues, in order to be in the competition. Should the house you’re selling in New Jersey fail to appraise for enough to meet the desired loan to value (LTV) ratio of the lender, the loan will be denied. By having the home appraised by a professional beforehand,
you’ll have a more realistic picture of what you’ll be able to sell for.
Wary of the maddening roller-coaster that selling your house in New Jersey can become, losing time waiting for a closing that never
happens, while all the while pouring more money into maintaining your property? If you are finding yourself facing time restrictions, don’t want to invest even more into your property, or you want to simplify the process of selling your New Jersey house, one
thing you can do is to consider a direct sale as your exit strategy.
Wanting to avoid such an awful experience and all of the emotional turmoil that’s attached is understandable. Want to know the best
way to avoid your sale falling through? Sell directly to The Cardwell Thaxton Group. Send us a message if you have any questions or call 908-456-1593 today!
By anticipating potential issues that could cause your deal to disintegrate. We’ll go over 5 of the reasons home
sales fall through in New Jersey and what you can do about it.
Traditional financing has specific qualifiers in order for borrowers to qualify for the mortgage loan. Any change in these factors can
be a reason your home sale falls through in New Jersey. Your buyer could have unexpected life changes or a change in their credit score or debt ratio since being pre-qualified. One thing you can do about it is to only work with pre-approved or cash only buyers.
Remember when working with cash only buyers they’ll be expecting to pay less for your home due to the advantages that closing a deal in cash brings.
Get your own title report, this is legal proof that you are the rightful owner of the home with clear title. Having it on hand can avoid
delays and allow a buyer to feel secure in the transaction they’re entering into with you. Failing a professional inspection is another reason your home sale could fall through in New Jersey. By being prepared in advance, you can have any serious repairs done.
If you don’t want to make any more investment into the property, you can be upfront with your buyers, in order to avoid any surprises that scare the buyer away, wasting precious time on the market. To avoid being insulted, be of a mind that buyers will request
a credit off of the purchase price for each issue, so you will want to be ready beforehand with knowledge of the costs of each repair.
Appraisals can be one of the reasons home sales falls through in New Jersey. Depending on the type of loan being used, there are different
types of appraisers, you’ll want to keep this in mind. With VA loans, there will be a VA certified appraiser. If the loan is through the FHA program, the appraiser will be FHA certified, this appraisal will be valid for your home for a period of 6 months.
And finally, conventional loans will use a conventional appraiser. Buyers rarely pay more than the appraisal, though you do have the right to dispute the appraised value. The bottom line is that no lender is going to loan more than the ratio guidelines in
their policy on your home if your appraisal comes in lower than the sales price.
Buyers in New Jersey can sometimes get cold feet and back out of a deal making home
sales fall through. While you may try to entice them with incentives to move on, they walk away despite your best attempts to bring them back to the table.
Confidence and enthusiasm are evident when you meet your potential buyers. If they aren’t exuding these qualities, trust your gut instinct, and move on to a buyer giving off a secure disposition.
You’ll want to avoid relying on the sale of your buyer’s current property to enable the purchase of yours. This reason for your home
sale to fall through in New Jersey can be avoided. What you can do about it is to limit your dealings to buyers who have already sold their home, or in some other ways have proven to you that they are ready now for serious negotiations. It’s also wise to
remove anything that’s not available as a deal sweetener, to avoid a buyer becoming attached.
Wouldn’t it be great to just forget about all the other possibilities of your long-awaited deal falling through? Just send our team
a message or call 908-456-1593 today and sell your house directly to The Cardwell Thaxton Group!