Read to the end to find out everything you need to know about the process of buying a house in New Jersey and about our Quick N Easy Offers.
When you buy a house directly with cash in New Jersey you will find that there are a great number of benefits, for instance:
- the transaction process speeds up no end;
- you are given far greater bargaining and buying power;
- equity becomes instantly available.
If you’re gonna do it, do it right
A word of warning
Be careful, however, because one false step along the process of buying with cash could lead to a disaster.
Step by step
It’s all part of the process
The process involves certain steps that protect the buyer and facilitate the transaction so that it is as Quick and Easy as possible. These steps can be divided into two separate categories to simplify the matter:
I) the important preliminary steps;
II) the steps of the actual transaction.
I) The important preliminary steps
Baby steps
The preliminary process of buying a property with cash
1. Prepare the purchase and sale agreement
What is that?
It is a document that states the terms of the purchase/sale, such as:
- the date of the agreement and expiration date,
- the purchase price,
- the property description,
- details regarding who will pay closing costs,
- the type and manner of conveyance of the title.
Even though real estate agents often use a long and complicated agreement that isn’t the only way to do it. Instead, you can use a concise single page document template that will do the job just as well. A word to the wise, just make sure that you have this agreement with you from as early on in the process as possible.
2. Carry out a title search
One small step for man, one giant leap for your house-buying process
This is an extremely important step that you can either:
- hire a title company to deal with or
- you can take care of it yourself, as long you know your onions and have at least some experience in this department.
In any case, the aim is to make sure that the title is crystal clear. You have to simply make sure beforehand that there are no liens against the house (this means that there is no one out there with a right to keep possession of property) so the seller is the only one with a legal claim to the house.
3. Deeds not words
What is a deed?
It is an official document that:
- transfers ownership;
- legally states the property owner.
What kind of deed will you get?
There are quite a few different kinds of deeds:
- quitclaim;
- warranty;
- special warranty.
For most people, a warranty deed will more than suffice.
A quitclaim deed is usually the fastest option available but, on the downside, there are no guarantees about the clarity of the title; the owner is merely renouncing their ownership (that is to say, giving up their claim to the house).
A warranty deed, on the other hand, implies a promise from the seller that the title is free and clear of all doubt.
Speed or surety
So the decision just depends on what your priority is, whether you value speed over a title guarantee.
II) The steps of the actual transaction
1. Make an offer they can’t refuse
The time comes when you have to make an offer. Knowing that you have cash in hand instantly demonstrates that you are perceived as a serious buyer, which will give you much more power when entering into the negotiation process so make the most of that advantage. The deal won’t be dependent upon any third-party loans so the offer you make will be viewed with the utmost certainty.
2. Carry out an inspection or appraisal
When the offer is made and accepted the next step is usually to conduct:
- an appraisal (something that most cash buyers make a condition of the sale); and
- an inspection.
In cash deals, an appraisal will put your mind at rest because you’re aware that you’re not paying more than the house’s worth.
An inspection will tell you about the state of the house, for instance, if any repairs will be required. If this is the case then you should consider renegotiating the deal.
3. Closing the deal
So with the appraisal done, the inspection over, and all parties find themselves in agreement, the moment of truth has arrived; that’s right, it’s time to put pen to paper and sign on the dotted line.
As a cash buyer, you’ll have much more flexibility than you ever would if a lender formed part of the process. You can choose a closing date that is convenient for you, which can be much sooner than it would be if you had to deal with an agent and lenders. All that remains now is to present yourself to a notary with a cashier’s check at hand and a pen at the ready.
So there you have it, the straight dope about the house selling process in New Jersey. If you would like to know more about our Quick N Easy Offers then feel free to contact us anytime.
