Hiring an agent is a separate issue. Purchasing a property can be full of potential land mines for people who do not do it everyday-- and most people don't. I would not recommend going it alone without the aid of someone who knows the local market and the process. Anyway, the seller pays the commission in the transaction so using an agent can only benefit you without adding cost to your purchase.
I'd be happy to give you some inside info on Maplewood and S. Orange. Contact me at your convenience.
Allison Ziefert, Realtor
Most people do not have the cash to buy a house, they also feel that since the interest rates are so low that they would rather hold onto their cash.
The prices are no longer going down in this area, they are actually moving up. The houses are selling quickly and selling well.
If you are in a position to buy now it is a very good time.
Using an agent really does not having anything to do with whether or not you pay cash or finance. Agents can negotiate a good price on the houses and also can help you with neighborhoods, inspections and many other things that you need to know to purchase a house.
Please let me know if I can be of help to you with purchasing.
As far as working with an agent goes, how you'll pay for the house has no bearing on the value of working with an agent. A good agent will help you negotiate the very best price the market will bear and stay with you from search through close.
Good luck to you!
Unwavering Commitment to Service, Unsurpassed Results
Cash is definitely an advantage. The seller will not have to worry about you getting approved for a mortgage. You also will be able to close quicker which could be important to the seller. Could get you a better price. There is also great peace of mind that you can live comfortable in your home and not have to worry about making the mortgage payment for the next 15-30 years. Congratulations to you for having saved a sizeable amount to be able to consider this! A very good financial position to be in.
Explore your options. Do some home work is you are doing with this questions to us. I would suggest you speak to a mortgage lender and learn about the loans and rates available to you. Also speak to the tax accountant that does your taxes and see what his opinion is regarding tax write offs for owning a house and how you might save.
Yes you definitely need to work with a real estate agent. We work with this everyday. The Maplewood and South Orange are definitely heating up with houses selling quickly and with multiple offers. Home buying may look simple, but it is not. There are so many steps to take to get to the end result. A good agent with guide you every step of the way with integrity and knowledge.
If you would like to email me at email@example.com with your email address, I would like to send you some literature to read about the home buying process that I know you will find helpful.
Cash is definitely King in this market however you should consider the benefits of financing versus paying cash for your home. Depending on the amount of cash you have, you could also consider purchasing investment property that could be a source of income. Its definitely worth checking out the benefits to a cash purchase or finance with your tax preparer before you make a choice.
As far as working with an agent, whether you purchase with cash or financing, a Realtor will save you valuable time in finding a home along with many benefits.
You should note that the cost of using an agent is paid by the seller.
What I love about your question is your plan to live in your new home at least 10-15 years! As a financial professional, I have expertise in investments, insurance, retirement and real estate. Real Estate has always been an ideal long-term investment and homeownership has traditionally been the largest and most secure asset in the family investment portfolio. Home equity offers great tax advantages and the costs to finance a home today are at historic lows that homebuyers in the 80's & 90's could only dream of. In fact there are many today who can only dream of getting approved for these great home loans. With this in mind, my advice (assuming you have a retirement plan and 12 months savings for emergencies) is to to avail yourself of the cheap financing and buy MORE home so that your condition and location are PRIME. In the long term, which is happily where your goals appear to be, buying a great home in a prime location will pay off more than just about any other strategy I can think of. This is where using a professional realtor can really make all the difference. Choose a realtor who listens to your needs and only shows you properties that are going to help you achieve your financial future.
Otherwise, using cash, when interest rates are as low as they are, hold no advantage to you and actually will inhibit you from other investments you could possibly make during this time period.
Secondly, in the general area of Maplewood and South Orange, i can tell you home prices are actually on the upswing and in fact multiple bids are occurring in 35-41% of the homes sales this year-to-date.
Lastly, hiring a good agent, doesnt coast you as a buyer a penny as the commission you agent will earn is paid for exclusively by the seller in NJ. More importantly, there is a lot more to buying a home than simply finding one online and negotitating the sale price. Frankly, I am under the impression that 75-85% of my earned commission gets earned after the accepted offer phase and up through the closing signing stage.
If you have any questions, please feel free to call me without any obligations or check out my website at http://www.goodhomesforgoodpeople.com