{"id":557,"date":"2021-06-11T10:48:08","date_gmt":"2021-06-11T14:48:08","guid":{"rendered":"https:\/\/www.bavagnolilaw.com\/?p=557"},"modified":"2021-07-30T11:18:52","modified_gmt":"2021-07-30T15:18:52","slug":"tips-tricks-from-a-real-estate-attorney","status":"publish","type":"post","link":"https:\/\/www.bavagnolilaw.com\/tips-tricks-from-a-real-estate-attorney\/","title":{"rendered":"Tips & Tricks from a Real Estate Attorney"},"content":{"rendered":"

Your real estate attorney in New Jersey does much more than merely review the real estate contract to ensure it is fair and reasonable.\u00a0 Real estate attorneys are vitally important pieces of the increasingly complex real estate puzzle and you will rest easy knowing a talented, hardworking legal practitioner is fiercely advocating for your interest all the way through the closing.\u00a0 Here\u2019s a quick look at a few tips from our New Jersey real estate law firm that will help you <\/span>land your dream home<\/span><\/a> at a fair price without a lengthy wait.<\/span><\/p>\n

Use an Escalator Clause<\/strong><\/p>\n

Escalator clauses were not used that frequently in decades past though they have become quite the important strategic tools for winning real estate bidding wars in 2021.\u00a0 The housing market in New Jersey and the rest of the country has never been hotter.\u00a0 Even if you were to submit an all cash bid 10% to 20% higher than the ask price, there is no guarantee it would be accepted.\u00a0\u00a0<\/span><\/p>\n

Thankfully, <\/span>escalator clauses<\/span><\/a> are available to ensure your dream home does not slip out of your grasp.\u00a0 Add an escalator clause to your NJ real estate offer and you will have the right to match other higher offers up to a ceiling referred to as the \u201ccap.\u201d<\/span><\/p>\n

As an example, if you were to submit an offer with an escalator clause capped at $250,000 for a home listed at $235,000 and someone else bids $247,000, your offer would move up to an increment (typically $1,000) greater than $247,000.\u00a0 An extra thousand dollars would be tacked on to this next highest offer, resulting in you <\/span>purchasing the home<\/span><\/a> for $248,000.\u00a0 However, if there is a competing bid above the cap figure of your escalator clause, your clause would not be triggered and you would lose out on the home.<\/span><\/p>\n

Obtain Legal Assistance Right Away<\/strong><\/p>\n

You will need the <\/span>assistance of a NJ real estate attorney<\/span><\/a> as soon as you start home shopping.\u00a0 Your attorney will help craft the language of your real estate contract.\u00a0 If your home fails or passes inspection, your attorney will take the necessary ensuing action to either cancel the contract or move it forward to the next step of the process.\u00a0 If you were to delay hiring an attorney, your home buying process would also be delayed, possibly causing the seller to move on to offers submitted by potential buyers who are more adequately prepared.<\/span><\/p>\n

Determine how Much Home You can Really Afford<\/strong><\/p>\n

Buying a three-story McMansion in the suburbs of New Jersey might not be financially prudent.\u00a0 You and your family might be better served with a ranch home far away from the city center.\u00a0 Keep in mind, you will have closing costs, taxes, attorney costs, home inspection costs, repairs and additional expenses after buying a home.\u00a0 Spend some time creating a realistic budget and stick to that budget throughout the home buying process to ensure you are not house rich and cash poor on move-in day.\u00a0\u00a0<\/span><\/p>\n

If you crunch the numbers and determine your down payment will be less than 20% of the sale price, you will end up paying private mortgage insurance (PMI) in addition to your mortgage interest rate.\u00a0 This means buying the house will prove even more expensive than initially anticipated.\u00a0\u00a0<\/span><\/p>\n

Meet With a Lender Before <\/i>Home Shopping<\/strong><\/p>\n

Plenty of real estate agents refuse to show a home unless the prospective buyer shows proof of mortgage pre-qualification or pre-approval from a lending institution.\u00a0 If you cannot qualify for a mortgage, you should not invest your time looking at homes on the market.\u00a0 Obtain proof of financial backing from a mortgage lender and you will be taken seriously by NJ real estate agents as well as local home sellers.<\/span><\/p>\n

Bid in Context<\/strong><\/p>\n

Context and timing are more important than most assume, especially when it comes to buying a New Jersey house.\u00a0 The market is blazing hot now thanks to low mortgage interest rates, the massive millennial age cohort reaching their 30s and the record shortage of available homes for sale.\u00a0 Add in the soaring price of lumber and buying a new home becomes even more challenging.\u00a0 This means bidding the ask price for a local NJ home probably won\u2019t get the job done.\u00a0 Even if the home fails inspection, needs repairs and is more than a century old, it will probably sell above the ask price.\u00a0\u00a0<\/span><\/p>\n

Tack on another 10% to 25% above the ask price and you might emerge as the winner.\u00a0 If possible, make an all cash offer to sweeten the deal that much more for the seller.\u00a0 Sellers prefer all cash offers as they expedite the closing timeline and are that much less likely to fall through in the days and weeks ahead.<\/span><\/p>\n

Do Your Part to Expedite the Closing Process<\/strong><\/p>\n

It might take your lender upwards of a month and a half to provide the green light for the closing.\u00a0 In the meantime, your lender will likely request an abundance of documentation ranging from bank statements to tax returns, proof of income, credit reports and more.\u00a0 Instead of scrambling to organize and present this paperwork to the lender after it is requested, be proactive by providing it at the start of the process.\u00a0 This way, if your lender drags its feet and ends up waiting until the final week or days to give you the all clear to close, you will know you have done everything in your power to expedite the process.<\/span><\/p>\n

\"buy<\/p>\n

Contact Bavagnoli & Bavagnoli Today<\/strong><\/p>\n

The <\/span>assistance of our real estate attorney<\/span><\/a> in New Jersey has the potential to save you thousands or even tens of thousands of dollars.\u00a0 Contact us today to find out more about how we can help you buy or sell a home in New Jersey.\u00a0 You can reach Bavagnoli & Bavagnoli by phone at (973) 785-9522.\u00a0 You can also contact us online by completing our <\/span>contact form<\/span><\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Your real estate attorney in New Jersey does much more than merely review the real estate contract to ensure it is fair and reasonable.\u00a0 Real estate attorneys are vitally important pieces of the increasingly complex real estate puzzle and you will rest easy knowing a talented, hardworking legal practitioner is […]<\/p>\n","protected":false},"author":2,"featured_media":563,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[139,141,159,160,144,135],"class_list":["post-557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-attorney-blog","tag-buying-a-home","tag-car-accident-in-new-jersey","tag-escalator-clause","tag-new-jersey-homes","tag-new-jersey-real-estate","tag-real-estate-attorney"],"acf":[],"yoast_head":"\nTips & Tricks from a Real Estate Attorney - Bavagnoli & Bavagnoli<\/title>\n<meta name=\"description\" content=\"Here\u2019s a quick look at a few tips from our real estate attorney that will help you land your dream home at a fair price without the wait.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bavagnolilaw.com\/tips-tricks-from-a-real-estate-attorney\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tips & Tricks from a Real Estate Attorney - 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