Hearth Blog

While you are out grabbing a bite to eat or shopping on Bloomfield Avenue, enjoy the artwork of VHS students displayed in the windows of local businesses. at 460 Bloomfield Ave in Verona – The Hearth Realty Group Offices – has a photography exhibit. Make sure you stop by all of the participating businesses!

We love supporting local athletic programs like the @veronabaseballsoftballleague
We had a great time with the team last night watching the #verona #cedargrove rivalry game at @jackalsbaseball stadium! #hearthrealtygroup #livelocalselllocal #supportlocal

Part real estate brokerage, part tech startup, Hearth Realty Group is an industry leader in technology innovation. Super-serving our clients by developing custom applications and partnering with emerging technology platforms. As an indie brokerage we have the freedom and flexibility to quickly adapt to a constantly changing technology landscape.

We strive to have a meaningful impact on the communities we serve through volunteer work and financial contributions to local charities such as:

South Orange River Day · South Mountain School Casino Night · Columbia High School Senior Night · Maplewoodstock · Verona Junior Women’s League · Achieve Foundation · Verona Fair in the Square · Verona summer concert series · South Orange Play Day · SOPAC Gala Verona High School Marching band · Brookdale Fall Festival · American Foundation for Suicide Prevention · Team Zoey Turkey Trot · Verona PBA · Backpacks for Life

There is a big difference between a buyer paying cash for your home and a “sell your home for cash” offer, letter or phone call many local homeowners receive. The business of wholesaling real estate has picked up in recent years and many potential sellers should be aware of exactly what they are getting into. 

Cash offers presented by an agent on a publicly listed property are usually submitted with proof of funds. If a cash offer you receive is not submitted with a bank statement or letter from a bank branch manager or attorney confirming the availability of funds, you should ask for this documentation before accepting the offer. Approximately 10% of the homes sold in Maplewood and South Orange in the last 6 months were cash transactions. Cash offers can sometimes come with limited inspection and appraisal terms and because no bank is involved, they tend to close quickly. 

Investors or house flippers will often use private financing which provides access to capital for short periods of time (unlike a mortgage with a longer term.) Some agents mistakenly confuse “private financing” also called “hard money” with cash. Many of these private lenders have appraisals or inspections involved in their approval process and although they might be able to close quickly, they should not be confused with a true cash offer. An offer with Private Financing might be a great deal for the seller but they should understand exactly how the purchase is being financed and what contingencies the private lender may enforce.

The other cash offer related issue that sellers should be aware of is a letter or phone call from an individual or company offering to purchase their home for cash. They promise a quick closing and favorable terms but usually offer much less than the home is worth. Some of these companies actually have no intention of purchasing your house. They will use what is known as an assignable contract. An assignable contract can be assigned to another party. This is the process known as wholesaling. A buyer will offer you a contract, usually with little or no money down, and then try to sell the contract for a profit to another investor pocketing the difference between the original contract price and the price the other investor is willing to pay. If the wholesaler is unable to sell the contract to another investor they will usually just walk away from the deal. With little or no money down, wholesalers usually have little to lose but a seller can lose valuable time and money. 

Fortunately NJ standard real estate contracts are non-assignable and a seller should always seek legal advice for assistance with the sale of their home. 

Josh Jacobs is the Broker of Record and Founder of Hearth Realty Group. A former Columbia High School graduate and entertainment industry executive, Josh now oversees the leading boutique real estate brokerage in South Orange and Maplewood. Have real estate questions? Call 973-913-5055 today!