6 Tips for Finding the Best NJ Real Estate Housing Deals
How to locate the best bargains to be had in NJ real estate
Buying NJ real estate in the current market is a tricky thing as financing and employment are generally unsettled. However, if you are in a fortunate situation in which you can purchase an investment and hold on to it for five years or more, you can stand to make a significant profit when you decide to sell. The question for anyone brave enough to buy real estate in the current economy is: Can you ever really be confident you are getting a good bargain? See below for more information and tips on doing so.
Pay Attention to Listings on the Market for 90+ Days
Smart NJ real estate buyers know that if a home does not within the first 3 months it is listed for sale; it becomes what is known as a stale listing. According to NJ Real Estate experts, more deeply discounted homes are 83% more likely to have been listed 90 days or more. However, these discounts do not increase after 90 days, so it is not crucial to wait longer for those who want to make a bid. The best thing to do in this situation is to contact a Team Chris Walsh agent and ask about being put on their auto email list which will automatically keep you updated daily of new, expired, and homes with reduced prices.
Submit a Low Bid On a Fixer-Upper
According to NJ real estate experts, home bargain sales were 73% more likely to have used "fixer-upper" or similar terms in listings and ads. Homeowners putting their homes up for sale prior to fixing them up are usually more concerned about an easy sale than the best price. A 2003 study done by the National Association of Realtors found that, on average, fixer-uppers sell for 24% less than other homes. These special homes are also increasingly common as sellers grow discouraged and foreclosures increase. However, agents warn that "fixer-upper" and similar terms can be misleading if properties are likely to need more work than the average homebuyer can handle, making them not a bargain, even if they do include significant price reductions.
Bid Aggressively on a Discounted Property
Many discounted homes have sustained not just one or two, but several price reductions. Heavily discounted homes are more likely to have had several price reductions in the past, at least two in fact. Once a seller lowers their asking price, he or she is sending a signal to buyers that they are open to selling the home for less in negotiations. According to top NJ real estate agents, the best chance of getting a deal is in negotiations with builders because they are most likely under pressure financially to sell many homes at one time. In addition, a builder may make expensive concessions by throwing in luxury amenities or reducing a buyer's mortgage terms or down payment.
Pass on Remodeled Properties
Many individuals assume that remodeled homes are overpriced, but this is not necessarily true in all cases. However, in general, remodelers are still able to command top dollar for homes, and properties with biggest discounts were found to be 20% less likely to have been remodeled. Even though sellers probably cannot recoup the entire expense of a remodel when they sell, they are still able to command a higher price. There is a fairly healthy demand for high-quality properties, with the exception of homes that have anything wrong with them, in which the price just falls through the floor. Many remodels could be a good value because many sellers have over improved a property in ways that will not yield a return in actual market-value dollars. But since remodeled homes were only 20% less likely to be bargains, the lesson is not to invest too much energy into trying to drive a bargain on one of them.
Look for Distressed Home Flippers
According to NJ real estate experts, there is only a small chance that homes purchased within 5 years would be discounted by more than 10% from the listing price when they are put up for sale. This could be because some investors are desperate to exit an unmanageable loan are willing to take a bit of a bath. In this situation, potential buyers should search local NJ real estate property tax records to find out the sales history of a particular home.
Expect the Banks to be Difficult to Negotiate With
Banks do not negotiate as liberally as one might think regarding the selling of foreclosed homes. This includes the prices on short sale homes.
The real estate market is changing rapidly and expanding into new avenues almost daily. Sometimes it can be very difficult to find the answers you need on a specific topic or issue. In times like these, you need a real estate professional who will provide valuable information and trustworthy advice. For more information on NJ real estate, call us today or click here to be connected with one of our top real estate specialists.
