5 Ways Home Sellers Can Compete With NJ Real Estate Foreclosures

How the uncertainty of foreclosures could be beneficial to savvy NJ real estate sellers

 

One of the few upsides to the record number of foreclosures is that homeowners who are seeking an edge when they sell their homes have the advantage of a strong buyer’s market. The reason for this is that foreclosures seem risky again, and are virtually unattainable due to the new and ever-growing loan restrictions being put in place. Knowledgeable sellers, or those with equity who are up-to-date on their loan payments, could now turn the tables and use the current infamy of foreclosures to their advantage, NJ real estate experts say. The controversy known as “robo-signing” has led to a slowdown in the sale of foreclosures. Although this respite is likely temporary, and sellers' advantage from a decrease in foreclosures is potentially short-lived, now is the best time for those wishing to sell to put their homes on the market. Read on to learn tips for sellers who want to take advantage of the uncommon lull in the foreclosure crisis.

Sell Now

If you have to sell in this market, the best time to do so would be now. The current slowdown in foreclosure activity could mean less competition now, temporarily. Keep in mind also that NJ real estate experts predict the number of foreclosures to skyrocket in the coming months.

Price Your Home Aggressively

The goal is to sell your home, perhaps with a modest profit. Walking away from the sale of your home with significant proceeds is a thing of the past. Few homeowners who are current on their mortgage can compete with a foreclosure price. However, buyers are still seeking low prices in this market. The best advice is to research the sale prices of other nondistressed properties in your neighborhood and list your NJ real estate home below that, but remember to be firm on the price you will ultimately accept.

Highlight Your Financial Responsibility

In the past, foreclosure sales were rarely seen in the real estate market. However, in some markets, they now account for up to 20% of housing sales. If you are a long-term homeowner who has never been late or defaulted on your NJ real estate mortgage payments, you must convey this to potential buyers. This is your main advantage over a lower-priced foreclosure, as buyers will know that they are purchasing the home with no underlying issues.

Do Your Research

Savvy buyers will come in with multiple comparables, many being rock-bottom foreclosures. Provide your own market analysis, as this can help highlight the difficulties that buyers of foreclosed properties face. According to NJ real estate experts, the first report should be of comparable homes sold in the past few months, with foreclosures shown separately. The second should detail current homes listed on the market. This will assist you in demonstrating to potential buyers that they should consider your home over a foreclosed home on the market.

Disprove Foreclosure Myths

Many buyers do not know the first thing about what it takes to purchase a foreclosed home. In many cases, individual buyers do not stand a chance because they compete with investors who are cash buyers, according to NJ real estate agents. There is a significant percentage of buyers who could not buy a foreclosure even if they wanted to.

 

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.