Whether you are a first time buyer or a seasoned investor looking to purchase more properties, you can succeed in finding a home with the right strategy and mindset, even in this market. Below are a few tips to help you reach your goal of purchasing a home.
1. Understanding the asking price
Asking price, or list price, is the number a homeowner initially requests from anyone interested in buying the property. It’s generally based on the recent sale price of homes in the same neighborhood and reflects current market conditions. This figure rarely becomes the final selling price as it can be below, above, or around the home’s actual market value. This is due to the fact that some sellers may overestimate, agents may advise adjustments to stay competitive, and many other factors influence this number. Keep this in mind when making your offer.
2. The current buyer mindset
Today’s buyers and buyer agents treat the asking price as the minimum you should offer. We’ve been in a strong sellers’ market at least five years and prices have in-fact gone up as each month passes. According to Zillow, 67% of homes in Passaic County sell above their list price, at an average of 2% over. To succeed, adopt this competitive mindset as deals remain rare, especially on new listings.
3. Look for stale listings
I call listings that sit on the market for 21 days or more as “stale”. These homes are often overlooked because of either their location, condition or initial asking price. However, it always comes down to price. Considering the buyers mindset as discussed above, the assumption is that others will bid at or above the list price. If a potential purchaser thinks the price is too high, they will assume others in the market will put in an asking or above offer, so they won’t bother making an offer. Sellers of these listings are more likely to be open to negotiation. In Passaic County, nearly 1 in 4 homes sell below list price! This is your chance to buy a solid home, at a better value, without competition.
4. Know your must haves and nice to haves
Before you begin your search, identify no more than three (3) non-negotiable features you need in a home. Next, list up to five (5) additional features you would like to have but would not be a deal breaker. A home that meets all of your “must-haves” and most of your “nice-to-haves” is a strong match that you should absolutely go for it.
5. Make creative offers
In a competitive market, the highest price does not always win. Attractive terms like flexible closing dates can make your offer stand-out. A skilled buyer agent can help structure your offer to meet the seller’s needs and give you an edge over similar or higher bids.
6. Don’t avoid homes that need work
Consider homes that need cosmetic updates or have unfinished rooms. If the structure is sound, the layout works and the location is strong, cosmetic fixes such as; flooring, paint or removing walls are relatively simple compared to finding the right location or lot. If you have questions about renovation potential, consult your agent or a trusted contractor.
7. Be ready
Inventory in Northern NJ is low. If a home fits your criteria, see it immediately. Many homes receive offers within days of listing so keep a flexible schedule to view new listings promptly. This is one of the most important advantages you can have in this market.
8. Get preapproved
Know your financial situation before you start house hunting. A preapproval letter is required to make an offer and often needed to schedule appointments. Preparing for this early has other advantages. You can address issues like credit score improvement or explore special financing programs. Knowing your budget lets you act quickly and confidently when the right home comes along.
If you have questions about the buying process or want advice, reach out anytime. You might also subscribe to my weekly newsletter for up-to-date market analysis in Northern NJ and essential tips, news and insights.
Joseph D Charles Jr
NJ Real Estate Agent
Mobile: 973-715-8766 | Email: joecharlesnj@gmail.com
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