Buying a Home in Foreclosure

Buying a Home in Foreclosure

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Buying a Home in Foreclosure: A Guide for New Jersey Buyers

 

Are you considering buying a home in foreclosure in New Jersey? Foreclosures can be an attractive option for homebuyers and investors seeking below-market deals, but they come with unique challenges and risks. Understanding the foreclosure process and the market dynamics across New Jersey is key to making informed decisions.

What Is a Foreclosure?

A foreclosure occurs when a homeowner fails to make mortgage payments, leading the lender to repossess the property. These homes are often sold at a discount, making them appealing to buyers looking for affordability or investment potential. However, understanding the foreclosure process and the potential risks is crucial before diving in.

Why Consider Buying a Foreclosure?

  • Lower Prices: Foreclosures are typically priced below market value, offering significant savings.
  • Investment Opportunities: These properties are ideal for buyers interested in fixing and reselling (flipping) or renting them out.
  • Potential Equity: With the right improvements, foreclosures can gain substantial value over time.
  • Variety of Buyers: Foreclosures aren’t just for first-time homebuyers—they’re also attractive to seasoned investors, property developers, and those looking for multi-family rental opportunities.

Types of Foreclosure Sales

Understanding the different stages of foreclosure is essential for making informed decisions:

            Pre-Foreclosure:

    • The homeowner is in default but still owns the property.
    • You can negotiate directly with the owner to purchase the home before it goes to auction.

            Foreclosure Auction:

    • Properties are sold at public auctions to the highest bidder.
    • Buyers often need to pay in cash and have limited opportunities to inspect the property.

            Real Estate Owned (REO) Properties:

    • These homes did not sell at auction and are owned by the lender.
    • Buying REO properties typically involves fewer risks than auctions and includes a traditional buying process.

Steps to Buying a Foreclosure Property

 

  1. Determine Your Budget
    • Work with a lender to understand your financing options.
    • Consider additional costs, such as repairs, inspections, and closing fees.
  2. Partner with an Experienced Real Estate Agent
    • A knowledgeable agent can help you locate foreclosures, evaluate potential risks, and negotiate the best deal.
  3. Research the Property
    • Perform due diligence to uncover any liens, unpaid taxes, or other encumbrances.
    • Understand the property’s condition and market value to avoid overpaying.
  4. Inspect the Home
    • Whenever possible, schedule a professional inspection to identify structural or mechanical issues.
    • Be prepared for potential as-is sales, where repairs are your responsibility.
  5. Secure Financing
    • Many buyers use cash, but specialized loans like FHA 203(k) or Fannie Mae’s HomePath can cover purchase and renovation costs.
    • Work closely with your lender to determine the best option for your situation.
  6. Make an Offer
    • Your agent will guide you in crafting a competitive offer based on market conditions and the property’s history.
    • Be prepared for additional paperwork and lender requirements.
  7. Close the Deal
    • The closing process for foreclosures can be more complex, so patience is key.
    • Your real estate agent will assist with navigating any challenges and ensuring a smooth transaction.

Areas in New Jersey with Higher Foreclosure Rates

Certain regions in New Jersey tend to have a higher concentration of foreclosure properties. These include:

 

  • Essex County: Cities like Newark and East Orange often have foreclosures due to urban density and economic factors.
  • Passaic County: Areas such as Paterson and Passaic offer opportunities for both investors and homebuyers.
  • Camden County: Foreclosures are common in cities like Camden, Trenton, and Pennsauken, with potential for revitalization projects.
  • Atlantic County: Coastal towns, including Atlantic City, frequently have distressed properties due to fluctuations in the tourism-driven economy.
  • Union County: Elizabeth and Linden are notable for foreclosure opportunities, particularly for multi-family and investment properties.

Potential Risks of Buying a Foreclosure

While foreclosures can offer great deals, they also come with challenges:

  • Unknown Condition: Many foreclosures are sold as-is, meaning you inherit all repairs and issues.
  • Competition: Other buyers and investors may drive up prices in popular areas.
  • Extended Timelines: The foreclosure process can be lengthy, especially for REO properties.
  • Legal Complications: Outstanding liens or disputes can complicate the sale.

Tips for Investors and Flippers

For investors and property flippers, foreclosures offer unique opportunities to maximize profits. Here are some additional strategies:

  1. Look for Undervalued Properties: Focus on homes in areas with strong market demand and growth potential.
  2. Build a Renovation Team: Work with reliable contractors and designers to handle renovations efficiently.
  3. Know Your Numbers: Calculate your after-repair value (ARV) and ensure your investment aligns with profit goals.
  4. Understand Local Zoning Laws: Ensure the property’s intended use aligns with zoning regulations, especially for multi-family or commercial ventures.
  5. Leverage Tax Benefits: Consult with a tax professional to understand deductions available for investment properties.

 

Why Buying Foreclosure Homes Appeal to Rental Property Buyers

For those interested in building rental portfolios, foreclosures provide:

  • Affordable Entry Points: Lower purchase prices increase potential returns.
  • Customization Potential: Renovate the property to meet tenant preferences and charge competitive rents.
  • Scalability: Investors can acquire multiple properties within their budget, building a robust portfolio in areas with strong rental demand.
  • Scarcity: Obviously with the higher demand and therefore prices of homes and real estate there are fewer foreclosures now and the best way to source better deals is with off-market.

 

Ready to Explore Foreclosure Opportunities?

Contact us at United Real Estate and Sanchez Realty Group, led by Roberto A. Sanchez, a trusted and experienced real estate professional to guide you through the complexities of purchasing foreclosure properties, if you’re buying a Home in Foreclosure in New Jersey. Whether you’re a first-time buyer, seasoned investor, builder, or property flipper, having the right team on your side ensures a smooth and informed buying experience.

Small Income Property Analysis

Small Income Property Analysis

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Doing Small Income Property Analysis and educating income property buyers and small investors on how to do small-income property analysis on the potential income of small investment properties should be an important trait of a real estate professional.

We also assist home buyers and investors interested in purchasing multi-family properties to create passive income through rentals and create equity over time.

This Small Income Property Analysis information video could assist the beginner investor with the basics analysis to make a better-informed purchase.

There are several approaches and analysis methods investors utilize to make sure they’re making a sound decision.

These simple methods quickly tell you if the property meets your investment objectives whether they’re smaller investments; 2-4 units or larger properties.

I’m Roberto A. Sanchez with United RE and the Sanchez Realty Group, I’ll explain some of the most common methods used to analyze a property.

For the sake of this illustration we will use a 2-unit property with a purchase price of $300,000 and a rental income of $3,000 a Month.

 

 

These 4 Analysis Methods are Most Commonly Used:

 

 

1st  Net Operating Income:

Gross Rental Income – Operating Expenses

Ex:  $3,000 x 12 months (Income)  – $11,000 (Expenses) or  $36,000 – 11,000 or $27,000 NOI  (Net Operating Income – Before Mortgage)

 

2nd Cap Rate:

Net Operating  Income / Total Purchase Price

Ex:  $27,000 / $300,000 = 9% Cap Rate

 

3rd 1st One Percent Rule:

Monthly Gross Rent >= 1 % of Total Purchase Price

Ex:  $3,000 >= 1% of $300,000 = $3,000

 

4th Net Income After Mortgage (NIAM)

Net Operating Income – Mortgage or Finance Costs

$27,000 – $12,900 (Principal + Interest) = $14,100 (NOI)

 

 

4th Cash on Cash Return (CoCr or COC):

Net Income After Mortgage / Down Payment

Ex: $14,100 / $75000 = 18% COC

 

Other Methods are:

 

The Gross Rent Multiplier:

Total Purchase Price / Yearly Gross Rent

Ex:  $300,000 / $36,000 = 8.3

 

The 50% Rule:

It estimates the NOI at 50% of Gross rents

Ex: $36,000 yearly GR x 50% = $18,000.

 

 

Counties/Towns with Investment Properties

in Northern New Jersey

Bergen County Multifamily Properties

Morris County Multifamily Properties

Passaic County Multifamily Properties

Union county Multifamily Properties

Any Questions? Contact Us

Essex County Multifamily Properties

Sussex County Multifamily Properties

Clifton Housing Market Trends

Clifton Housing Market Trends

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Clifton Housing Market Trends: What Sellers Need to Know

Why Understanding The Clifton Housing Market Trends Matters

Are you wondering, “What’s happening in the Clifton housing market right now?” Knowing current trends is essential for anyone planning to sell a home in Clifton. These insights help you determine the best pricing strategy, timing, and marketing approach. Roberto A. Sanchez and the Sanchez Realty Group at United Real Estate are experts in Clifton real estate, have in-depth knowledge of the many neighborhoods and overall market as residents over 30 years, and offer invaluable guidance to home sellers.

What Defines a Seller’s Market in Clifton?

A seller’s market occurs when there are more buyers than available homes. Clifton, NJ, is currently experiencing this phenomenon, driven by:

  • Limited Inventory: The number of homes for sale in Clifton is relatively low, creating competition among buyers.
  • High Demand: Buyers are attracted to Clifton for its convenient location, excellent schools, and vibrant community.
  • Rising Home Prices: With high demand and low supply, home values in Clifton have steadily increased, giving sellers the upper hand.
  • Buyers’ Desirability: Buyers are offered diversity, convenience and affordability

Understanding these dynamics can help sellers set realistic expectations and prepare for a smooth transaction process.

Key Trends in the Clifton Real Estate Market

Trend #1: Rising Home Prices

Clifton has seen consistent home price appreciation over the past few years. For sellers, this trend means greater returns on investment. According to recent market reports, the average home price in Clifton has increased by X% compared to last year, reflecting strong buyer demand.

Rising prices not only benefit sellers but also indicate a healthy, stable market. However, pricing too high can still deter potential buyers. Consulting with an experienced real estate agent, like Roberto A. Sanchez, can help you strike the perfect balance.

Trend #2: Low Days on Market

Homes in Clifton are selling faster than ever. The average days on the market (DOM) have decreased, signaling a robust market where well-priced homes attract offers quickly. Sellers who price competitively can expect multiple offers within days of listing.

This fast pace means sellers need to be prepared. Before listing, ensure your home is market-ready with necessary repairs, decluttering, and staging. Quick sales require strategic planning, which is where the expertise of Sanchez Realty Group becomes invaluable, negotiation skills is a must in today’s market to help you achieve your highest price gains while enjoying a stress-free possible transaction.

Trend #3: Buyer Preferences Are Shifting

Today’s buyers are prioritizing:

  • Home Offices: With more people working remotely, functional office spaces are a top priority.
  • Outdoor Living: Features like decks, patios, and spacious yards are highly desirable.
  • Modern Kitchens and Bathrooms: Updated, move-in-ready homes often fetch higher prices.
  • Open Layout and Modern Decor: Preparing your home and introducing subtle and economical updates could bear the best return on investment (ROI).

If your Clifton home aligns with these trends, you’re in a strong position to attract motivated buyers. Even if your home doesn’t currently meet these criteria, small upgrades can significantly enhance its appeal.

Trend #4: Technology-Driven Home Searches

The rise of online platforms and virtual tours has transformed how buyers search for homes. Most buyers begin their search online, presenting high-quality photos, detailed and well-crafted listing descriptions, virtual walkthroughs, and matter-port, aerial videos, and neighborhood-specific informational videos are essential. Sellers in Clifton should leverage these tools to showcase their homes effectively. Partnering with a tech-savvy real estate team like Sanchez Realty Group ensures your home receives maximum online and offline exposure.

Trend #5: Local Market Stability

Clifton’s real estate market has remained stable despite national economic fluctuations. The town’s strong sense of community, excellent amenities, and proximity to major cities make it a desirable location. This stability reassures both buyers and sellers, fostering confidence in the market.

How to Leverage Market Trends to Your Advantage

Work with an Experienced Realtor

Partnering with an experienced Clifton real estate agent like Roberto A. Sanchez ensures you have access to the latest market data and professional insights. Sanchez Realty Group excels at positioning your home to maximize its value in today’s market.

An experienced agent can also guide you through negotiations, helping you secure the best possible price and terms. Their expertise is especially critical in a fast-moving market like Clifton’s, where timing and strategy can make all the difference.

Price Strategically

Setting the right price is crucial. Overpricing can deter buyers while underpricing leaves money on the table. With expert guidance from Sanchez Realty Group, you’ll receive a detailed comparative market analysis (CMA) to determine the optimal price for your home.

Strategic pricing involves understanding both local and national trends. For example, while Clifton may be experiencing a seller’s market, broader economic factors like interest rates and inflation can still impact buyer behavior. A knowledgeable real estate agent will help you navigate these complexities.

Timing Your Sale

While the Clifton market is currently favorable for sellers, timing your sale strategically can further enhance your results. Consider seasonal trends, buyer activity, and your personal goals when planning your sale. For example:

  • Spring and Summer: These are traditionally the busiest times for real estate, especially in the Northeast due to the warmer, longer days, with more buyers actively searching for homes.
  • Fall and Winter: Although less busy, these seasons can still be advantageous, especially for well-prepared sellers. Serious buyers who remain active during these months are often highly motivated and ready to transact which might be best since you have a lot less competition with less homes in the market.

Enhance Your Home’s Appeal

Even in a seller’s market, presentation matters. Invest in minor upgrades, such as fresh paint, updated fixtures, and landscaping, to make your home more appealing. Staging your home can also help buyers envision themselves living there, increasing the likelihood of a quick sale.

Why Choose Sanchez Realty Group?

Selling a home in Clifton requires a tailored approach, and that’s exactly what you’ll get with Roberto A. Sanchez. With deep local knowledge and a proven track record, intrinsically knowledgeable about the Clifton Housing Market Trends, Sanchez Realty Group ensures your home stands out in the competitive Clifton market. From expert staging advice to aggressive marketing strategies, they handle every detail to secure the best outcome, always looking after your best interest.

Sanchez Realty Group’s commitment to personalized service sets them apart. By taking the time to understand your goals and concerns, they create a customized selling strategy that meets your needs. Their extensive network and marketing expertise further enhance your home’s visibility, attracting qualified buyers and maximizing your return.

Conclusion

Understanding housing market trends is key to a successful home sale in Clifton, NJ. By staying informed and working with an expert real estate agent like Roberto A. Sanchez, you’ll be well-equipped to navigate the market and achieve your goals.

Selling a home is a significant milestone, and you don’t have to go through it alone. Contact Sanchez Realty Group today to schedule a consultation and take the first step toward a successful sale.

 

Capital Gains Taxes?

Capital Gains Taxes?

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Capital Gains Taxes?… How to Sell a Home Without Paying Capital Gains Tax: What Home Sellers Need to Know

If you’re planning to sell your home, you may be wondering how to avoid capital gains taxes. Understanding the rules and available exemptions can save you thousands of dollars and help you keep more profit in your pocket. While taxes can be complex, there are clear ways you can reduce or eliminate your capital gains liability when selling a home. In this blog, we’ll break it all down in plain language, focusing on what homeowners in Clifton, NJ, need to know.

Before we begin, a quick disclaimer: This blog is for informational purposes only and does not constitute tax, legal, or financial advice. Always consult a tax professional, CPA, or attorney for guidance specific to your situation.

What Are Capital Gains Taxes?

When you sell a home, the IRS considers the profit you make from the sale as a “capital gain.”  Capital gains taxes are simply the difference between the amount you paid for the home (your cost basis) and the amount you sold it for (your sale price).

For example:

  • If you bought your home for $200,000 and sold it for $400,000, your capital gain is $200,000.

Capital gains are taxable, but there are exceptions and exclusions specifically designed to help homeowners reduce or eliminate these taxes.

The Home Sale Exclusion Rule

The good news for homeowners is that the IRS offers a generous Home Sale Exclusion, also known as the Section 121 Exclusion. This rule allows you to exclude up to:

  • $250,000 of capital gains if you are a single filer.
  • $500,000 of capital gains if you are married and filing jointly.

For many homeowners, this means you may owe no taxes at all on the sale of your primary residence. However, you must meet certain criteria to qualify for this exclusion.

How to Qualify for the Home Sale Exclusion

To claim the exclusion, you must meet two key requirements:

  1. Ownership Test: You must have owned the home for at least two years during the five years leading up to the sale.
  2. Use Test: You must have used the home as your primary residence for at least two of the last five years.

If you meet both the ownership and use tests, you can take full advantage of the exclusion limits.

Example: Let’s say you bought your Clifton home for $300,000 and sold it for $600,000. If you are a married couple filing jointly, you can exclude up to $500,000 of the gain. That means you won’t owe any capital gains taxes because the $300,000 gain is fully excluded.

Partial Exclusion for Special Circumstances

If you don’t meet the full ownership and use tests, you may still qualify for a partial exclusion of capital gains. Special circumstances include:

  • A job relocation (moving more than 50 miles away).
  • Health-related reasons.
  • Unforeseen events, such as divorce or natural disasters.

Even if you’ve only lived in your home for a short time, it’s worth exploring whether you can claim a partial exclusion.

Example: You lived in your home for just 18 months before accepting a job relocation. While you don’t meet the two-year requirement, you may still qualify for a prorated exclusion based on the time you lived in the home.

How Improvements Impact Your Capital Gains

Did you know that home improvements can reduce your taxable gain? The IRS allows you to add the cost of qualifying capital improvements to your home’s cost basis. This effectively reduces the amount of your capital gain.

What Counts as a Capital Improvement?

Capital improvements include any upgrades that:

  • Increase the value of your home.
  • Extend the useful life of your home.
  • Adapt your home for new uses.

Some examples include:

  • Adding a new roof, deck, or swimming pool.
  • Installing a new HVAC system or windows.
  • Renovating the kitchen or bathrooms.
  • Adding a home office or converting an attic or basement into living space.

Example: You purchased your home for $250,000 and spent $50,000 upgrading the kitchen and adding a deck. When you sell the home for $400,000, your cost basis is now $300,000 ($250,000 purchase price + $50,000 improvements). This reduces your capital gain to $100,000 instead of $150,000.

Keep Records of Improvements

To take advantage of this rule, keep detailed records of all improvements, including receipts, invoices, and permits. This documentation will be invaluable when calculating your cost basis and minimizing your taxable gain.

Pro Tip: If you’re planning to sell your home in the next few years, consider making strategic upgrades that not only boost your home’s value but also reduce your taxable gain.

Avoiding Capital Gains Taxes When Selling an Inherited Home

If you’ve inherited a home, the capital gains calculation is different. Instead of using the original purchase price as the cost basis, the IRS allows you to use the home’s fair market value (FMV) at the time of inheritance.

This is called a stepped-up basis, and it significantly reduces your capital gain.

Example: If your parents bought a Clifton home for $150,000 years ago and you inherit it when it’s worth $500,000, your cost basis is now $500,000. If you sell the home for $510,000, your capital gain is only $10,000.

This rule is particularly helpful for heirs who plan to sell an inherited property quickly.

Special Note for Multiple Heirs

If multiple people inherit a home (e.g., siblings), the stepped-up basis applies proportionally to each heir’s share. For example, if you inherit half of a $500,000 home, your stepped-up basis is $250,000.

Strategies for Reducing Capital Gains Taxes

If you anticipate a significant capital gain on your home sale, here are additional strategies to minimize your tax liability:

  1. Timing Your Sale: If you’re close to meeting the two-year ownership and use tests, consider delaying the sale to qualify for the full exclusion.
  2. Renting Before Selling: If you’ve used the home as a rental, you may still qualify for the exclusion if you meet the ownership and use tests.
  3. Offset Gains with Losses: You can offset capital gains with losses from other investments (known as tax-loss harvesting).

Consult a Tax Professional

While there are clear strategies for avoiding or minimizing capital gains taxes, every homeowner’s situation is unique. Tax laws are complex and constantly evolving, so it’s important to work with a qualified tax professional or CPA. They can help you:

  • Calculate your cost basis accurately.
  • Determine your eligibility for exclusions.
  • Plan your sale to minimize taxes.

At Sanchez Realty Group, we specialize in helping homeowners navigate the selling process in Clifton, NJ, and surrounding areas. While we can’t provide tax advice, we can connect you with trusted local professionals who can.

Final Thoughts

Selling a home without paying capital gains taxes is possible if you take advantage of the IRS rules, exclusions, and deductions available to you. By understanding the Home Sale Exclusion, tracking your capital improvements, and working with qualified professionals, you can keep more of your hard-earned profits.

If you’re thinking about selling your home in Clifton or Fairlawn, NJ, the team at Sanchez Realty Group is here to help. We’ll guide you through every step of the process and ensure you have the resources you need to make informed decisions.

Ready to Sell Your Home?

Contact Roberto A. Sanchez and the team at Sanchez Realty Group today. Let us help you make your next move with confidence and clarity!

 

Co-Signing Gone Wrong

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Co-Signing Gone Wrong

Co-signing Gone Wrong

 

We did a short webinar with Marlon (The Kreditmogul), Marlon, who is very knowledgeable on credit restoration and have helped me and other people to restore their credit score to the levels that are acceptable and allow creditors extend better terms when it comes to personal purchases (car loan, mortgages to purchase a home, etc) and Co-signing gone wrong for would be home buyers.

 

 
 
Having credit allows people not just get better with their financials because credit is just about everything nowadays, right? We need to have credit so that we can purchase stuff, we need the credit, even for other things like applying and being considered for job opportunities and obtain positions where the integrity, character and responsibility of the person is important.
There are 3 parts of this webinar that we hope to help people with understanding the ramifications of each of them and how it affects their credit but most importantly their long term financial health and how to keep their credit file in good standing, this one is about a Co-sigining gone wrong, listen up. 
 
 
 

Why You Should Think Before You Co-Sign

 

The first is about being a CO-SIGNER on a loan and how doing Co-signing can go wrong! I know it sounds great. You know, that we have family and close friends of ours that might want us to help them, but it can also be a risk because the reason why I say that is that if something happens, we become a co-signer for our primary account. Yes, you are also held just as 100%, follow me 100% responsible as the primary, right. So whatever reflects on that primary reflects also on the secondary, which is the co-signer.
 
So the same liabilities are shared under the same roof guys. So be careful with co-signer. It could be as, as good tempting, but it could also be a trap for anyone who does not understand the ramification, just don’t do it and realize the consequences that can come behind that. I always share with people what I went through myself, but I always want to help people understand you can do it on your own and could be where you need to be as far as, getting qualified for an approval for auto loan, eventually a mortgage or personal debt of that nature that fall in that category without even having a cosigner, it’s all about just re-building your credit and getting yourself established and then going out there and doing it the right way. Okay. So that’s what I would share about cosigner. Be careful.

 

What Other Have Found About Being a Co-Signer on a Car Note, Consumer Debt, Mortgage, Etc

Being a Cosigners is a very delicate thing to do, especially when you cosign for people that are not directly in your circle, like a close family member or someone like that, you must be very careful, and you must know the person. I find a lot of people in my real estate practice that they want to purchase a home, but they were a co-signer for a friend and what happens is that the friend wasn’t as responsible the person thought he was, and then he goes out or she goes out and sign up for a vehicle for this person, and then all help break loose. I mean, the person has an accident, get sued, they take the car away and as would find out, the debt they don’t take away, the debt still got to get pay some kind of way and if you’re the cosigner, then now you are responsible for all these liabilities.
Lots of people have come to find out the hard way that being a cosigner is not something that you, you should think or take lightly. I mean, it’s something that maybe you can do for your daughter or son, your mom or, or somebody very close that you know is not going to get you in trouble and it’s going to be able to pay their debt and even when you do it like that, you have, you have to know that there’s certainly a degree or level of responsibility on your part, because if something happens to that person and you want to keep your credit profile in good shape, then you’re going to probably have to take over that debt eventually, Find out how you can improve your credit and be able to purchase a home hopefully without the need of a co-signer.
 
 
Call/text or email me for a FREE, Consult: Roberto A. Sanchez 973-216-1945 Rsanchez@robsrealtor.com

 

Call/Text or Email Us for an Accurate, No-Guesstimates Value of your Property, How to Buy Property, Your First or Move up/down or Invest in Real Estate

Sanchez Realty Group at United RE: 973-216-1945 or Email: rsanchez@robsrealtor.com.

Homes For Sale in Clifton by Price Range

$100,000 – $200,000

$500,000 – $600,000

$200,000 – $300,000

$600,000 – $700,000

$300,000 – $400,000

$700,000 – $800,000

$400,000 – $500,000

$800,000+

Search For Any Properties in New Jersey

Clifton RE Market – May 2021

Clifton RE Market – May 2021

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Clifton RE Market – May 2021 vs May 2020

 

Clifton RE – May 2021

(According to the GSMLS in Clifton)

Clifton RE May 2021

Single Homes SOLD (Incl, Condo/Townhomes, Active Comm Homes): 59 Homes

Median SOLD Price: $ 420,000

Days on Market: 14

Sale to List Ratio: 104.2

VS

Clifton RE May 2020

Single Homes SOLD (Incl, Condo/Townhomes, Active Comm Homes): 37 Homes

Media SOLD Price: $ 380,000

Days on Market: 19

Sale to List Ratio: 100.6

INCREASE: 10%

May 2021 continues to show strength in the Real Estate market, although this report is based on the Clifton RE, most towns in North New Jersey are experiencing the same surge in prices and it does not look like the lack in available homes will ease up the buyers demand and desire to land a property under contract creating multiple offer situations and therefore moving prices higher.

  • REMEMBER: RE is about the 3 P’s; Presentation, Promotion(Exposure) and Price.

Call us for a FREE, NO OBLIGATION consultation.

Roberto A. Sanchez

973-216-1945

 

May STATS according to New Jersey Multiple Listing Service:

As the weather warms and pandemic restrictions ease across much of the
country, the U.S. housing market shows little sign of cooling. Robust buyer
demand, fueled by low mortgage rates, continues to outpace supply, which
remains near historic lows. Nationwide, inventory remains much lower than it was
at this time last year, and sales prices are surging as a result.

• Single Family Closed Sales were up 39.2 percent to 1,105.
          • Townhouse-Condo Closed Sales were up 125.1 percent to 493.
         • Adult Communities Closed Sales were up 180.0 percent to 14.
                      • Single Family Median Sales Price increased 16.5 percent to $555,000.
                              • Townhouse-Condo Median Sales Price increased 2.9 percent to $360,000.
                                • Adult Communities Median Sales Price decreased 7.9 percent to $327,000.

With such limited supply of existing homes to purchase, all eyes are on home
builders to provide a much-needed boost of inventory to the market to help meet
buyer demand. However, increasing material and labor costs, along with supply
chain challenges, have contributed to significantly higher construction costs, with
builders passing these costs on to homebuyers. And while the warmer
temperatures, rising sales prices, and the reopening of the economy may draw
more sellers to the market, historically low levels of homes for sale are likely to
continue for some time.

Homes For Sale in Clifton by Price Range

$100,000 – $200,000

$500,000 – $600,000

$200,000 – $300,000

$600,000 – $700,000

$300,000 – $400,000

$700,000 – $800,000

$400,000 – $500,000

$800,000+

Search For Any Properties in New Jersey

Clifton RE 1st Qtr 2021 vs 2020

Clifton RE 1st Qtr 2021 vs 2020

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1st Quarter 2021 vs 2020

The 1st Quarter of 2021 is Experiencing a Surge in the Real Estate Market Like Never Before.

Clifton RE 1st Qtr 2021 vs 2020

1st Quarter of 2021 median sales price for Clifton was $ 400,000 with 188 homes SOLD and 101 Sale to List Price Ratio and 23 days on the market.

Compared to 1st Quarter of 2020 with a median sales price of also $345,000, with 108 homes SOLD 99.8 Sale to List Price Ratio and 39 days on the market.

1st Quarter of 2021: Experienced 16% Increase Over Same Period of 2020

That’s Great NEWS, Whether You’re Thinking to Sell or Someone You Know Who May, Please Help Us Get a Family Their New HOME!

WHAT TO EXPECT IN 2021!?

Interest rates ticked up a bit higher but still at historical lows and lack of homes available for sale is creating multiple offer situations and therefore price increases throughout the country.

The Northern New Jersey market as well is experiencing a strong buyer traffic and homes are going under contract in record time (usually (3-10 days) with multiple offers and in some cases way over asking.

Several points to consider:

  • In Clifton as well as other towns and neighborhoods are experiencing a shortage of homes for the anxious and desirous buyers, it’s a market still good for move-up buyers and those homeowners usually enjoy substantial gains in appreciation in the last few years which help to entice sellers when purchasing another home by affording better terms and conditions.

 

  • The Federal Housing Finance Agency is extending the assistance to homeowners wih loans backed by Fannie Mae and Freddie Mac currently in forebearance to receive another 3 months extending the Covid19 assistance to 18 months.

 

  • The expected increase of buyers traffic (60.7% higher than same period last year per showingtime.com) for the foreseeable future (2021) due to buyers looking for a more suburban lifestyle, more outdoor/indoor space, more room to breath in the outskirts of bigger cities, especially now that working remotely has and is becoming the new norm.

 

  • REMEMBER: RE is about the 3 P’s; Presentation, Promotion(Exposure) and Price.

Call us for a FREE, NO OBLIGATION consultation.

973-216-1945

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RE REport for March 2021

RE REport for March 2021

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RE REport for March 2021

The 2021 Real Estate Market is Already Sizzling Hot

February 2021 median sales price for Clifton was $ 410,000 with 53 homes SOLD and 101.2 Sale to List Price Ratio and 23 days on the market.

Compared to February 2020 with a median sales price of also $338,750, with 34 homes SOLD  99.7 Sale to List Price Ratio and 56 days on the market.

 

If You or Anybody You Know is Thinking to Move on, NOW is the TIME!

RE REport for March 2021 and Compare February 2021 vs February 2020

     

FEB-2021                            FEB-2020

Median Price: $410,000                                      Median Price: $338,750

Days on Market: 23                                             Days on Market: 56

List-to-Sold Ratio: 101.2%                         List-to-Sold Ratio: 99.7

                          #of Units:  53                                                                     #of Units: 34

February 2021: OVER 20% Increase Over Same Period of 2020

That’s Great NEWS, Whether You’re Thinking    to Sell or Someone You Know Who May, Please Help Us Get a Family Their New HOME!

WHAT TO EXPECT IN 2021!? 

The continued rock bottom, historically low-interest rates in spite of the slight increases last couple of weeks and strong buyer traffic with better weather conditions which seems will hold through the end of the Winter and start of Spring, which is traditionally the start of the busiest home shopping season in the Northeast.

Several points to consider:

    • In Clifton as well as other towns and neighborhoods we’re experiencing a shortage of homes for the anxious and desirous buyers, it’s a market still good for move-up buyers and those homeowners usually enjoy substantial gains in appreciation in the last few years which help to entice sellers when purchasing another home by affording better terms and conditions.
    • The Mortgage bankers association estimate 2.7 million homeowners are still in forbearance and might come up in the market later on mostly as traditional sellers given the strong appreciation in the last few years, however, it would not be surprising to see some short sales and even foreclosures later in the year.
    • The expected increase of buyers traffic (60.7% higher than same period last year per showingtime.com) for the foreseeable future (2021) due to buyers looking for a more suburban lifestyle, more outdoor/indoor space, more room to breath in the outskirts of bigger cities, especially now that working remotely has and is becoming the new norm.

 

  • REMEMBER: Real Estate is about the 3 P’s; Presentation, Promotion(Exposure) and Price.

Call us for a FREE, NO OBLIGATION consultation.

Roberto A. Sanchez

973-216-1945

 

 

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This is the Best Possible Time to Sell if Thinking to Move.

 

 

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18-19 River Rd, Fair Lawn, NJ 07410

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2021 RE Market Skyrocketing Up Already!

2021 RE Market Skyrocketing Up Already!

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2021 Real Estate Market Skyrocketing Already!

 

 

 

The housing market is already skyrocketing into 2021 so far. Buyers and their high demand have far outnumbered sellers and a short supply of houses. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 23.7% from the same time last year while the inventory of homes available for sale is down 25.7%. There are 360,000 fewer single-family homes for sale today than there were at this time last year. This increase in demand coupled with such limited supply is leading to more bidding wars throughout the country.

Rose Quint, Assistant Vice President for Survey Research with the National Association of Home Builders (NAHB), recently reported:

“The number one reason long-time searchers haven’t made a home purchase is not because of their inability to find an affordably-priced home, but because they continue to get outbid by other offers.”

A survey in the NAHB report showed that 40% of buyers have been outbid for a home they wanted to purchase. This is more than twice the percentage in 2019, which was 19%.

 

What does this mean for sellers today?

It means sellers have tremendous leverage when negotiating with buyers.

In negotiations, leverage is the power that one side may have to influence the other side while moving closer to their negotiating position. A party’s leverage is based on its ability to award benefits or eliminate costs on the other side.

In today’s market, a buyer wants three things:

  1. To buy a home
  2. To buy now before prices continue to appreciate
  3. To buy now and take advantage of historically low mortgage rates while they last

These three buyer needs give the homeowner tremendous leverage when selling their house. Most realize this leverage enables the seller to sell at a good price. However, there may be another need the seller has that can be satisfied by using this leverage.

Sellers must use these benefits to buyers wisely while negotiating the best terms and conditions during a sale to ensure a smooth transition while selling their home for the highest amount possible and under the best terms and conditions.

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This is the Best Possible Time to Sell if Thinking to Move.

 

 

Contact Us

9 + 14 =

 

Our Address Is:

18-19 River Rd, Fair Lawn, NJ 07410

Our Telephone:

888-501-6953 Ext. 254 or Cell: 973-216-1945

E-Mail:

Rsanchez@Robsrealtor.com

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Northern New Jersey Real Estate Market

Northern New Jersey Real Estate Market

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Northern New Jersey Real Estate Market

Clifton RE Market Report – 2nd Half 2019 vs 2020 

 

The Northern New Jersey Real Estate Market and specifically the town of Clifton RE Market Report – 2nd Half of 2019 VS 2020

Take a Look at Your Local Housing STATS (For Stats Pertaining to your Local Neighborhood, feel free to reach out)

Median Sold Price for Homes Sold ifrom July-December 2019

Single Homes SOLD (Incl, Condo/Townhomes, Active Comm Homes): 377

Median-Price – Median Sold Price – Sale to List Ratio – DOM

$ 359,000                $ 360,000                    100                       31

VS

Median Sold Price for Homes Sold ifrom July-December 2020

Single Homes SOLD (Incl, Condo/Townhomes, Active Comm Homes): 61

Median Price  – Median Sold Price  – Sale to List Ratio – DOM

   $ 398,500                 $ 400,000                    100                        20

Over 10% Increase

ABSORTION RATE:

Extremely low, in less than 2 Months all available homes would be gone if no other homes were listed, which is a great indicator of the market activity in a particular area, typically a over 5-6 months of inventory is consider a buyers market.

This is still an outstanding increase of value in just a year, in spite of the health crisis and the tremendous share of uncertainty in many areas of our lives, real estate still shows strength and resiliency in the face of continued concerns about the resurge of Covid-19 cases and virus strains.

WHAT TO EXPECT IN 2021!? 

The continued rock bottom, historically low interest rates, strong buyer traffic in spite of the past Holidays and now severe Winter season in the Northeast tells us its a great time to be a seller, these conditions have contributed to the continued rise of prices, which have been offset the increases in mortgage payments.

Several points to consider:

  • New construction permits by builder is much higher however, it will take some time for these homes to become available.
  • There might be an increase in listings due to homeowners in hardship looking to sell to avoid foreclosure.
  • Expected increase of buyers traffic (60.7% higher than same period last year per showingtime.com) for the foreseeable future (2021) due to buyers looking for a more suburban lifestyle, more outdoor/indoor space, more room to breath in the outskirts of bigger cities, especially now that working remotely has and is becoming the new norm.
  • After a period of continued uncertainty it might be the best time to sell higher in a high demand-less inventory market, attaining higher price with possible multiple offers and better terms/conditions.
  • REMEMBER: RE is about the 3 P’s; Presentation, Promotion(Exposure) and Price.

Call us for a FREE consulation.

 Have a great week and Prosperou, Peaceful and Healthy 2021

BE SAFE!

Homes For Sale in Clifton by Price Range

$100,000 – $200,000

$500,000 – $600,000

$200,000 – $300,000

$600,000 – $700,000

$300,000 – $400,000

$700,000 – $800,000

$400,000 – $500,000

$800,000+

Search For Any Properties in New Jersey

Clifton RE Report – DECEMBER 2020

Clifton RE Report – DECEMBER 2020

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Clifton RE Market Report – DECEMBER 2020.

Take a Look at Your Local Housing STATS (For Stats Pertaining to your Local Neighborhood, feel free to reach out)

Median Sold Price for Homes Sold in DECEMBER 2020

Single Homes SOLD (Incl, Condo/Townhomes, Active Comm Homes): 74

Median-Price – Median Sold Price – Sale to List Ratio – DOM

$ 395,000              $ 400,000                 100.2                    22

VS

Median Sold Price for Homes Sold in DECEMBER 2019

Single Homes SOLD (Incl, Condo/Townhomes, Active Comm Homes): 61

Median Price  – Median Sold Price  – Sale to List Ratio – DOM

$ 369,000             $ 360,000                 100                33

That’s an Increased of 10.5%

Over 2019

ABSORTION RATE: 2 Months of Inventory of homes,

This is still an outstanding increase of value in just a year, in spite of the health crisis and the tremendous share of uncertainty in many areas of our lives, real estate still shows strength and resiliency.

The further reduction in interest rates have contributed to the price rises as it helps offset the increases in mortgage payments.

 

 

Several points to consider:

  • There might never be a better time to sell than now
  • Interest rates continue at an all-time low, making it a great time to Buy or REFINANCE your higher rate mortgage and meet your financial needs whatever they might be.
  • Expected increase of buyers traffic (60.7% higher than same period last year per showingtime.com) for the foreseeable future (2021) due to buyers looking for a more suburban lifestyle, more outdoor/indoor space, more room to breath in the outskirts of bigger cities, especially now that working remotely has and is becoming the new norm.
  • After a period of continued uncertainty it might be the best time to sell higher in a high demand-less inventory market, attaining higher price with possible multiple offers and better terms/conditions.
  • REMEMBER: RE is about the 3 P’s; Presentation, Promotion(Exposure) and Price.

Call us for a FREE consulation.

 Have a great week and Prosperou, Peaceful and Healthy 2021

BE SAFE!

 

 

 

 

 

 

 

 

 

 

 

See Recently SOLD Homes in your Neighborhood

See Recently SOLD Homes in your Neighborhood

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Serious Mortgage Delinquencies in New Jersey?

Serious Mortgage Delinquencies in New Jersey?

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Serious Mortgage Delinquencies in New Jersey?

 

 

A lots of people have asked me,  can we expect a new wave of foreclosures coming into the marketplace in the next six months to maybe even 24 months from now due to the fact that there’s a lot of people that are a little behind on their mortgage?

The question is if there are serious mortgage delinquencies in New Jersey?.  According to Black Knight, technology company that tracks mortgage data, they came up with some numbers:

The amount of borrowers delinquent that are actually applying for some kind of modification or loan worker with their lenders fell by 340,000 people in the month of July, that’s a 9% decrease from the month previous month of June.  That is good news.

However, homeowners that are 60 to 90 days, or even over 90 days behind in the mortgage payments or our serious delinquent that went up by 376,000 In the month of July, that’s a 20% increase from June which is concerning a bit.

There’s over 2 million people that are actually in some kind of modification or workout plan  with their  lender, aAnd that’s the highest level since 2010,  we know what happened back then.

85% of these people are in some kind of forbearance or workout plan and obviously in some kind of economic distress, we know that the economy haven’t  fully recovered and especially people that work in the hospitality, leisure and the food industry,

That situation is similar in many other industries where, the economy for them to have not fully recovered, we also know that in some cases households with two income earners where one of them haven’t been fully employed yet, or maybe had to stay home to school and take care of their kids.

Also, according to Black Knight, among the top five States with the most delinquencies are;

Mississippi, Louisiana, New York, Hawaii, and New Jersey, but they also have the top five States with the most serious delinquencies which are  also Mississippi and Louisiana, Nevada, Alaska, and again New Jersey.

There’s some good news as we know in the last five years or so values in homes have skyrocketed and lots of homeowners have a lots of equity in their homes, among other factors that can help them steer clear of foreclosure.

(Check this video to see the difference between now and the last great recession) So there might be a way out of this situation, even when the lender cannot offer a suitable solution.

If you or anyone you know and care about need to be pointed the right direction and/or need any kind of advice, or a referral to a professional that can be of assistance,  feel free to reach out to us at (973) 216-1945.

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