Since March I have been fortunate to work with first time home buyers in a variety of towns along the Midtown Direct train-line in NJ. In that time these buyers have had to suffer several losses before grabbing the perfect home to fit their needs. Yes folkes, multiple bids are back, and in a really big way.
With all the negative media hype about the housing market buyers start off feeling like they are in control and will decide what a house is worth. Even though I can advise and guide, ultimately the offer price is their decision. In each case it took losing out in multiple bid situations (which are quite nerve wracking) before fully understanding when they see a house they really like – chances are competing buyers will also want the home for the very same reasons. This has happened to my buyers in Maplewood, NJ, South Orange, NJ, Millburn, NJ, Chatham Boro, NJ and now in Madison, NJ.
Six months ago neither I, nor the pundits, could have predicted the rapid turnaround these markets are experiencing. Listing Realtors are still pricing properties against comps that may be 6 months old, but anything more than a month or two is completely irrelevant.
Buyers — A Word to the Wise; if you really like a property go in with an offer that is above list price with terms that are favorable to the seller (like a flexible closing date or a large downpayment /good faith deposit). My current buyers have lost two great homes in the last two weeks, including an offer that was 1.6% over list price. It’s a tough lesson -and my heart goes out to them. On the bright side, now they are ready and determined to secure the next one . Here are some pics of the homes they lost – wouldn’t you have wanted them too? Click on the pictures to enlarge.
First House – Chatham Boro – Colonial 3 bedrooms / 1 bath – walk to train and town
Madison, NJ – Ranch – 4 bedrooms / 3 baths – close to town and train