THE REAL ESTATE MARKET IN NORTHERN JERSEY
by Fran Lichtman
It used to be that spring market started after Superbowl Sunday. But like we’ve told you before, COVID has changed everything. While there used to be seasonality in the real estate market, since COVID, with the exception of a week here and there, when a house comes on the market MANY buyers are waiting.
We’ve already told you about how the year has started out with extremely limited inventory and very high prices. This remains true. Now we want to share with you the other thing that we are seeing more often than once.
As agents who have represented both buyers and sellers in our 18 years in business, for a long time we have understood the importance that role that the terms of an offer can play. More than ever now we see that it’s not only the highest price that sellers want but they are also in a position to set the terms.
We are seeing sellers put their home on the market now even though they aren’t planning to move for several months. More than once already this year, we have encountered sellers who are requesting to lease back after closing. And many buyers are fine with it, but only some are in a position to do it.
The other interesting change that we are seeing is that buyers are represented by agents from everywhere. A couple of weeks ago a West Orange listing had 23 offers (these sellers also wanted to lease back). Of the 23, only 7 were represented by agents who regularly do business locally (Summit to Montclair).
So what does this mean to you if you are thinking about selling?
1. You should get your house the most exposure possible. That means put it on the MLS. That will feed to all other real estate outlets. Unless you have some extraordinary circumstances, do not do an exclusive listing with one brokerage and do not do a private deal. Put your house out to the world and let people fight for it.
2. Make sure that you are represented by an agent who can help you evaluate all the offers and get you to closing. There are so many things to consider when it comes to terms right now that you definitely need someone who is very knowledgable to help you sort it out and choose the best offer. You don’t want to select a buyer who isn’t going to be able to close or one who can close but puts you in a position to net much less than you expected.
What does it mean for you if you are a buyer?
You also need an experienced agent. In this market, you have a lot to consider and it’s the little things that can make a big difference in getting the house or not.
If you want to talk more about the details of your individual situation, reach out to us. Let us help you plan the best strategy to meet your goals.