March 2024 Newsletter

Forward March!

Now that we are officially in the Spring season, listings are starting to come on to the market. We are still at the start of the season, and we will likely see a peak in listings in the April-May months. 

A Snapshot of the Offer Activity

A handful of properties have already closed and they provide valuable insight into home price trends for both sellers and buyers.

But most of the properties that hit the market in February are currently under contract, but have not closed. So what information can you use to give you an advantage when you want make an offer on upcoming listing? Let me show you.

 
Agents track the number of offers for each property and by knowing the rank of a losing offer, we have insight on the financial capabilities of the competition and the number of active buyers in the current market.
 
It's worth noting that listing agents have been known to price a house significantly below market value to attract multiple offers. The result is numerous offers well below what the seller would consider. 
 
The breakdown of offers usually resembles the following scenario:
· About 20% of the offers qualify as serious contenders
· Most offers are bunched in the middle generally within a few thousand dollars of each other.
· The rest will fall in the bottom rank, as the buyers are likely unaware of the under-listing practices.
 
Using Home Offer Analysis to give you an edge when you bid on the home you love:
 
Cooper:
The low list price of this estate sized property brought buyers out, and the size and the condition of the house were comparable to homes in the $2M range despite a 1.299M list price. For this property a $1.825M offer came in 5th place out of 22. That means that there are still 3 buyers out there with strong finances that will be competing for the the next house in your range. Cooper closed at $2.125M.
Key takeaway: A strong offer, but if you want to win the next one, we need to be a bit more agressive.
 
Greenbrook
The condo’s low price, nice location, good school district and generous size, brought in buyers that ranged from families to downsizers - making this a very popular property. An offer of $501K at 10th means there are at least 8 others who will be your future competition when something similar comes on the market 
Key takeaways: If this is truly your target home, we need to reconsider your offer strategy to be more aggressive. If that puts properies like this out of your comfort zone, lets consider other houses that may be more attainable.
 
North Fullerton
A good “starter home” or potential downsizer in a sought-after neighborhood, with a nicely redone first floor, a new kitchen, and a list price below $1M attracted many offers. And the offer of $1.35M was SOOO close – coming in second meant it was almost enough but not quite. The loser often will not know how much they lost by until the property closes.
Key takeaways: A strong offer that we were comfortable with, but you can't win them all. 
 
Haddon
This is where it's interesting – Haddon came on after North Fullerton. Knowing there were 16 offers on Fullerton, this charming “starter” home in prime location (close to train, bus and upper Mtc business district) was going to attract the same buyers. While not as renovated, it was in move-in condition, and it had lots of potential. Now the offer of 1.26M was 100k less than Fullerton and ranked 10th. I’d likely have advised kept the offer similar to what was offered on Fullerton. While Fullerton was improved, location at Haddon was closer to all transportation.
Key Takeaways: Although the houses had different features, they attracted the same buyers allowing us to predict the bidding stratgies. Using information from previous weeks bids will help you target a winning bid.
 
Buckingham
On the plus side this split level was fully renovated, close to an elementary school and low priced. On the negative side the location was less desirable as it was farther from business districts and the train. 
Key Takeaway: Knowing that Haddon and Fullerton had 17 offers and the losing offers were at $1.2M & $1.35M, I would have advised my client to keep their offer close to the Haddon and Fullerton ranges. FYI: this house was removed from the market due to seller's changed circumstances.
 
Of course there are other strategies to improve your offer - conditions like downpayment, closing dates, contingencies matter. However the dollar amount is by far the most important aspect of your offer. We will do everything we can to make sure that you have a compelling offer, but without the competitive price, the other details are never even considered.
 
Every deal and client is different. As agents, we will advise you of an offer price, but YOU need to feel comfortable with our suggestions. Sometimes that means you must lose offers to learn.
 
Agents have a lot of information, and when used correctly it helps sellers to price homes for optimal sales results and buyers with winning offers. Let's discuss how we can leverage market intel to make sure you win your next dream home.

Local Happenings

Friday, March 15, 2024

Newark, NJ - St Patricks Day Parade

Ceremonies will begin at noon with the parade beginning at 1:00 pm, Beginning from the corner of Mulberry St and Raymond Blvd continues past the NJPAC Center.
 
>>>more info here

V Yan Hot Pot

While there is still a chill in the air, take a quick trip out to Parsippany for Korean Hot Pot and BBQ. Families and friend groups come from miles around to gather and enjoy piping hot bowls of your choice of broth and BBQ. Try to get there early as there is often a wait.

March 23th, 24th, and 30th, 2024

Annual Easter Bunny Express

Celebrate the return of Spring with a fun themed train ride through northern New Jersey! The Easter Bunny and helpers will be on board greeting everyone during the 45-minute round-trip ride along the historic Whippanong Trail.
 
>>>more info here

Spotlight on Jersey Music

Long the source of musical inspiration, Jersey will be vibrating once again this spring and summer with tantalizing tunes. And there is something for everyone.
For legendary funk, bow down to the master this May when The Parliament Funkadelic with their indefatigable leader George Clinton will be playing at the Wellmont theatre in Montclair.
Chill with Outpost in the Burbs to hear Josh Ritter up close and personal. His bluesy, folksy, southern rock sounds will be resonating down in the 1st Congregational Church on South Fullerton in Montclair. Hallelujah!
If you missed the opportunity to buy tickets to Asbury Park’s Sea. Hear. Now Festival featuring Bruce & The E Street Band with Jack Kahan, then log on and grab tickets to see NJ’s Jack Antonoff’s band, The Bleachers who are on tour promoting their self titled new album, and see them rocking wild in their native habitat at the Stone Pony in June.
To the right, read some final words from Jack, defending his home state like a nice Jersey boy.

Real Estate in the News

Younger Buyers Want Baby Boomers to Update Their Homes

Millennials are worried they'll inherit properties in need of major renovations and repairs, which could further hamper affordability, a new survey shows. 

Courtesy of Realtor Magazine

Top 10 Hottest Housing Marketings in 2024

The top 10 hottest housing markets are expected to be spread across the South, Northeast and Midwest this year, according to an analysis by real estate marketplace Zillow.
 
But a 'hot' market isn't always great for would-be buyers...

Courtesy of CNBC

A Checklist for Moving to Your New Home

Make moving day less hectic by packing, planning, and organizing six weeks before you relocate.

Courtesy of U.S. News

Kitchen + Dining Room From HGTV Dream Home 2024

Beautiful blue cabinetry provides tons of storage in this open kitchen with stunning water views. A lighter aqua-colored island gives family and friends a spot to gather around in this delightful space with layers of blues...

Courtesy of HGTV

Thanks for reading and subscribing! Ready to achieve your next real estate goal?

Reach out to chat!

Meredith Bergmann
 
Principal Agent
M: 917.355.4074
O: 973.310.7360
MeredithBergmannHomes
[email protected]

Office: 973-310-7360

Compass RE is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.