Real Estate Information

Orly Steinberg of Coldwell Banker presents:

The New Jersey Real Estate Podcast

How Passaic County Home Buyers Better Their Negotiating Position  

The current Passaic County real estate market is challenging for both buyers and sellers. Many sellers have not accepted the fact that their home has decreased in value and are trying to sell at peak 2006 prices. At the same time, buyers want to make sure they don't overpay, fearing prices will continue to drop even more.

Of course, there are exceptions. Well priced homes in desirable neighborhoods or foreclosed properties selling at ‘yard sale' prices may generate multiple offers. But all in all, it is a buyer's market.

So how do Passaic County home buyers prepare to make an offer and put themselves in the best negotiating position? Here are some suggestions made by Diane Hymer in a recent Inman news article:

1. Before you make an offer on a listing that's priced over market, try to find out as much as possible about the sellers' motivation, and if there's any flexibility in their price. If the seller owes more than the house is currently worth, they may not have any negotiating room. They may want to sell the house, but really can't sell at today's prices.  A lot of time and emotional energy goes into making an offer. Save your efforts for listings where the sellers are motivated. That is, they don't just want to sell -- they need to sell.

Some sellers want to test the waters at a price that's higher than the market will support. They usually feel that someone will appreciate the added value their home offers and pay more for it. However, these sellers will often negotiate with a legitimate buyer who offers a price that is less than the list price.

2. Make sure that your financing is in order and that you are able to show the seller that you are capable of closing the deal. The fallout ratio is high in the current market. Many of these transactions fail to close because the buyers couldn't get financing.

It's always a good idea to be preapproved for the financing you'll need to buy a home before you make an offer. Preapproval involves making a formal loan application, having your credit checked, as well as verifying your funds for down payment and closing costs, and validating your income and employment. Lenders often want to know that you have enough surplus cash to make house payments (mortgage, property taxes and insurance) for two to three months.

3. Buyers who make an initial low offer and who aren't in competition should make as clean an offer as possible. This means omitting anything that's not necessary. However, you should include contingencies for loan and appraisal approval and an inspection contingency.

It's a good idea to include a copy of your preapproval letter with your offer. If you are approved for a higher price than you are offering, ask your lender or mortgage broker to issue a preapproval letter for the price you're offering.

4. Be prepared to negotiate. It may take several rounds of counter-offering back and forth to reach a mutually acceptable price.

Are you thinking about buying a Passaic County home? We are glad to help you with your preapproval process, show you homes with motivated sellers and craft an offer putting you in the best possible light with the seller and results in getting you the best possible deal.

Search all Passaic County homes for sale.

Although 2008 proved to be a very challenging year in many aspects including the Real Estate Industry I am optimistic about 2009.

Count me among those who are cautiously optimistic about what is ahead of us.  I truly think the worst is behind us, and indeed see several indications that 2009 might be better than we would have predicted just a few months ago.  We have experienced the economic earthquake and the aftershocks, although there are a few more coming.

     Its still too early to tell how the government actions taken in October will affect the housing industry and the economy as a whole. With a new government coming in there will be several adjustments to those plans.  What won't change is that the Real Estate industry is a focal point in the effort to restore consumer confidence and turn things around.

    The gap between Buyers and Sellers is coming closer together with Sellers finally accepting the reality of the market and that they won't make as much as they wanted and Buyers realizing that prices are begining to stabilize.  Buyers are also taking advantage of not only the low prices but low interest rates which are gaining them $100's of dollars in their pockets on a monthly basis (depending on their mortgage) earning them much more purchasing power.

    Looking back in a few years people will realize what wonderful opportunities were available and those that did not take advantage will regret their overly conservative decision.

     There are so many opportunities in this market and I have seen the increase in activity in the market place. 

      All told, these types of element - concerted actions of the government or various stakeholders, excellent conditions for buyers, a subtle shift in media tone - all bode well for the Real Estate industry.  Its been a long, bumpy ride, and it won't be completely smooth anytime soon.  But amid the fear and frustration we continue to face, there's ample reason to believe in brighter days ahead.

Passaic County NJ Real Estate For Sale:

61 Lily Road, Wanaque NJ 07456
MLS#   2604005

PRETTY, PRIVATE AND YOU CAN MOVE RIGHT IN! 2 STORY ON VERY QUIET CUL DE SAC IN WANAQUE HAS BEEN NICELY UPDATED AND FEATURES 2 GENEROUS BEDROOMS + ADDITIONAL ROOM OFF MASTER BEDROOM!! 2 FULL BATHS! HUGE 1.4 ACRE LOT TOO!!.............call "ONLY" ORLY TODAY at 973-962-5410.

For more information on 61 Lily Road in Wanaque or other Passaic County NJ real estate visit OnlyOrly.com.

Search all Passaic County NJ real estate for sale.

  With Thanksgiving coming up everyone is planning their menus.  What is a Thanksgiving without cranberry sauce?  I grew up with the canned kind that was more like a gelatin and thought that was the way to go.  Even as I grew to enjoy cooking from scratch- everything from the  stuffing to the gravy, homemade cakes and desserts, I still held on to the old sauce. 

Last year I decided to make my own cranberry sauce.  It was SO easy and So delicious.  It was also fun to make.  I enjoyed watching the cranberries pop and then thicken.  For so little effort, the difference from the canned variety was a huge one.  This is a great recipe I got from the internet....

INGREDIENTS (Nutrition)

• 1 cup white sugar
• 1 cup orange juice
• 1 (12 ounce) package fresh cranberries

DIRECTIONS

Thats it!  It will serve 12.  It keeps it the refrigerator for up to 10 days so its nice to make it ahead of time and one less thing to do on the big day!

posted by

Merry Lapine

Buyer Specialist on Only Orly's team