Top 5 Factors That Impact NJ Real Estate Prices

new jersey real estate

Currently, the median home value in New Jersey is $342,527. If you are selling or buying a home, it is important to understand what factors go into determining a home’s value and how these factors impact list price. Here are some tips that can help you ascertain the value of your home.

1. The Big Three: Location, Product, and Timing

How well a home has been maintained and where it is located impacts the value of the home as a product. The right home in the right neighborhood can go a long way to drive up home value. Timing is harder to control. If you are selling, you want to list when the market is in your favor—but the market can change quickly.

2. Structural Integrity

Appraisers will perform a detailed physical inspection of the entire house – floor to ceiling and wall to wall. An appraisal inspection is meant to note not just superficial imperfections but also serious structural issues.

How well the home was originally constructed (and updated, if applicable), as well as the quality of the materials used, will impact an appraiser’s assessment of a home’s value. Even small details are given consideration. They will compare these details to homes in the area and adjust pricing according to specific similarities and differences.

3. Market-Driven Features

Every localized real estate market is going to have specific home features that impact the value of a home. Marble counter tops were a luxury ten years ago—they are the norm now. Consumer preferences drive expectations of required home features. If sold homes in your area boast open floor plans, gray scale interior colors, and hardwood flooring, this will set the bar for how your home will be valued.

4. Condition of the Home

Take care of any maintenance or small projects you have been avoiding. Fresh paint, manicured landscaping, and clean spaces will go a long way to showing off the full potential of your home. Make sure all the appliances you are selling with the house work and can pass inspection. You want to make sure your home looks like the most appealing home on the block.

5. Size and Appeal

Traditional layouts are big draws right now. Open floor plans and neutral color schemes are too. In matters of real estate, at least, size matters. Price per square foot is a popular search filter used by a multitude of potential buyers.

If you are a buyer, you can keep all of these factors in mind as you look for your future home. When you are trying to figure out how much you are willing to spend on a specific home, be realistic. It is common for buyers (and sellers) to think with their stomach and not with their head when it comes to estimating the value of a home. Remember that if a home appraises for under the contracted sale price, the sale could fall through. No matter how much value you personally put on a home, that value has to be backed up by the market.

If you’re ready to make a move, Veitengruber Law is ready to help you achieve your next real estate goal.

5 Tips for a Successful New Jersey Real Estate Investment Purchase

NJ real estate

It can be difficult for beginners in real estate investing to determine which properties would be a good purchase. You may have a plan, your finances might be stellar, but once it’s time to take action, sometimes even the best laid-plans get derailed. If you are looking to invest in New Jersey real estate, there are some things you should keep in mind as well as specific properties to steer away from as you make your first investment(s). To help get you started on the right foot, we’ve compiled five tips that will guide you toward a successful NJ real estate purchase.

1. Keep an Open Mind

The biggest key to successfully investing in real estate is to remain open to the possibilities around you. Don’t go into your property search looking for anything too specific. Even if you have a mental picture of investing in a residential home to flip – don’t ignore the excellent commercial real estate opportunity down the street. There are so many different types of real estate opportunities available to you! By keeping an open mind, you’ll be less likely to miss out on something great.

2. Be Mindful of Location

You might find a fantastic property and fall in love with it instantly. WARNING! Don’t invest until you have a good, solid understanding of the location. There is a rule in real estate: “A bad house in a great neighborhood is better than a great house in a bad neighborhood.” You can always renovate a property—you can’t give the street a makeover.

3. Prepare for Competition

The popularity of investing in New Jersey real estate is on the rise. Don’t be surprised if you put an offer in on a property only to be outbid. Some of the biggest competition you will likely face will be from all-cash buyers. Many all-cash buyers are offering full price or more in order to secure their investment. Be aware of these competing investors, but don’t be dissuaded if you are outbid a few times. Ask sellers about their goals and see if there is any way you can help them meet those goals.

4. Look Past the Staging

Home staging is an increasingly popular trend for sellers looking to get an edge in the market. And there is a good reason for this: many buyers are more likely to overlook faults with the property if it is staged. Don’t let the aesthetics of staging deter you from asking the important questions about a property. Make sure you move things around, test hardware and appliances, and get to the bones underneath the picture-perfect set up.

5. Know When to Quit

Don’t be afraid to cut your losses and get out if you make a bad investment. Even some experienced investors will stick with a bad investment in a futile effort to recuperate the money they sunk into a property. It’s possible that what seems like a sure bet can take a nosedive and turn out not to be a money-maker. Smart investment behavior includes knowing when to walk away, learn from your mistakes and make better choices next time.

 

Real estate can be a challenging and rewarding opportunity for motivated investors. The sky is the limit when it comes to your real estate goals. If you follow these five tips, you will be on your way to a successful NJ real estate purchase!

 

 

 

 

 

 

 

Can I be Approved for a NJ Mortgage with a Bad Credit Score?

NJ mortgage

A lot of people with a bad credit score assume it is impossible to become a homeowner. A low credit score can definitely make it harder to get a new credit card or any type of loan, including (and especially) a mortgage loan. If the one thing standing between you and home ownership is your credit score, don’t give up hope. It is possible to get approval for a NJ mortgage with a low credit score.

What is considered a “bad” credit score to mortgage lenders?

Different lenders have different criteria for loan applicants. The lower your score, the more likely it is that potential lenders will see you as a risk. If your score is somewhere in the middle—between 620 and 740 (approximately)—there is a little more wiggle room. While you will likely face higher interest rates and be restricted in how much you can borrow, you should still be able to secure a mortgage loan without much issue. Generally, if your score is under 620, you will not be able to get a loan from a traditional lender. But that doesn’t mean you have no options for getting a loan; it just means you will have to go through less traditional lenders.

Private Lenders

One option for borrowers with low credit scores is to go with a private lender. Mortgages through private lenders often come with higher interest rates and more substantial minimum down payments for borrowers with bad credit. You also may have to do a little more work with a private lender, like providing additional paperwork that is typically not required with a traditional lender. It’s important to do your due diligence when going through a private lender. Shorter payback periods and higher interest rates can make it difficult to make your monthly mortgage payments. Make sure you will be able to make timely payments in full for the duration of the loan.

FHA Loans

Another possibility is a Federal Housing Administration (FHA) loan. If your credit score is at least 580, you can qualify for an FHA mortgage with 3.5% down. With a score between 500 and 580, you will need to put at least 10% down. The cutoff for credit scores with an FHA loan is 500. Downsides to an FHA loan include: high interest rates and a mortgage insurance premium of 1.75% as well as monthly insurance premiums. If you pay less than 10% of the loan for your down payment, you will have to pay these monthly insurance premiums throughout the life of the loan.

Mortgage Tips for Low Credit Score Borrowers

Sometimes it’s possible to make up for a bad credit score in other ways. You can offset the risk of the loan by offering to pay a bigger down payment. While first-time home buyers typically put down 6% or less, making a 20% or more down payment could encourage lenders to approve your application despite a poor credit score. Plus, the more money you put down, the lower your monthly payments will be.

Another option is to enlist the support of a co-signer. If you have a close friend or family member with a great credit score, they could help you secure a mortgage loan. This is not a commitment to take lightly, though. While the mortgage is in your name, the co-signer will be equally responsible for any payments. This means if you miss a payment, their credit will be negatively impacted. Working with a co-signer requires a lot of communication and trust.

#1 Way to Own a Home with Bad Credit

If your goal is to buy a property but your credit score is poor, the best thing you can do is take the time to rehab your credit score. The higher your credit score, the better chance you’ll have of working with a traditional lender. Working with a traditional lender means your down payment, interest rate and monthly payments will be lower. Regardless of your situation, Veitengruber Law can help you determine which path to home ownership is best for you.

How Owning a Home in NJ Affects Your Net Worth

When it comes to numbers, especially finances, some of us become easily overwhelmed, which is totally normal. There are so many important numbers involved in staying afloat financially. Many of us keep close tabs on our various accounts such as our savings account, checking account, retirement accounts, and investment accounts. Though we attempt to use these accounts to prepare for the future and try our hardest to ensure that we will be financially safe, there is one critical number that defines how successful you will be at building your assets for the future. That is your net worth.

Net worth is probably a term you’ve heard before, but may not fully understand what it means. Your net worth is equal to your total assets minus your total liabilities. Your liabilities are the total amounts of money that you owe to any creditor. They are easier to calculate, as you most likely receive a reminder at the end of each month that lays out the exact amount you owe to creditors. On the other hand, it can be more challenging to accurately calculate your assets. You don’t want to give yourself a dishonest sense of financial security by overestimating your net worth, so always err on the conservative side.

Your house is probably the most valuable asset that’s in your name, so its monetary value will have the most influence on your net worth calculation. To estimate your home’s value, work with an experienced real estate professional. In general, it’s best to be conservative when estimating values of assets such as vehicles, jewelry, home furnishings, etc. Instead of basing figures off of how much you paid for it or how much you wish the valuable was worth, base it off of what you could sell the item for now.

As mentioned before, your house probably holds the most value of anything you own. Therefore, your net worth will be determined by how much equity you have in your home. When you calculate your net worth, you must subtract your liabilities, and that includes your mortgage. For example, if your home is worth $350,000, but you owe $100,000 on your mortgage, then your home will increase your net worth by $250,000 ($350,000 – $100,000 = $250,000).

Unsurprisingly, there is disagreement as to whether or not a home’s value should be included when determining net worth. Those in favor think that since a home is someone’s most valuable asset, it should absolutely be included. Those against argue that if you sold your house in order to actually use the money from the sale, then you may not have somewhere to live. To consider both opinions, many people will create two net worth calculations: one including a home’s value (as an asset and liability if a mortgage still exists) and one without it (continuing to include the liability if there is still a mortgage to be paid).

In New Jersey, depending on where you live, the value of land may be high, low, or somewhere in the middle. Depending on land value and the current market in the area, home prices are going to fluctuate. Remembering what you’ve learned so far, if a house is valued at a higher amount, an individual is going to have an increased net worth. If you purchase a home in a wealthier area, this will add more to your net worth opposed to if you bought a home in a middle or lower class area.

Another thing to take into consideration is a vacation home or rental property. These can actually have a positive influence on your net worth. Condos are usually purchased as vacation homes and are bought with cash. Good news: your net worth will increase by the same amount that the home is valued at, if you paid in cash.

Hopefully, net worth makes a tad more sense now and you know how owning a home will affect it. Since it’s a critical number to consider in the realm of finances, it’s important to know what goes into calculating that number. If you have more questions, or are looking for help with calculating your net worth, reach out to a real estate team near you.

The 5 Hottest New Jersey Real Estate Markets in 2018

New Jersey real estate

A view of the footbridge over the lake in Asbury Park, NJ

The New Jersey real estate market still hasn’t reached the heights we saw during the pre-recession housing bubble. That doesn’t mean that the housing market is suffering, though; in fact, there are definitely markets where home values have been rising rapidly over the past year.

This is a list of some of the hottest NJ real estate markets where the average homebuyer still has a great shot at securing a home that fits their budget. That means that we aren’t going to include areas where buyers are routinely outbid by wealthier competitors (we’re looking at you, Hoboken and Montclair).

The towns we are focusing on are desirable areas with specific charms that will make you proud to call them home. Prices in these areas are on the rise across the board, so if you’re looking to purchase a home – don’t wait – this summer and fall are the best times to take the plunge.

 

#5. Asbury Park, Monmouth County

Median home price: $324,500

This booming region remains a bargain despite its beautiful coastal location, so if you want to settle in where things are almost certainly going to continue heating up, this gem might be just the place. With art galleries, museums, water parks, beachfront shopping and dining, and award-winning public schools, Asbury Park will appeal to a wide range of tastes. The city-driven revitalization efforts of the past several years are paying off in terms of development and real estate, so this is a prime time to join the warm and welcoming community of Asbury Park.

 

#4. Mountainside, Union County

Median home price: $595,000

Mountainside is a secluded, beautiful town spread over four square miles. Buyers who desire a location somewhat removed from urban sprawl will want to take note of Mountainside’s status as a retail relief zone as well as its shared border with the nearly 2,000-acre Wachtung Reservation, the largest in Union County.

Mountainside doesn’t have a train station, however, so unless you work locally or from home, this area may not be a good fit. However, Mountainside is in the top 5% in the country for individuals who work in the technological fields, notably computer science and mathematics.

 

#3. New Providence, Union County

Median home price: $586,250

New Providence is a commuter’s dream. With two train stations and a burgeoning downtown area, this 3.56-mile borough is attracting more people now than ever. Once a sleepy town where almost exclusively banks and salons operated, New Providence now has all the hallmarks of a bustling area, notably chains like Chipotle and of course, Starbucks. Buyers are competing to snag homes in Murray Hill, West Summit, and Tall Oaks to avoid the still more expensive real estate markets in Chatham and Summit.

 

#2. Oradell, Bergen County

Median home price: $572,125

Oradell’s shady streets, easily walkable downtown, and small-town feel have been drawing in a large number of homebuyers over the past few years. Located an hour’s bus or train ride from Manhattan, this charming town offers prospective buyers the choice between renovated Victorians, sprawling ranch homes, stately colonials, or more modern architecture. Whether you’re looking for a bargain or a home in which to invest a fortune, you’re likely to see something you love in Oradell.

 

#1. Jersey City, Hudson County

Median home price: $458,800

Jersey City’s Manhattan views and rapidly increasing home prices are probably equally famous at this juncture. Jersey City’s median home prices jumped nearly a quarter in 2017, finally reaching the number #1 housing market slot earlier this year after holding strong at #2 for multiple quarters. Jersey City’s rich history, cultural diversity, and strong public transportation are highly appealing to buyers looking for a home in an urban location.

Are you looking to purchase NJ real estate in the near future? The towns we included here are obviously just the shortlist; there are many other really awesome towns in The Garden State that look promising for potential homebuyers on either end of the budgeting scale.

Summer is the Perfect Time to Buy Real Estate in New Jersey

real estate in new jersey

Have you recently taken a critical look at your current home and decided that it may be time to move? Maybe you or your spouse received a promotion or were asked to move locations for a job. Either way, are you thinking of buying a piece of land or a new home for you and your family? Many people want to know the best time of year to purchase real estate in New Jersey. We don’t have the perfect answer for you; there are so many variables that play into buying property. Fortunately, there are always homes up for sale, so it’s always best to wait until you find what you’re looking for, within the time span that you’re given.

We can tell you that if you’re looking for more options to look at and walk through, the best time is going to be spring and summer. Not many people enjoy checking out a future home in the bone-chilling cold. The thought is that once winter ends, people are itching to leave their old homes and find a new one. Here’s another thought: the early bird gets the worm. It’s best to start looking when there is still a slight chill in the air, and as it gets warmer and warmer, you’ll be seeing more and more homes go on the market.

real estate in new jersey


These days, technology can be your best friend when searching for real estate.


Hop online and you’ll find countless possibilities just by clicking on one real estate company’s website. We’ve found that online real estate searches peak in July in the state of New Jersey. People may have a little more time on their hands with no kids in school and not having to run in every direction for activities each evening. Watch out, though, because prospective home buyers are out in full force come summer months, so you’ll have competition!

Because of the added competition of additional potential home buyers, you run the risk of having any offer that you make being topped by other home buyers or simply just getting lost in the home-buying frenzy. Get out there early, take the appropriate and necessary time to find what you’re looking for, and make an offer.

If you’re planning on pulling a double act, that is, selling and buying a new home, take advantage of the summer months. Since there are more homes on the market, it’s easier to do both the selling and buying in a shorter time frame. For people that definitely need to sell their current house before buying a new one, there will be more prospective buyers during the golden season. We don’t want you to get cornered into having two mortgages, so plan intelligently!real estate in new jerseyUltimately, though we suggest summer as the best time to buy real estate, it also depends on the buyer. One person’s needs are going to differ from another person’s, which will affect when someone can handle the added burden of house shopping. For example, financial statuses are one of the biggest factors in determining the best time to buy. It’s crucial that you ensure that you have enough money to effectively traverse the home-buying process. Another important factor to consider is your personal schedule. If you can’t take off work during the summer, wait until there is a lull to pursue real estate shopping. If, however, you decide that you want your kids to be part of this process, there’s no question that summer break is the best time to shop.

Summer is smack dab in the middle of the most popular months to sell real estate. Don’t sweat it though, find a professional that will guide you along. Before you know it, you’ll be stepping into your new home and letting out a satisfied sigh of relief.

How Will Rising Interest Rates Affect the New Jersey Real Estate Market?

New Jersey real estate

Over the past ten years, real estate prices have fallen in New Jersey. That trend is slowly changing. In most areas of New Jersey, the home values have not reached the 2005-era peaks. While it is feared that current federal tax reforms will have a negative impact on home values in New Jersey, there are many scholars, such as Monmouth’s Professor Peter Reinhart, who claim that the positive impacts will outweigh the negative outcomes.

The current Congressional tax reform will have a major impact on the housing market in New Jersey. For instance, state and local taxes (SALT) will involve a new $10,000 tax cap on deductions. This is much less of a price for taxpayers, because, in 2015, New Jersey citizens paid $17,850. The deduction cap on interest on new home mortgages decreased from $1,000,000 to $750,000 of principal. This also involved elimination of interest deduction for home equity mortgages. Homeowners who have existing mortgages can still deduct interest.

There are several negative impacts on the New Jersey housing market that are due to rising interest rates. Existing homeowners with a mortgage over $750,000 and lower than $1,000,000 will probably not decide to relocate if a larger mortgage would be required by moving to a new home. This would mean that the low inventory of availability of homes for sale would stay low. Thus, there would be a diminished ability for those in the market to buy a home to receive tax benefits of property tax and interest deductions. This would result in more of the buying market to rent, versus purchase a home, and existing homeowners who would typically upgrade to a larger home would not be able to afford to do so. With a decreased number of home buyers starting out in the market, in conjunction with a decreased number of homes for sale, less overall transactions will likely occur.

New Jersey lawmakers can implement certain policies that would help offset any potentially negative effects of the recently imposed tax laws. The New Jersey governor and legislature could possibly eliminate the $10,000 cap on local property tax deduction, which would offer a reprieve to those who pay more than that on their property taxes. There is a controversial approach which involves viewing the overall New Jersey tax structure as a whole, and relates to shifting away from income and property taxes and implementing business or sales taxes that are not already deductible to ‘individual homeowners.’ Some other available alternatives to decrease the burden on homeowners include municipal consolidation, cost cutting, and cost sharing. This would increase property tax revenues in the United States.

There are some positive outcomes from the tax reforms related to housing and the rising interest rates. One example of a positive outcome involves the increase in demand for the rental market. Another example involves the upgrades and improvements landlords will do to already existing apartment communities, given the increase in demand for available rental properties. Furthermore, a lower tax rate for pass-through entities and corporations would potentially lead to greater profits which could be reinvested in housing.  Companies which purchased detached, single-family homes to utilize as rental properties after the recession might experience an increase in demand as there is a decrease in the benefits of home ownership.