The Garden State has the highest percentage of foreclosures among mortgaged homes in the country, according to CoreLogic. Another tough statistic to swallow: New Jersey is the state that takes the longest to complete a foreclosure, just over 3 years. Not all parts of NJ see the same tough housing market, but as a whole, the market isn’t the best for sellers. In fact, real estate experts say that if you want to buy a home, head East. That’s where the buyers market is.
While things are getting better for sellers, NJ remains a buyers market. So, if you’re looking to buy, this post is for you. With so many foreclosures in NJ, it’s likely that you’ll come across a few that are for sale that you really like. Don’t be dissuaded by the negative perception of buying a foreclosure. Sure, it does take longer than a traditional sale, but there are plenty of benefits, too.
With a foreclosure, you’re buying the home from the bank so it will be reduced in price. A lowered price means many good things: a lower down payment, less money brought to the table, a more affordable monthly payment and so forth. With a foreclosure, you could potentially land yourself a bigger, better home for the same price as a smaller, more modest home in a traditional sale.
One thing to think about: with so many forclosures in the NJ market, these properties are actually setting the market value. So, it’s possible that even a foreclosed property will be closer to fair market value than you think.
Many buyers won’t consider a foreclosed home because they don’t have time to wait and they prefer a clean and simple sale (not saying that foreclosures can’t be). Still, not every buyer considers a foreclosure, so keeping your options open means that you may compete against a smaller market and won’t have to place such high bids.
A foreclosed home is always sold at a discount compared to other properties in the area and will likely appreciate as soon as you set foot into it. And, imagine what a few fixer uppers can do for the place! Some buyers plan on living in their new home for the long term, but others take the profit they make and use it to purchase something else.
Foreclosures aren’t for everyone, but if you have time, patience and some handiness skill, they are worth considering!