Saturday, February 28, 2015

Jersey City Hoboken Real Estate Market Recap 2-27-15

Great news.The parking garage at 700 Grove is finally open after being damaged by Hurricane Sandy. This means that the time to get into 700 Grove, and nearby Zephyr Lofts (recently FHA approved), two buildings which remain deep-value, is now!

The Hoboken and Jersey City market remains super tight and ultra competitive, with low inventory forcing almost every desirable home to a multiple bidding situation. But a quick commute to Manhattan and prices still below outer boroughs such as Brooklyn mean buyers can still find a great lifestyle at a good value relative to neighboring areas.

Friday, February 20, 2015

Jersey City and Hoboken Real Estate Market Recap: Feb 20, 2015

For families looking for a single family, I would highly recommend 208 5th St. Listed at $1.269MM, this "20 foot wide home with four stories of living across from Church Square park" could be a very beautiful 4 bedroom, 2.5 bath (plus a bonus finished basement) single family. I toured it with an investor client thinking it was a tear down/gut, and I was surprised to find it is currently habitable (someone lives there now). Sadly, according to the listing agent, only investors had seen the home so far. It needs work... quite a lot of it, but someone can own it and make it their own, spectacular home. In past several months, this is one of the best condition homes I have seen in this price point, under $1.3M. For buyers who need some help with renovations, I can guide you through the process, from zoning and architect recommendations, to contractors and designers. (Sqft clarification: the 3 floors above ground add up to 2100 sqft. The basement is finished, but post-Sandy, it is not supposed to be marketed as sale-able. However, because of that loss, owners have been able to apply for a variance to build another level (typically with set backs), which works as an option, with option value).

In condo news, three units came to the market at 415 Newark this week. This building stands to partially lose NYC views once the Hoboken Railyards redevelopment project gets underway and an up to 13 story residential building springs up across Observer Highway. Still, for the amenities, they are very reasonably priced compared to the competition.

In Jersey City, prices continue to hit new highs, especially in Paulus Hook, where non waterfront units are approaching $700/sqft. One such unit, which refused to rent for a month or so, was put up for sale and went into contract within the week (the listing agent is my colleague, and I recommended the owner update the appliances, the only change they made apart from the staging). Potential sellers: This goes to prove, the sale market is HOT, rental market not necessarily so, and small updates can result in big payouts. Do you really want to be a small landlord?

700 Grove has two minor price changes. After nearly 2.5 years, their parking garage is expected to reopen on Monday evening. Some lenders still will not finance the building. However, expect to see more listings in the building come to market.

Hoboken snapshot

Jersey City 07302 snapshot

Jersey City 07310 snapshot

Friday, February 6, 2015

Real Estate Weekly Recap: Feb 6, 2015

The 07030 and 07302 zipcodes remain HOT HOT HOT, with properties going under contract in record time. Buyers need to prepare themselves for tough competition and be ready to bid right away.

For first time homebuyers, there is a little studio at the Sky Club being offered as a foreclosure. It is currently first look Fannie Mae HomePath (available to owner occupants), and priced at a significant discount to another studio in the building. It would make a nice investment property as well, once the first look period expires.

Hoboken Weekly Activity Report

Jersey City (Downtown) Weekly Market Report

Jersey City (Newport) Weekly Market Report

The Amazing $354/sqft Waterfront Short Sale Condo in Shore Club Newport

A blink of the eye and the amazing $354/sqft waterfront condo in Shore Club Newport was under contract. Listed at $449,900, this 1270 sqft unit was priced way way too low (comparable sales were $850,000-$900,000), and it was a short sale.
Image courtesy: MLS Listing

The listing drew a near frenzy of activity, with over a dozen all-cash offers in place in less than 24 hours. The unit is now listed as “Under Contract.”

This listing came with the following caveat: “Subject to 3rd party approval Price may increase up to $150,000.00 to satisfy Multi Liens Buyer must be patient and understanding of the situation.”

As I do with any financially distressed property, I did a quick lien search and found that the sellers not only had mortgaged the property, but they had also unpaid property taxes (tax certificates had been sold to several parties), unpaid condo association dues, and to top it off, a lien from the IRS. I then added up all the liens, as well as any expected penalties from the delinquencies, which is some instances can be severe.

From a short sale buyer's standpoint, it is important to understand and calculate what you would be on the hook for.

It is also extremely important to evaluate whether a short sale would go through. The first step in this to to estimate if the bank indeed agrees that the seller has financial hardship is in unable to pay them back in full. The second step is to determine what selling price, below market value, would be acceptable to them. These steps need to be repeated for all the junior lien holders as well.

A majority of short sales fail because banks cannot agree on price and terms. In instances such as this, a debtor who is ABOVE the mortgage company, in this case IRS, the property tax lien holders (in reverse chronological order), and South Shore Condo Association, can each initiate a foreclosure process based on their available timeline, and in essence wipe out the junior lienholders, including the banks.

Will this short sale go through? Will one of the people who put in their offers yesterday win the lottery? Or will a wild card event like a foreclosure upset the apple cart?

Are you interested in buying a short sale or foreclosure? Talk to me, I am a Short Sale Foreclosure Resource certified Realtor, who can guide you in the process and maybe land you a deal of a life time.