Knowledge is power – and negotiating for the best real estate deal starts with getting as much information as you can about the home you want to buy. Here are the top 4 questions to ask a home seller in New Jersey:
Why are they selling their home?
As a homebuyer in a competitive market like New Jersey, it’s best to gauge how much negotiation power you have on a potential property. A simple question like “Why are you selling this home?” can reveal how you can negotiate for the best deal possible.
For example, Bridgewater, NJ has a Redfin Compete Score of 74 (as of June 2022), which means that the area is very competitive. Homes here tend to get multiple offers, with some selling for 5 to 10% above list price.
Understanding how motivated the seller is can help you make your offer stand out, such as by waiving contingencies or agreeing to a faster closing date.
How long has the home been on the market?
Check the length of time the home has been on the market. From March to June 2022, New Jersey homes for sale spent a median of 30 to 40 days on the market, with 55% to 66.8% of homes selling above list price.
If the home you’re eyeing has been listed longer than the average period, that may mean the property is priced too high, causing other buyers to hesitate in making an offer. While you should also be wary about the property, there’s a strong chance the seller is open to negotiating the price and other terms to your favor.
What was the home’s previous sale price?
In Somerset County, the average home value in the past five years rose from $310,000 to $458,000 – a 47.7% increase. Knowing how much the seller bought the home for can help you determine if the property’s – and the neighborhood’s –value appreciation is at par with the rest of the county. This can help you evaluate if the home will give you good returns should you decide to sell in the future.
Moreover, if the seller bought the home at a price lower than the current market value, this may mean you have room to negotiate for a lower selling price.
Have there been any major repairs or structural damages?
In New Jersey, home sellers are not legally required to fill out a disclosure form. However, the state’s courts do have rules about sellers’ obligations, which include:
- Guaranteeing that the home is fit for habitation
- Disclosing known, latent, and material defects
- Discussing representations and disclosures in the sales contract (e.g., right to sell the home, relevant warranties, etc.)
- Talking about intangible problems if asked (e.g., paranormal activity, deaths that occurred in the home, etc.)
All of these are usually included in the Standard Form of Seller’s Property Condition Disclosure Statement, which NJ Realtors advise sellers to prepare. Ask the seller to provide you with this form before entering a contract. In addition, inquire about any structural damages or major repairs done on the property, and make sure you’re satisfied with the answer. You can also ask about the age and condition of the property’s key components, such as the heating and cooling systems, plumbing, and electrical systems.
Work with real estate agents who not only have in-depth knowledge of New Jersey communities, but also the sharp negotiation skills needed to get you the best deal possible. Get in touch with our team at Pagnotta Homes by contacting 908.436.7947 or by sending us a message here.