On August 1, 2024, the NJ Real Estate Consumer Protection Enhancement Act went into effect. While this has brought some changes to whether buyers or sellers pay realtor fees, as well as new mandatory seller disclosures, the good news is that these changes have not slowed down our robust housing market.
Since the beginning of August, 79 single-family homes with an average asking price of $915,000 went under contract after only being on the market for 17 days.[1]
Also, during that same period, 34 single-family homes sold for an average sales price of $953,000. This was 104% above the asking price. These homes went under contract after only 12 days on the market.[2]
During this time period, the housing market benefitted from a downward trend in mortgage interest rates. Fixed interest rates decreased an average of half a point, fluctuating between 6.3% - 6.6%.[3] Compared to 7% and above interest rates for most of the year, this increased the purchasing power of home buyers.[4] The decrease in mortgage interest rates continues to have a significant impact on the housing market since 80% of home buyers finance their home purchases.[5]
Of course, home buyers are always seeking the most value for the homes they purchase. The most popular features sought by today’s buyers continue to be hardwood floors, open floor plans, as well as kitchens with quartz counters, wine refrigerators, double ovens, walk-in pantries, baths with walk-in showers, and ensuite baths.[6] In addition, traditional, practical features, such as new landscaping, new HVAC systems, newer roofs, new appliances, and energy-saving technology, significantly boost home sales.[7]
With the passing of the NJ Real Estate Consumer Protection Enhancement Act in August, home sellers are now required to complete a detailed 22-page disclosure form. This must be provided to all prospective buyers. While completing the form may seem tedious, this is an excellent tool for sellers to showcase all the recent improvements made to their homes. Sellers should always keep in mind that home buyers in our housing market are always willing to pay for value. For most buyers, value means cost avoidance when the seller has installed new appliances and systems. As costs have continued to rise, buyers have become more practical. Improvements that used to be considered mundane now boost home sales as much, if not more, than glamourous features like recessed lighting, new counters and cabinetry. For example, whole house generators, replacement windows, new roofs, and landscape drainage systems provide comfort and protection for the property.
When a home seller does not have the time or money to make some of these improvements, some alternatives can add value to the home sale. For example, for approximately $600 – $700, a home seller can invest in a comprehensive home warranty that is transferable to the home buyer at closing. This warranty typically covers significant service charges or replacement costs for appliances, heating, air conditioning, plumbing and electrical problems. This type of protection, especially for first-time buyers, increases their comfort level when making the biggest purchase decision of their life.
For additional information please contact:
Diane Belcuore
Realtor ®
908-872-5473
dianebelcuore@optonline.net
NJ 5 STAR AWARD Winner 2014, 2015, 2016, 2017, 2018,2019,2020,2021
Accredited Staging Professional
