NEED ADVICE ABOUT CONDO IN NEWARK NEW JERSEY!!!!

9 Replies

Hello,

   I am looking to purchase a condo in Newark, New Jersey in the Springfield Belmont area. There are two that I am considering. One needs major work and the asking price is in the low 100s while the other is in better condition but the asking price is $170,000. I don't want to pay too much being that I am not totally familiar with the area.  I've seen condos that were sold in the low 100s in that area so I'm not totally sure why they are asking that much.. Both properties will need some renovation either way...but the one at $170 is at least move in ready. 

I would love to try to get the cheaper one at a lower price and do a full renovation which would allow me to custom the unit as I want but I'm resistant because I've heard horror stories from people who did renovation loans where it took a ridiculously long time or the quality of the final work was poor.  Anyways, In brief can somebody who is familiar with this area tell me what is the market prices for those condos and what would be a smart starting offer for a condo going for $170,000 there? I plan to do a conventional loan by the way....

Though I haven't anything (yet) in Newark; one would start with CMA for both To understand realistic value. You can ask the agent or seller/wholesaler for comparable within blocks because real estate is location, location, location!

Good luck!

Hi @Anne Williams I would start off by cautioning you with investing in Newark, given that you're not familiar with the area. Newark is a very diverse city with pockets that can be good and pockets that can be very bad. I would recommend you connect with a local realtor who knows Newark very well to find out the values of the properties and can give you insight.

Regarding why one seller is asking "too much" should be irrelevant. Sellers always want more money and many times don't even realize what the value of their property is. Your job as an investor is to run the numbers and make sure the deal works for YOU. If the seller doesn't come off their price, then move on to the next deal.

Originally posted by @Tarik Turner :

I have an associate trying to sell one in Jersey City for below market price if interested I can make a connection 

 Yes, I would be interested! 

This is a question that you would sit down and ask the agent that you are working with. My suggestion to you is to work alongside ONE agent and tell them what exactly you are looking for so you both can be on the same page.

To answer you question about whether $170k is a good price that agent will help you by doing a CMA on the property before you put in an offer to give you an idea on what the property is currently worth and the values of the similar properties around it.

@Noel Challenger , My concern with the property is that the owners bought it last year and they are now asking 50,000 more for it... From looking at comps in the area that was sent to me...all properties have been selling in the low 100,00 which is what they bought it for...they have made minimal upgrades and I would still need to do a lot of cosmetic work to make it worthwhile...so Im not sure why there is such an increase and its supposedly went into contract twice and the deal fell through both times!

Repairs on a condo shouldn't require much. Your biggest challenge might be to find a qualified and honest contractor who won't do their best to rip you off. or somehow delay your project because then busy expending resources on bigger and more profitable jobs this while already holding on to the initial payment you gave them. A Key will be finding the right contractor you can trust and making sure you don't pay for work not yet done. Only pay for work that has been completed. and not familiar with the Springfield Belmont area at all (where is that?). Even though I grew up there and spent 90% of my life there. LOL. I guess I'll chalk it up to the Christopher Columbus's in the field who are constantly discovering and naming new neighborhoods.

@Ibrahim Hughes , so you feel its worthwhile to take the risk and rehab the cheaper condo? The loan officer at the bank says he can recommend a couple of contractors who have done 203k loans before who are already approved and will understand the process...