The real estate investing market is hot and the competition is on fire in the Garden State! So hot, that some listings are getting more than 40 offers. Can you imagine more than 40 investors and end-users putting in their highest and best offer with no escalation clause? Oh, my! That’s what recently happened to my partner and me.
We have a list of 10-12 towns we are constantly scoping for properties and have researched. Until we met a new agent at an open house. Within a few days, she sent us the listing. We didn’t hesitate and ventured out into new territory (the numbers looked very promising).
We walked the subject property in this highly desirable area of Essex County, New Jersey. The raggedy house sat nicely on a tree lined street among well-maintained homes. The house was a full gut job with an estimated repair of $160,000. However, that did not deter us from making an offer way over asking of $403,000. The asking price was $329,000 with an after repair value (ARV) of $675,000 – $700,000). We knew this property would sell fast with the right touches. Plus, this suburban township also boasts one of the best school systems in the state as well as acres of green space, a great downtown area and proximity to NYC transit.
Our agent thought we had a solid offer. The terms were stellar compared to other offers we’ve made in the past. It’s very easy to get discouraged in this dog eat dog world. Sometimes you let your heart take over. There’s nothing wrong with wanting to land your first big deal but we need to stay strong and let the rejection roll off. It’s part of the business.
Happy Buying and Selling!
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