It’s time for yet another episode of Price Reduced! For all the newcomers to this blog, Price Reduced! takes a good look at a handful of significant price reductions across Northern NJ. The purpose of this exercise is to serve as proof that the Northern New Jersey real estate market has long since been overvalued and has started the long hard decline back to the mean. These listings are in no way an endorsement by myself, nor do I believe they are a bargain or a value. Even reduced, I still believe these homes are still grossly overpriced. With that, the listings please!
Our winner by a longshot this week:
MLS# 2092591 – Mountainside, NJ
Original Price 1,100,000
Reduced Price 775,000 (29.5% Reduction)
(Not sure about this one, could be an error but certainly looks legit)
MLS# 2082700 – Montclair, NJ
Original Price 3,800,000
Reduced Price 2,950,000 (23.4% Reduction)
(This one is listed on the MLS twice, under both Cedar Grove and Montclair)
MLS# 2215549 – Bridgewater, NJ
Original Price 599,990
Reduced Price 459,990
MLS# 2110146 – Rahway, NJ
Original Price 225,000
Reduced Price 179,900 (20% Reduction)
MLS# 2211947 – Hillsborough, NJ
Original Price 564,900
Reduced Price 459,900 (17.7% Reduction)
MLS# 2111356 – Morristown, NJ
Original Price 549,000
Reduced Price 459,900 (16.2% Reduction)
MLS# 2107052 – Westfield, NJ
Original Price 1,750,000
Reduced Price 1,495,000 (14.6% Reduction)
MLS# 2065814 – Peapack, NJ
Original Price 5,500,000 (Originally 7 million dollars)
Reduced Price 4,700,000 (14.6% Reduction)
Listing Link
(If you win the mega millions jackpot tonite, I’d suggest buying this home)
MLS# 2105696 – Madison, NJ
Original Price 699,000
Reduced Price 599,000 (14.3% Reduction)
MLS# 2206532 – Sparta, NJ
Original Price 349,900
Reduced Price 300,000 (14.3% Reduction)
MLS# 2103335 – Clifton, NJ
Original Price 569,000 (Originally 649,000)
Reduced Price 519,000 (13.4% Reduction)
MLS# 2205636 – Montclair, NJ
Original Price 859,000
Reduced Price 749,900 (12.7% Reduction)
If you’d like to look up any of these listings, you can do so by doing an MLS# Search through realtor.com.
Caveat Emptor!
Grim
The Montclair house actually looks reasonable. Taxes are a pain, but the house looks to be a real classic old building.
Madison — the owner wanted $699 K and now wants $599 K for an as-is house on .5 acre ? Way overpriced.
The Gladstone/Peapack place — if the 50 acres it has are subdividable, this would be a bargain (but I’m sure they’re not).
Mountainside — the owner was originally hoping for $1.3 Million for a 3bed/2bath place ? The house may be nice from inside, but its still overpriced.
I agree about the Montclair home, it is a great looking home.
As a card carrying member of the National Trust for Historic Preservation these old homes call out to me. I’d rather live in a 150 year old 2 bedroom home than any new megabuck Toll or Pulte McMansion. There is a real lack of character and craftsmanship in the homes built today.
jb
wheeew!!!
thank goodness everyones favorite town of Maplewood didn’t make the list this week. ;-)
on a more serious note, I can’t think of any part (off the top of my head) of Mountainside where a 3 Bdrm/2 Bth house would command anywhere near 1 Mil, let alone over it. even the reduced price of 775K seems extremely aggressive IMO.
Grim,
I went a few open houses last Sunday in New Providence and Berkeley Height. There were 2 price-reduced houses. The details were given below. The important thing was those agents suggested that I bid below asking price. This is it. The slide has begun.
Between these 2 houses (4miles), I saw about another 8 for-sale sign with 4 of them hosting an open house that Sunday. I didn’t get to see them.
New Providence – One old cape house with 3 beds and 1.5 baths. Very old and small, the half bath was a joke. An old lady and 3 large dogs are living there. The place smells like dog urine. It was 499,999, it is 489,999 now. She said it is a good price at 489,999. She keeps saying the market is slow and good for buyers. I suspect she is hinting I can bid lower.
link here
Berkeley Heights – Beautiful 3 beds and 2.5 baths end unit town home. It was 629,999 (???) in spring. It is reduced to 499,999 now. The agent said I could probably get it at high 400k.
link here
chaotic child
The market sure is changing fast, I can’t wait to see the Q4 numbers. It won’t matter at that point, it’l be obvious the market is going downhill fast.
grim
That New Prov house should not be going for over 325k. it will def need a bunch of work, how were the surroudning houses? I love New Prov as a town for me to buy a house in post-bubble when I am ready to settle down.
There are some really expensive setions of Mountianside. There is no reason for 3bed 2bath to go for any where near 1 million dollars, but there are def places where there are pockets of million dollar homes there. I think mountianside is a great town, the only problem for me is that they go to Berkley Heights for highschool, which could prove to be a pain in the ass if you have kids there, since you will always be driving them fairly far.
Mabybe one weekend or slow day we should all post where in NNJ are your top 10 towns to live in Post-Bubble. It would be interesting to see where people from this blog are looking to live.
Can’t wait for the real markdowns to start.
Recently saw a house in East Hanover, “A Dump” asking $529k by realtor. Sat on market for at least 5 months. Was reduced down to a “Bargain” at $489k. Whooopeee.
Now I see it is for sale by owner.
HAHAHAHAHAHAHAHAHA
The house imo is worth NO more than $275k.
Shocking price drops coming soon.
The Corrupt real estate industry lead by Lereah the head cheerleader will be pumping and spinning the “positive” news.
HAHAHAHAHAHA
my friends parents are selling their house in East Hanover. It is a beautiful house, with a pool and nice yard. They are asking mid 700’s, but they know its a slow market and have said that they would take mid-low 600’s. They just put that price out there, so when someone offers 650k and they accept, the buyer feels like they are getting a deal, when in fact that house should not be going for more than 550k.
NJRESIDENT
i agree that Mountainside is a nice town with some high end areas, but a 3 bdrm/ 2 bth house (unless on a prime lot & even then…???) probably not going to sell anywhere near 1 MIL. maybe a town like Mountain Lakes or Tenafly, but i promise you not Mountainside.
didn’t realize that the H.S. is now Gov Livingston in Bearkley Heights? if so, big upgrade IMO from Dayton Regional in Springfield.
also, i would think they would have a bus for the students….no?
njresident286 said…
That New Prov house should not be going for over 325k. it will def need a bunch of work, how were the surroudning houses? I love New Prov as a town for me to buy a house in post-bubble when I am ready to settle down.
I would say it was a very nice area. The whole street of smaller old houses off Springfield Ave
Homeowners that have owned for 15-20 years will be able to significantly undercut anyone who has purchased in the past 5 years.
Basically, anyone who didn’t get swept up in the mania can accept a lower price without any risk, in fact, even with a huge cut in price many people will still get a handsome return.
I believe it will be these long-time homeowners will be setting the market prices in the upcoming years.
I really don’t care what anyone paid for a home, it’s irrelevant to me, I’ll offer what I think it’s worth. My offer won’t be an insult to someone who purchased 15 years ago, but it’ll be unthinkable to someone who purchased this year.
grim
The Mountainside place is still way overpriced even in a hot market even if both of these conditions are met
1) The house has lots of upgrades inside and out AND
2) The lot is one of the best in town (backs up to green acres, no neighbors close by).
For 775K, you can get much larger and better houses in New Providence or Watchung. Even in Mountain Lakes, 775K is high for a 3bed/2bath
Why is the Montclair place priced at $750K ? The house looks like a mansion and has a large lot. The reason is that its in a flood area. When looking at a house (post bubble or not), always ask if the house is in a flood area especially if its near a stream or in a town known to have floods. If the owner claims not to know, go to http://www.floodsmart.gov and type in the address of the place. The website will tell you if its in a flood zone or not. Another sign of being in a flood zone is absence of basement (although this house has one). If you really want to make a serious offer on such a place, go to the township or county office and get more data on that lot.
Grim — I think its important to know what someone paid for a house in the last few years. That gives us an idea of the kind of markup they’re asking for.
Gravity –
Mountainside students do get bused to G.L. in Berkley Heights.
By the way, that $749.9 house in Montclair was originally being sold by the owner at $975k. Then they brought in the agent and lowered the price to $859k. It is a grand house that needs work but most of the bathrooms are original 1900s era, rather than a tacky 60s redo. House is right next to Montclair High.
My personal favorite is a 3/2 ranch located in Caldwell. It sits on a dead end street where many college students park and the side yard includes a view of townhomes.
It was listed in late August for $825k, reduced to $750k the following weekend, and is now on the market for $650k where it has been for the last two months. Reduced a mere $175k….and IMHO it’s still overpriced.