New Jersey’s cash-for-homes market

New Jersey’s appealing lifestyle, prime East Coast location, and relatively affordable homes in an eclectic mix of communities draw cash buyers to the state.

Cash buyers eye affordable South Jersey

With their proximity to New York City, higher-priced North New Jersey cities like Hoboken and Tenafly have long attracted homeowners who commute to the Big Apple. But since the pandemic, many former commuters now work from home. Seeking more space and affordability, they’re flocking to the burbs of western and southern New Jersey.

“South Jersey is considered part of metropolitan Philadelphia and has always had relatively lower home values than northern New Jersey,” explains Timothy Belko, a top-selling South New Jersey real estate agent.

“But with more people working from home, we’ve had an increase in home buyers and investors coming down from North Jersey. They can get a larger house for the same price, or sometimes even a lower price.”

Belko adds that investors looking for rental properties are snatching up duplexes in southern cities such as Pittman and Cherry Hill. “In this market, they’re going to get a better return on their investment down here than they would up north.”

Jersey ‘burbs and cities attract Big Apple cash buyers

New Jersey residents aren’t the only ones looking for more house for their money. Across the Hudson River in New York City, first-time buyers and others who are priced out of the Big Apple’s uber-expensive housing market are heading for the Garden State. So are Manhattanites who are no longer chained to office desks.

Different markets provide NJ house flipping opportunities

Lou Stojanovski, Chief Operating Officer of local house-buying company We Buy New Jersey Real Estate, says investors in the area don’t necessarily target specific areas or types of homes. His company buys houses throughout the state but tailors its strategies to four different market types categorized as A, B, C and D.

Here’s an overview of each one:

A: These houses are in higher-end communities like Somerset. In an A market neighborhood, investors might look for a single-story ranch home and add a second floor to increase the value. We Buy New Jersey Real Estate also looks for A market short-sales and land where they can build new homes.

B: This mid-range market includes houses in cookie-cutter neighborhoods with similar comps. B market houses are common in areas like North Brunswick, East Brunswick and Old Bridge Township. They’re usually in good shape and can be flipped quickly.

C: Because homes in C market neighborhoods vary widely in style and condition, they’re trickier to price and less desirable for flippers than A and B market properties. “You might see eight different types of homes on the same street, so the comps are very inconsistent,” explains Stojanovski.

D: Found in communities like Irving and Camden, these homes tend to be in very poor condition. Some investors may shy away from D market properties because they need extensive work and comps are low.