The NJ real estate market has certainly not been alone in being affected by the pandemic. In the Spring of 2020 we saw many homes that were listed pulled off the market and buyers staying put while there was a State mandated ‘stay in place’ order. The NJ real estate market went stagnant for a couple months.
Once the order was lifted there was an influx of buyers, not only who reside in NJ, but many residents of New York City who were looking to move out to the suburbs of NJ. This low inventory has been unprecedented, and as summer arrived more and more homes came back on the market. However the demand has not been met with the supply, and that is still the current status today.
In markets where I’ve seen bidding wars go $10,000-$20,000 over list price, I have now seen $50,000. When it comes to the appraisal, in some cases there have not been enough sales to support these high contract prices. Appraisals are based on the sales comparison approach which compares similar sales of properties to the property being appraised. When the market moves so fast, which is the current case, sales are not high enough to keep up with the demand. This can be problematic at times since it is difficult to support the high contract prices. What can appraisers do?
This is when the appraiser speaks to realtors to get more information on the current state of the market. The appraiser can also more heavily consider the theory of substitution, which states that the maximum value of a property usually is established by the cost of acquiring an equivalent substitute property that has the same use and design. Often times the appraiser will add properties that are under contract in the report. The appraiser can speak with the realtor of those properties to find out if they sold over list price and use those comparables as support for the current market conditions.
Switching gears slightly to show the national market from May 2019 to May 2020, the market has appreciated 4.8%. According to the chief economist from CoreLogic by the end of May 2021, the market will be down 6.6%.
While I don’t have a crystal ball, I personally don’t believe the NJ market will see a depreciation of 6% by May of 2021. Perhaps New York City will see a depreciation with people looking to leave but that only drives demand for this suburban market. My feeling is the NJ market will remain strong as demand is not only high, but interest rates are predicted to remain low. This only helps to drive demand.
If you are in need of a professional fair market value of a home in NJ, please give American Realty Appraisals a call at 908-233-1337.
Evan from American Realty Appraisals came out to our home last spring to conduct a home appraisal in support of our property tax appeal. He arrived promptly at the agreed time, was very professional and conducted a thorough walk through. We were very satisfied with the results of his appraisal - they were well-researched and accurately captured the features of the home. His appraisal proved to be a crucial element in a very successful tax appeal. I would gladly recommend his services to others.
I was extremely pleased in my experience with American Realty Appraisals. Evan was very knowledgeable and was happy to answer any questions I had. His appraisal was useful in our being able to successfully appeal our taxes. It was worth every penny. He also shared some suggestions on how to shore up insulation efficiency around the house. 5 Star service. thanks!
Evan was extremely helpful in our obtaining a favorable result from our tax appeal and I highly recommend his services
If you want the Do's and Dont's. I would say DO use Evan. It was a very smooth and easy process. He worked around my schedule. His turnaround time was very impressive. Price: He was in line with the other quotes I received. And you DON'T need to worry. I will recommend him and use him again
Prepared the documents to submit for a tax appeal and accompanied me to the tax appeal hearing to present my case. I have used American Realty Appraisals twice and have won my tax appeal each time.
I was appealing my real estate taxes and American Reality did an appraisal on my home. The appraisal went well and as a result the tax appeal was successful and our real estate taxes were lowered.
I was ignoring go through Tax appeal process because I thought it was so cumbersome with very little chance of winning. In this process, I used Evan for a tax appeal. Not only we won but it was very easy and simple process between him and the lawyer. I highly recommend to use Evan, he knows what he is doing!
The tax appeal through you and Lisa Walsh was successful, and you may use me as a reference any time in the future
Evan was great. He was instrumental in helping me to appropriately lower my taxes via an accurate appraisal. I highly recommend his services to anyone in need of an appraisal in NJ.
When the interest rates dropped last year, I decided that it was a good idea to refinance my mortgage. I was recommended to American Realty Appraisals by my mortgage company. They were affordable, expedient, and ultimately put together a very comprehensive report with figures, photos, and local comps. I would highly recommend them to anyone looking for a professional and honest appraisal company.
Evan and his team at American Realty Appraisals are simply the best at what they do. As a mortgage banking professional, I have worked with dozens of appraisal firms over the years and I continually return to American Realty Appraisals when I can for their expert advice and service. I would highly recommend them if you are an individual looking to have your home appraised, or a banker looking to add a high quality appraisal firm to your list of approved appraisers.
Before I went to list my home, I hired Evan at American Realty Appraisals. I wanted an unbiased opinion of what my home was worth. He provided a thorough report that gave me piece of mind and a leg to stand on when it comes time to negotiate. I was also pleased with how fast he turned the report around after the inspection.
I am an attorney in Westfield and I refer all of my clients to American Realty Appraisals. I have worked closely with Evan Siegel for the past two years and I have been impressed with his professionalism, integrity and expertise as an appraiser. Relying on his appraisals, I have been able to negotiate property tax reductions for numerous clients in Union County. I highly recommend American Realty Appraisals for all of your residential real estate appraisal needs.
ARA did a great job of handling my tax appeal. The guidance was spot on and the staff, specifically, Evan Siegel, was professional and knowledgeable. The outcome was excellent and I'm saving a good amount of money on my real estate taxes. Thanks ARA!!
I used Evan for a tax appeal project. It was a seamless operation between him and the lawyer. Zero blips, and we won.
Mr. Siegel performed an appraisal for my home for tax appeal purposes. He was very professional and helped me lower my taxes by 17%. I am quite satisfied with his work.
Highly recommend. Excellent service, professional, prompt. Great result