Ridgewood, Glen Rock Real Estate on the Rebound

With greater confidence in the vitality of the economy, the real estate market in Ridgewood and Glen Rock is on an upswing, believes Al Donohue, Operating Principal at .

According to statistics from the New Jersey Multiple Listings Service (NJMLS), the early part of 2012 compares favorably to that of a year ago in both towns.

In the first two months of 2011, 32 homes in Ridgewood were sold. A year later, 40 homes have closed within the same time period. In Glen Rock, the story is much the same. Eleven homes were sold during the first two months, whereas 14 closed by the end of February 2012.

The price point, too, shows a marked difference.

Ridgewood homes have sold for a 29 percent higher average, at just over $727,000; Glen Rock checks in at a 27 percent bump, up to nearly $533,000. From 2011 to 2009, the median sold price in Ridgewood is down 0.5 percent and Glen Rock, 1.4 percent. Both had disappointing years in 2011, statistics show, with each municipality losing between $30,000-40,000 on the average home sold.

With the strong early showing in 2012, Donohue contends a resurgence may be taking place.

"I really feel like it's turned a corner and a lot of it has to do with the sentiment that's out there," Donohue said. "People are hearing that jobs are coming back, they're feeling a little more confident in the economy. Before, they were saying 'I can live with four kids in a three-bedroom because I don't know if I'll have a job in six months.'"

Top dollar homes closing

Those that may have been playing a waiting game, seeing if the economy will improve are now making their moves, Donohue says. It's particularly noticeable with upper-echelon homes, he said.

"You couldn't move the over $1 million homes a few years ago, now you're seeing multiple offers in many cases," he said. Of his multi-million listings that sold at the end of 2011, both closed near their listing price, he remarked.

Other good indicators the market is climbing steadily emerge in the interest in open house showings. "The interest and people looking at homes is back to 2006 levels," Donohue said, noting 2006 was really the height of the market.

Glen Rock, Ridgewood better weather downturn than neighbors

Some key characteristics in Ridgewood and Glen Rock somewhat insulate the communities from the collapse seen in neighboring towns, Donohue said.

Pointing to market guru Jeffrey Onteneau's research, as layoffs from large employers in New Jersey took hold and New York City became the job bearer, the more valued having strong public transit options into the city became.

There are other factors as well, he said. 

"In Ridgewood it's people wanting education. They're getting less house for their money so they can have the downtown, the train station, the school system," he said, contrasting it to Franklin Lakes.

With no downtown, limited public transportation options and fewer activities for families, despite a good school system the borough's luster is somewhat scratched. In short, it's not as practical an option for families on the move. And in North Jersey real estate, younger families are still the dominant buyers.

"People were more buying to get the biggest, showiest house they could in Franklin Lakes," he said, adding there was a greater rate of investment properties being constructed that just haven't retained expected value.

For those looking to sell the home, there are several simple do's and dont's, advises Donohue.

Selling? Do this:

Staging a home is a must, according to Donohue. "It used to be you had an advantage having a stager – they make your house look perfect to sell. Now it's no longer an advantage. You have to do it to get in the game because everybody else is doing it."

Even more critical in selling the home and quickly at its value is pricing, he said. These days, everyone searches online, about 90 percent looking for homes. Because websites force buyers to looking in incremental brackets of $50,000, many make the same mistake, he claims.

"The same person who's going to look at something at a house for $459,000 will look at one for $499,000," Donohue said. "But a lot of times when they have that hard stop at $500,000, they could be looking for houses for a year and never know your house at $509,000 exists."

It may sound strange, but dropping from $502,000 to $499,000 makes a greater difference than dropping from $499,000 to $459,000, he said.

On a related point, he said there's a big danger in overpricing a home to build in room to negotiate.

"There's less negotiation than people think," he said. "Homes wind up selling for relatively close for what they're listed at if they're priced it. By overinflating it, you end up helping comparables look like bargains."

Because prospective buyers' interest in homes can be unpredictable, Donohue advises having it be as available for showings as possible.

"The more available you make it, the more showings you'll find," he said, adding wall paper should always be removed and rooms painted in neutral colors.

Selling? Do not do:

Just don't make the mistake of thinking a complete remodeling of kitchens and bathrooms will bring in a better price.

"If you today put in a $50,000 kitchen, it's like going to the car dealer and driving a new one off the lot. It drops to $30,000 immediately," he said.