the staff of the Ridgewood blog
Ridgewood NJ, when it comes to buying a new home, New Jersey homebuyers are proving to be some of the best negotiators in the country. A recent survey by real estate website Agent Advice found that Garden State residents are particularly adept at shaving significant dollars off the final asking price of their homes.
According to the survey, New Jersey buyers managed to negotiate an average discount of $19,634, representing a 3.9% reduction off the state’s average home price of $503,432. This places New Jersey second only to Alabama, where homebuyers achieved an average reduction of 4.3%.
Key Findings from the Survey
1. The Importance of Negotiation in Home Buying
The survey underscores how crucial negotiation is in the home buying process. Across the country, homebuyers managed to secure discounts on their property purchases, but the extent of savings varied by state. States like New Jersey and Alabama saw larger reductions compared to markets like Arizona, where homeowners only negotiated a modest 2.7% reduction, or roughly $11,520 in savings.
2. Regional Variations in Negotiation Success
Negotiation outcomes are significantly influenced by regional market conditions. While buyers in Alabama and New Jersey excelled at securing price cuts, those in highly competitive markets, such as California and Arizona, found less wiggle room due to high housing demand. Local economic factors and cultural attitudes toward negotiation also contributed to these differences.
3. Key Factors Influencing Negotiation
The condition of the property was the top factor influencing successful negotiations, with 30% of respondents citing it as the primary reason for securing a price reduction. Homes in need of repairs or upgrades gave buyers leverage to ask for a lower price. Market conditions also played a crucial role, with 23% of buyers noting that the timing of the market—whether it was a buyer’s or seller’s market—impacted their ability to negotiate.
4. Personal Negotiation Skills Matter
Interestingly, 20% of survey respondents attributed their negotiation success to their own skills. Buyers who were confident, prepared, and assertive in their approach often walked away with better deals. The ability to clearly communicate, identify leverage points, and strategically time offers were key components in achieving favorable outcomes.
5. Timing is Everything
The timing of negotiations played a crucial role in determining success. A majority of buyers (39%) began negotiating early in the process, during initial discussions with the seller or agent. Others waited until after a home inspection (31%) or an appraisal (17%) to begin negotiations. Delaying discussions until the final contract stage was less common but could work to a buyer’s advantage if the seller was eager to close.
6. Emotional and Psychological Factors
Negotiation is not just about money—it also involves emotional and psychological elements. More than 50% of respondents admitted to walking away from deals where the seller refused to negotiate. This highlights the emotional stakes involved, with buyers sometimes abandoning good opportunities due to frustration or impasse.
7. Challenges in Negotiations
Buyers faced several challenges during the negotiation process, including being “ghosted” by sellers or agents, which happened to 36% of respondents. Additionally, 37% suspected deceptive tactics during negotiations, emphasizing the need for transparency and professionalism in real estate transactions.
The Bottom Line: Preparation is Key
The survey results are clear—preparation is crucial for successful home price negotiations. Buyers need to stay informed about market conditions, assess the property thoroughly, and hone their negotiation skills to increase their chances of saving thousands on a home purchase. Whether in a hot market or dealing with a fixer-upper, knowing the right strategies can help make the most of your real estate investment.
With New Jersey buyers among the top negotiators, it pays to be prepared when navigating the state’s competitive housing market.
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Maybe the ”average’ home in NJ is overpriced by 3.9%
It obviously doesn’t apply in Ridgewood as many homes go for well over asking price.
3 homes sold within a block of mine and all went for significantly more than the asking price.