Here..and Gone
Polished 2BR, 2BA in the heart of downtown had an accepted offer within a few days of list.

The Sienna
48 S. Park Street
Unit 418
Montclair, NJ 07042

Montclair Dominating NJ on Price Premiums Plus Buyers’ Tips

With sales premiums soaring, here’s what buyers and sellers need to know about the latest market dynamics.

Montclair and Glen Ridge Lead NJ in Sales Price Premiums

Sales prices consistently exceeded the asking price by 20% are rare across North Jersey. However, Montclair and Glen Ridge have stood out for their high price premiums. For instance, Ridgewood peaked over 20% earlier this year, while Maplewood reached 15% a few times.

In October, some high premiums in the “sweet spot” of the market have driven this trend. Three notable listings priced at $1 million sold for 38%, 50%, and even 71%(!) over asking price, reflecting intense buyer interest in this price range.

Buyer Agency and New Agreement Rules

Three months into the new buyer agency agreement rules, we’re seeing varied responses among sellers:

• The majority of Montclair sellers continue to offer commissions to buyers’ agents at traditional levels.
• Some sellers are offering partial cooperation on commissions.
• A few sellers are not offering any cooperation.

In October, we experienced a first: a closing where we received a commission from both the seller and the buyer. This dual commission represented the difference between the seller’s offer and the buyer’s agreement.

Tips for Buyers if the Seller Isn’t Offering Full Commission

If a seller isn’t offering commission consistent with your buyer agreement, consider these strategies:

• Lower Your Offer and Pay the Difference from Cash on Hand: Adjust your offer so you can pay yourself out of pocket for the agent commission.
• Request a Seller Credit at Closing: Ask the seller to cover your agent’s commission as a closing cost credit. You might consider increasing your offer by an equal amount to keep the net to the seller the same—note, though, that the home would need to appraise for this higher price.
• Increase Your Loan Amount to Cover Commission: If you lower your equity and raise the loan amount by the commission amount, it could work—just watch out for loan-to-value limits, as exceeding 80% may lead to added costs, such as PMI or higher interest rates.

Thanks for reading.

Best, Rich