One of my main objectives is client focus and to that end educating my clients about new trends and opportunities in our NJ Midtown Direct community marketplace.
What I have been seeing lately is a trend to completely gut , renovate or tear down homes in many of the Midtown Direct communities including Short Hills, Summit, Chatham and Livingston, but on a smaller scale than what we’ve seen in previous years. The trend is towards smaller, high quality, with custom top of the line kitchens and baths, and high end finishes ranging from3,500 to 5,500 square feet in the $1.1 to under $2 million range. I’m getting calls from builders and investors every day looking for these types of opportunities and properties to build on – the demand here again is huge! The larger properties on 1/2 plus acres in Short Hills, Summit, or Chatham Township would command a home that is larger since the builders would have to pay more for the property, so expect to pay at least low $2 Million’s for something like this becuase they can most likely put a 7,000+ sq ft home on this type of property.
I listed brand new custom home for $1,499,000 in Chatham built by S. DeMarzo & Sons, a family owned construction company, headquartered in Madison, NJ, featuring superior crafted, new construction custom-built luxury homes. Modeled after their $2.5 million mansions, this smaller scale 4,800 SF colonial has been built to perfection in a neighborhood that is in the early stages of experiencing renovation and rejuvenation.
Another example of this recent trend is a home I just sold in Short Hills, which was a renovation in a neighborhood where homes are in the entry to mid range, with great walk to town & train location. This 2200 sq ft home was expanded to about 4500 sq ft and the list price was 1.495M. The trade off for buyers in this price range tends to be older larger homes that need some renovation, or brand spanking new but in the 4500 sq ft range.
For the first time in four years, we are experiencing those old familiar bidding wars for these types of properties. My Brantwood Drive listing, on the north side of Summit just sold to a builder for $101k over list price! This was on 1/3 of an acre, so again, the house won’t be a huge McMansion and the price will be in a more affordable range because of it.
We are representing quite a few builders who are looking for properties to renovate and expand or tear down. The more work it needs the better. It just has to be in a quiet location and have a flat rear yard. If you know anyone thinking about moving who’s home fits the bill, please let me know.