NEED ADVICE ABOUT CONDO IN NEWARK NEW JERSEY!!!!

[Anne Williams]

Hello,

   I am looking to purchase a condo in Newark, New Jersey in the Springfield Belmont area. There are two that I am considering. One needs major work and the asking price is in the low 100s while the other is in better condition but the asking price is $170,000. I don't want to pay too much being that I am not totally familiar with the area.  I've seen condos that were sold in the low 100s in that area so I'm not totally sure why they are asking that much.. Both properties will need some renovation either way...but the one at $170 is at least move in ready. 

I would love to try to get the cheaper one at a lower price and do a full renovation which would allow me to custom the unit as I want but I'm resistant because I've heard horror stories from people who did renovation loans where it took a ridiculously long time or the quality of the final work was poor.  Anyways, In brief can somebody who is familiar with this area tell me what is the market prices for those condos and what would be a smart starting offer for a condo going for $170,000 there? I plan to do a conventional loan by the way....

[Dan Barli]

Hi @Anne Williams I would start off by cautioning you with investing in Newark, given that you're not familiar with the area. Newark is a very diverse city with pockets that can be good and pockets that can be very bad. I would recommend you connect with a local realtor who knows Newark very well to find out the values of the properties and can give you insight.

Regarding why one seller is asking "too much" should be irrelevant. Sellers always want more money and many times don't even realize what the value of their property is. Your job as an investor is to run the numbers and make sure the deal works for YOU. If the seller doesn't come off their price, then move on to the next deal.