This house was destined to grab attention.
It’s an eight bedroom, two-family property located in Essex Fells, where there aren’t many multi-family houses. And that’s a lot of bedrooms for a two-family.
It includes a three-bedroom, one-bathroom unit on the ground floor and a five-bedroom, two-bathroom unit that occupies the second and third floors. It was listed March 18 for $829,000.
“The amount of traffic at the open houses was unbelievable,” said Donna Goode, the listing agent with Keller Williams NJ Metro Group. “I had over 40 groups.”
Goode listed the home on a Thursday and did open houses that Saturday and Sunday. “The offers started flying in,” she said, adding that she asked for highest and best offers the following Wednesday.
There were 15 offers in total. They were evenly split between potential buyers who wanted to own the home as an investment property and those who wanted to occupy it and rent one of the units.
The winning bidder, who will use it as an investment, was selected because he made the highest offer and had the best terms. It was an all cash transaction and could close quickly, she said.
The property closed April 26 for $1,051,000, that’s $222,000 above asking price.
“It’s a sellers market and buyers, even with the higher interest rates, are willing to come forth with great offers,” said Goode, who has been in the business for 20 years. “I’ve been in all types of markets and since the pandemic, it’s just exploded.”
The median price of a single family home in Essex Fells was $2,850,000 in March, according to New Jersey Realtors. That’s up nearly 43% from a year ago when the median sales price was $1,995,000.
Sales of two- to four-family houses in New Jersey increased 10% in 2023, according to the Otteau Group. Sales of single family properties declined 22%, according to New Jersey Realtors.
“The increase in sales of two-, three- and four-family homes is because of the prohibitively high cost of owning a home,” said Jeffrey Otteau, a NJ-based real estate economist and head of the Otteau Group. “If you can’t quite afford to make the jump from living in an apartment to buying your own home, purchasing a two-family home gives you a hybrid solution ... you have a tenant helping you to afford it.”
Goode said she knew the house would attract attention, but she was surprised by how much and never imagined it would sell for that much over the asking price.
“I expected a brisk amount of traffic because it’s a unique property in a town traditionally known for larger, mansion homes,” she said. “There is a very limited selection of multi-family homes in Essex Fells. It’s really rare to find one.”
The property is also in a great location, Goode said. It’s in walking distance to downtown Caldwell, a park and schools, which attracted buyers from densely populated areas like Brooklyn and Queens, she said.
The first level unit currently rents for $3,200. The second unit occupying the second and third floors has a long-term tenant who was paying $3,200, which Goode said is under market value. It could rent for $4,000 to $4,500 per month, she said.
The former owner, an investor, decided to list the home for sale because the upstairs tenant bought a house and was moving out.
“The market is still good, so he said lets list it,” she said.
Are you an agent, buyer or seller who is active in this changing market? Do you have tips about New Jersey’s real estate market? Unusual listings? Let us know.
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Stories by Allison Pries
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Allison Pries may be reached at apries@njadvancemedia.com.