Realtor.com
A New Jersey home is garnering a lot of attention because of its $1 list price. It’s quite a bargain considering homes in Essex County had a median list price of $599,900 in May.
Brendan Da Silva tells Realtor.com® he’s always been confident about the local market and the home prices it commands.
“About a year or two ago, I was trying to convince some clients (to list for $1) that this will work, and no one wanted to,” says Da Silva, agent with The Da Silva Team in Newark, NJ. “One person thought I was trying to scam them.”
So, instead, he decided to take the chance on one of his properties, which he purchased in Newark for $300,000 and put about $125,000 into the renovation. Da Silva calls it a “social experiment.”
“It’s a lot of money,” says Da Silva. “I’m not rich. I definitely was nervous.”
The Newark home, built in 1945, is located in a quiet, suburban pocket of the bustling city that’s mostly known for Newark Liberty International Airport (which serves the New York City metro area). The median list price for the 07106 ZIP code is $444,500.
“Newark is a very amazing market,” says Da Silva. “Right now, a lot of people are buying not just to rent it out, but to move in. So we’re seeing a lot of demand here. I live here in Newark. My office is here in Newark.”
When the house flipper and real estate agent found this property and decided to turn it around—it was a no-brainer to see if he could make more than the average comp in the area.
(Realtor.com)
(Realtor.com)
What do you get for $1?
The Reynolds Place home has three bedrooms and 1.5 baths. It’s located on what’s described as the “last street in Newark.” One block over, the buyer will find themselves in South Orange—home to Seton Hall University.
“This is called the Ivy Hill section. It’s an unbelievable area. It’s a suburban as it gets. Beautiful homes, tight-knit community, all single families,” says Da Silva. “They have block parties, they have a community. They have a neighborhood association, the Eastern Parkway Neighborhood Association. They all look out for each other. It’s unbelievable.
“It’s probably the best location you could possibly dream of to raise young families or just to enjoy life.”
The newly renovated home has an updated bath, new kitchen with quartz countertops, two-car garage, and finished basement.
The listing does not include the square footage, but property records state the home is 1,750 square feet on a 4,901 square foot lot.
So far, DeSilva has received over 50 offers—some are well below the median home value for the neighborhood. But for the serious buyers, he’s anticipating a bidding war.
He explains that at least 50% of the potential buyers who came to his first and only open house last weekend were from Brooklyn or Queens.
“That really doesn’t matter what you list the house for,” says Da Silva. “All that matters is the market, and the market will always give you what you demand—what the market demands of the property, right?”
DeSilva encourages potential buyers to “bring your best offers,” because he plans to make a decision this week.
“Buyers are willing to put forth a competitive offer, despite the home’s current $1 listing price. This area still sees far fewer listings than pre-pandemic, suggesting buyers still face fierce competition to be in the area,” explains Hannah Jones, senior economic research analyst at Realtor.com.
“If the $1 price tag was instead reflecting an abandoned market, offers would likely be much lower. However, healthy offers for the $1 home suggest the surrounding market is strong and competitive for buyers.”
