Foreclosures Listings Contain More New Jersey Luxury Homes- By: John Cutts
Foreclosure listings in New Jersey are growing by the day. Currently, a number of them contain foreclosed luxury homes. One notable foreclosed luxury home scheduled to be auctioned off this month is the Froh Heim mansion located at the Far Hills estate.
The Mediterranean-style mansion was placed on the market last year for about $8.9 million. After being on the market for some time, the mansion will be finally auctioned off to the highest bidder this month.
According to industry experts, auctions have become a popular way to unload properties. However, most of the properties sold at auctions are unsold condominiums and foreclosure houses.
Auctioneers are expecting a surge of luxury homes at auctions in New Jersey as owners try to entice prospective buyers. Similarly, industry experts are anticipating an increase of about 30 to 40 percent in the number of luxury homes going into foreclosures listings next year.
The Froh Heim was built sometime in the 1920s by a prominent family of stockbrokers and bankers. It will be auctioned off with no reserve price or minimum bid. This means that the seven-bedroom mansion could sell from $1 to $10 million or more.
The mansion was acquired by the Heritage Premiere Properties in October 2007 for $2.1 million. It spent over $1 million for the renovation of the mansion. Heritage Premiere Vice President Jody Jorgensen said that company has reduced its sale price several times until it settled for $5.5 million.
She said that the current housing market conditions had made difficult for the company to find an interested buyer. Twice the property received an offer of over $6 million but the deal failed to push through.
Statewide, inventory of homes for sale on the market is enough to last for nine months compared with the six-month period in a normal housing market. Market data showed that the supply of luxury properties listed for as much as $2.5 million has increased double that of the state average.
With properties priced over $2.5 million, the number is three times higher than the state average. Industry experts said that values of homes are determined by prices of neighboring properties. But with luxury properties on foreclosure listings, the values are difficult to determine because of the amenities. One home may have a movie theater or a golf course while another may have a hot tub that could accommodate 15 people.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.