how is the market in riveredge, new jersey?

Asked by Jan9er, River Edge, NJ Mon Apr 30, 2012

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19
Lily C. Chen, , Westwood, NJ
Tue Oct 16, 2012
Dear Kang, people who move to New Jersey from other areas tend to consider the quality of life as well the tax burden in their search. It's true that for the most part, property taxes are notoriously higher in NJ than surrounding states, but there are factors such as quality schools, easier commute, and convenience to shopping and other attractions. Typically a town with higher tax burden may be spending a good portion of that in education, so it's worth it for families with children. Some towns with lower taxes may have decent schools too. You need to figure out what is important to you in evaluating towns and neighborhoods to live in.

That said, I know a few friends who also live in River Edge are feeling the burden of high property tax. If given a choice now they will probably not buy in River Edge. Or they may choose to rent if they need to be flexible in their housing. As a real estate investor, high property tax will be a deterrent because your cash flow will be next to nothing after paying mortgage, insurance, maintenance and taxes. And you can't jus hike the rent above the market rate just because you got a bigger tax bill this year.

High taxes absolutely affects house values. Just take Paramus and River Edge as an example since you're in Paramus. Even though the two towns are next to each other, the same house will go for higher price in Paramus than in River Edge. That's a fact. How much quality of life are you getting out of that tax you pay? You have to decide if it's worth it. For some people it is, and they will choose one town over another.

If you wish to discuss this further, or if you have other questions, feel free to contact me. Thanks!
1 vote
Kang, Home Buyer, Paramus, NJ
Thu Sep 13, 2012
I've been researching RE and Paramus for a couple of weeks. I must say, the high tax rate is a big issue and it certainly affects my decision of purchasing a home here. It is currently 3.05%, which is absolutely ridiculous. I don't understand why it can be so high, and if it keeps going up, how the heck does the local gov't expect people to afford it?
1 vote
Barbara Weis…, Agent, Tenafly, NJ
Mon Sep 10, 2012
Yes. It's still a Blue Ribbon district. There are 590 operating school districts in New Jersey. I would suggest that being within the top 20% is pretty darn good. What I tell my clients is that any school is more than the sum of it's statistics. You really have to investigate more than a SAT score to see if that particular district meets your own criteria.

If I were to take your suggestions seriously, I'd have to say that River Edge became, in 1 year, an inferior system. Is it reasonable or logical to think that any school district could have such a severe change either positively or negatively in 1 year? This is why you can't take just one measure of a school. If you look at several school surveys, you'll see that many districts have quite varied ratings.

I stand behind what I said - River Edge NJ has a very good school system and in Bergen County good school systems abound. I've lived in other parts of the US and believe me, our Bergen County schools are excellent choices.
1 vote
Barbara Weis…, Agent, Tenafly, NJ
Sat May 12, 2012
Wow - so much negativity. How about we look at the facts?

First of all, real estate is extremely local. Reports on broad areas are meaningless when anyone is thinking about buying a home. You must thoroughly investigate the local market. That NY metro report with it's 6.3% price decline has nothing to do with how the real estate market is in River Edge. At the same time, anyone who thinks that we're back in the days of 2004 is wrong too. This is a recovery that will be gaining ground on a subdued level.

According to the New Jersey MLS there are 54 homes for sale and 21 under contract in River Edge for a very strong 2.6 to 1 ratio. In any other market since I've been licensed (1982) this would reflect a roaring market. We don't have one because we are in a severe recession. Still, almost every town in Bergen County has fully recovered and some towns actually have slight price appreciation.

The truth is that it's not as rosey as some tell you but it's sure not as doom and gloom either. Again, you must look at the local market and dig deep in your examination of it - look at the town, the specific neighborhood, NJMLS data, etc. For example, a town can be doing great but your specific block might be impacted by a coming zoning change. Local issues were rightly mentioned as something to consider. On that note, River Edge has never been known for low taxes but with so many positives it's always been popular with buyers.

Anyway, my point is that the market in River Edge is doing very well and real estate is always extremely local. As for the crash in values, if you study history you will see these cycles repeatedly. They all came from cheap credit, irresponsible habits and greed. Remember studying the Great Depression? Wasn't it preceeded by the Roaring 20's? We never seem to learn, do we?
1 vote
Kang, Home Buyer, Paramus, NJ
Tue Oct 16, 2012
Does high property tax have a negative impact or house values in the long term? I assume, if the tax is so high, people wouldn't want to buy or pay high prices for the houses. Is this true in New Jersey in general?
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Thu Oct 11, 2012
So.............Jan9er........................you asked this back in April........did you make a decision on where you will move?

If you're still on the fence - perhaps, if your budget will allow, consider Millburn/Short Hills..........or any of the other charming towns along the MidTown Direct train line - 35ish min. into Penn Station...and top ranked schools, no matter whose rankings you're looking at!

Hey - just my 2 cents!.....

Best wishes no matter where you wind up!
0 votes
Ninfa Valella, Agent, Wilton, CT
Thu Oct 11, 2012
I know several people that live in River Edge. The high taxes are a major issue. Try Connecticut. Quaint New England towns with easy access to NYC on metro north. Depending on the town you could be living on 2 acres and have similar or even lower taxes than in River Edge. Proximity to Long Island Sound . CT can't be beat - location, beauty, great schools, easy commute . Need additional information contact me : ninfa.valella@cbmoves.com
0 votes
Lily C. Chen, , Westwood, NJ
Wed Sep 26, 2012
Dear Kang, I am a broker who live in River Edge and have been frustrated with the taxes as well. I have been looking for properties in recent months on behalf of my clients and friends, and have found some alternatives. Contact me if you would like to discuss further. Good luck!

Lily C. Chen
North Light Realty
201-293-0225
0 votes
Kang, Home Buyer, Paramus, NJ
Thu Sep 13, 2012
xx: I fully understand it and I'm very aware of it. That's why it's so frustrating for me to search for a good house. I asked earlier what other alternatives were out there, could you enlighten me? My wife and I both work in midtown, so commute is also very important to us. Thanks!
0 votes
xx, Home Buyer, 07661
Thu Sep 13, 2012
Kang: Rivere Edge has one of the highest tax burdens in Bergen county. Repeat one of the highest! There are other alternatives out there, better value, lower taxes, and better or at least equal to schools than in River Edge.
0 votes
xx, Home Buyer, 07661
Thu Sep 13, 2012
Barbara: Couple of points. First of all the Blue Ribbon status dates all the way back to 1998. It is not something that schools can recertify every year. Second, you must surely concede that falling 77 spots in 2 years (not one year as you say) could be indicative that something is not right. If nothing else it is a public relations disaster for both towns. It would have been far better for River Dell to have been in the top 50 or 60 and than fall 20 or 30 spots that could have been explained away, or but dropping from 27 to 104 cannot be spun away even by a Realtor. Again dropping from 27 to 104 cannot be spun away.

Realtors and I know this for a fact, have been using the NJ Monthly School Rankings 2010 numbers as bragging rights for the two towns that make up the district. Are you and the other Realtors going to boast that River Dell ranks 104 on the list! I don't think so. The nonsense that the high taxes in both towns is justified by how supposedly great the schools based on the NJ Monthly Rankings is no longer applicable.

Finally the NJ Monthly article demonstrates that there are other towns out there with lower taxes whose schools are better at least according to the reankings in the magazine, or as good.
0 votes
xx, Home Buyer, 07661
Mon Sep 10, 2012
Barbara: Well maybe now that the NJ Monthly Rankings for the states best High Schools have come out, that will change. A drop from 27 to 104!!! 77 spots. Whwther these rankings mena any thing or not is debateable. But home buyers but great emphasis on these rankings. And so do you Realtors. Are you really going to continue to market houses with the taglines of award winning schools, and top notch RIver Dell schools, and still have credibility?
0 votes
Hi, we are a young couple looking for our first home. We both work in midtown, and after comparing surrounding areas, we narrowed down to Bergen county, specifically RE and Paramus. You said there are better alternatives, can you kindly name a few? Thanks!
Flag Thu Sep 13, 2012
Barbara Weis…, Agent, Tenafly, NJ
Fri Jun 1, 2012
Sorry you feel that way but it's a fact that River Edge continues to be an extremely sought after location. Taxes in River Edge are not among the lowest in Bergen County but that has not diminished it's popularity. I was at a closing yesterday with a young couple who are thrilled to get a home in River Edge and the taxes did not dissuade them; they knew they were higher than other towns they looked at but they were also the same as other towns they looked at.

The economic collapse this time around is global and is far more complex than what we had in the early 1990's. You're right - it is much worse in many ways and it's going to last a lot longer. My view on this is that it's also a function of the loss of our manufacturing which has been going on since the late 1960's. You can't fix a problem that's been occurring and not attended to for about 50 years in a few. Many trade agreements that have the US in a negative position were borne out of an attitude of fairness after World War II when the US was the only super power standing and we wanted the rest of the world to rebuild. So some of the problems we have today came from events that are nearly 70 years ago.

On the current collapse - I had no idea as to the severity of the sub prime crisis. Frankly, I don't know anyone who did but I do remember Ben Bernanke telling Congress that it would have hardly any effect on our economy and the real estate market in May 2008 and on June 1st credit stopped. I watched that hearing when he spoke on TV while I was working on my laptop. If he's telling me things are going to OK who am I to doubt it?

We could go on and debate this but I'm working in the market every day. River Edge is a great place to live for many people and a sought after location in the real estate market. Those are the facts. Again, I'm sorry you feel differently.
0 votes
xx, Home Buyer, 07661
Thu May 31, 2012
Barbara: Actually River Edge prior to the reckless spending referendums over the last 10 years was always known for reasonable taxes and good schools. I am a long time resident so I know. Now we have one of the highest property taxes in Bergen Co.

In addition most of the buyers that are buying are probably first time buyers and have no idea what is going on in the town.

Finally we never had the run in prices that we had during the real estate bubble as lending standards were thrown out the window. The last run up in the late 80's was nothing compared to this collapse.

As far as River Edge goes, I have persuaded one family member and one friend of the family not to buy in town. The taxes are insane, and there are better alternatives out there.
0 votes
xx, Home Buyer, 07661
Fri May 11, 2012
Oh I am not angry. i just like to get the facts out there. And I am an owner, and have rental property as well. That being said my job is to stop the reckless cheer leading from your industry which has done so much to destroy the economy. Your former head cheerleader David Lereah admitted as much since he left your unregulated unprofessional conflict ridden industry. As far as burying any stance I might have on any subject, it would never happen. I will take my Harvard MBA up against your Realtor license any day,

4% interest rate on a declining investment, who cares, as per your own NAR prices in the NY metropolitan area which of course as you know includes north Jersey are down 6.3% in the first quarter of 2012.

Anyone who bought in the first quarter of 2012, is already out money. Than of course throw in out of control property taxes, and what a wonderful investment it truly is.

A house is consumption which offers a tax benefit to many, which may or may not make a profit for the homeowner after 30 years. since the average American does not stay in a house that long, the investment potential is quite limited. Even of one does, it would be a profit after 30 years of property taxes maintenance etc, and that is factoring in the potential tax benefits. Again not my idea of a wonderful investment.

And again encouraging people to use their houses as a funding too for college etc, is simply reckless.

So buyers if you are in the market, this is your opportunity to bid hard out there. Many sellers are still asking ridiculous prices for old unmaintained homes with ugly yearly tax bills. Don't fall for the Realtor spin, bid hard, don't worry about "insulting the seller", and if they do not accept your bid, then walk away.
0 votes
xx, Home Buyer, 07661
Thu May 3, 2012
If I borrow mortgage money @4.00, and the price of the asset is falling, or flat, how is that an investment? In addition a buyer is than paying 10 to 12k a year or more in property taxes? Again how is that an investment It is consumption that offers a tax benefit to many, with the hope that perhaps at some point in the future it will be worth more than a buyer paid for it. Factoring in the interest cost , property taxes, and maintenance. Treating it as in investment went a long way to creating the bubble mess. Buy now or be priced out forever as Realtors used to say

Advising people to view a house as a means to fund college or their retirement is reckless, but I am not surprised that you are spouting that nonsense. Anyhow nice day to you as well.
0 votes
xx, Home Buyer, 07661
Thu May 3, 2012
Brian: Define very well? Even people who did not buy in the bubble are still down from where they thought they were. Quite a shock for many to think at the peak their house was worth 500k and now is worth no more than 400k, or less.

I am not saying your numbers are fluff, simply that they just reflect people currently buying, who in most cases have no idea what is going on in town. If they did, I would say more than a few would rethink their decision. Also you make the mistake in referring to real estate as an investment, which it is not, it is consumption Anyone buying 10 year treasuries 4 years ago, would have made a huge return, any one who purchased real estate 4 years ago is down.

RE No has one of the highest ( Believe 3rd) in Bergen County, does not bode well for the first time home buyer looking at a starter house with 12k a year in property taxes. The reassessment issue will not be straightened out as you say, but rather tinkered with. The town still has to raise the monies it needs to fund it's operations, and large debt load.

As well we still have the funding battle with Oradell over the schools, all in all not good news for River Edge or it's property values. This is the information that first time buyers need before making a commitment to purchase here.
0 votes
xx, Home Buyer, 07661
Thu May 3, 2012
The market in River Edge continues to decline in price, the results of the continuing effects from the collapse of the houisng bubble, and one of the highest property taxes in Bergen County. Prices in RIver Edge are down about 25% from peak bubble prices.

In addition the continued funding battle with Oradell over the school funding, is causing hesitacny on the part of informed buyers. Next key hearing date regarding that battle is Juky 26..

Also the recent town reassessment has caused an uproar among the population. This information of course will not be disclosed by realtors, but this is what is really goining on in River Edge

If you want this area than you are better off sticking with Oradell.
0 votes
Barbara Ostr…, Agent, Closter, NJ
Mon Apr 30, 2012
In a nutshell, the market is HOPPING! Our office is one of the top agencies in the area servicing the Oradell/River Edge market, and we are doing boom business this spring! Continued low mortgage rates plus well-priced homes in a lovely community such as yours is a winning combination. If you need a market analysis on your home, please give me a call -- I would be happy to help you! If you are looking for real estate in Bergen County, I can put my 28 years of experience to work for you!
My best,
Barbara Ostroth
Coldwell Banker Residential RE
537 Kinderkamack Rd, Oradell
201-262-6600 office
201-965-3105 cell
http://www.BarbaraOstroth.com
0 votes
Dear Barbara; your information is self-seeking and not an answer, just an advertisement for you and your years of selling. RE/Oradell sell themselves, you just match-up the seller and buyer. To claim you are a top agency is spurious.
Flag Sat May 5, 2012
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