Teaneck Broker: Cash Buyers Hold Advantage in Bergen Housing Market

TEANECK, N.J. Buyers paying cash or bringing large down payments are closing on homes in Bergen County while those relying on mortgages are stretching to keep up, according to a local real estate broker. Nechama Polak, Broker of Record and Owner of V&N Group LLC at 1401 Palisade Avenue in Teaneck, said interest rates above 7% weigh on buyers who need substantial loans, while cash purchasers retain flexibility in the current market.

The gap shows up in monthly payments. On a $1 million purchase with a 30-year fixed mortgage at an illustrative rate of 7.4%, a larger down payment lowers the monthly payment by about $1,385, or roughly $16,600 a year. Those figures exclude property taxes and insurance. The comparison illustrates why two buyers eyeing the same house can reach very different conclusions about what it costs to own it.

Polak recalled buying her first home on Edgewood Avenue in Teaneck with her husband, on a street she said no one seemed to have heard of. She promised him they would eat tuna sandwiches every night "forever," if necessary, and skip dinners out. "I understand the sacrifices buyers are willing to make for a home of their own," Polak said. "Still, the monthly payment deserves as much consideration as the kitchen and the backyard."

Polak said her work now centers on finding homes her buyers both want and can afford. V&N Group can be reached at 201 826 8809.