Investors are actively buying older homes across Essex County, New Jersey, either to renovate and resell or to tear down and build new. For a longtime owner facing a list of repairs, a quick cash offer can look like the easy way out. Mark Slade of Mark Slade Homes says the gap between that offer and what the same home could sell for after modest work is often larger than owners realize.
He and his business partner, MaryCeu Nunes, regularly help owners weigh the two paths. Here is how Slade approaches the decision. They market their clients’ listings via their proprietary and trademarked SMART RE-SULTS™ Listing System, and in 2026 were able to achieve almost a 50% Over Asking Sale Price for one of their sellers.
Why Investors Are Watching Larger Lots
Part of the investor interest comes down to land. Every town has a zoning ordinance that sets a minimum lot size. In many local towns that minimum is two-tenths of an acre, sometimes 0.15. In more affluent towns it can be two or three acres.
“If the property is more than twice the minimum, then you have a candidate for subdivision,” Slade says. Even when the existing house sits in the middle of the lot, tearing it down and building two homes can still make financial sense for an investor.
He points to a double lot in Maplewood that sold last year for roughly $700,000 to $800,000 with a rundown house on it. The buyer built two new homes that each sold for about $2 million. Slade estimates a new home of that size costs at least $750,000 to build today, putting the total outlay around $2.3 million against roughly $4 million in sales.
That math explains the demand, and also the growing friction in some towns. Neighbors who once had space between houses now find new construction much closer, and some residents object to older homes being replaced. Slade sees it as a familiar pattern: as an area grows more desirable and prices rise, the land becomes increasingly more valuable and therefore, subdivision becomes the way to get the most value from the land. It is important to note that Slade isn’t endorsing this “can’t fight city hall” trend with property values having increased so much in the past 10 years.
If your lot is large, a conversation with your town’s zoning officer before accepting any offer can tell you whether an investor sees something you do not. And, equally as important, having a consultation with an area Realtor, would also be highly recommended so all of the options can be presented to someone so they can make a more informed decision.
What an As-Is Investor Offer Usually Means
For homes that are not subdivision candidates, investors are typically buying to renovate and resell. That leaves less room in the price for the seller. Slade says an investor will pay “at best 50 cents on the dollar” of what the property could be worth once it is fixed up. This is to allow them to improve the house with a good amount of renovation and repairs. There are instances where sometimes an investor will pay a bit more, if the renovations are primarily just cosmetic upgrades like painting and refinishing floors, then staging the property to give it the best possible appearance.
Once a home looks ready for a regular buyer, the pool of interested buyers widens and the price follows.
Test the Market Before You Decide
When a Seller isn’t sure what direction they want to go, Slade’s team will sometimes sign an exclusive listing agreement and quietly present a home to a several active investors first (Slade gets at least 2 inquires a day from investors), just to see where the numbers land.
He shared a current example. The owners live on the West Coast, and the team has been managing the property for about six months. Roughly a dozen investors toured it, and offers came in between $375,000 and $425,000. Meanwhile, similar nearby homes have been listed and sold in the high $500,000s to low $600,000s.
The owners chose to renovate instead. The work, estimated at about $50,000, includes painting the kitchen cabinets, a new countertop, new flooring in the great room, refinishing the first-floor hardwood, new flooring in three upstairs rooms and updated light fixtures.
Add that $50,000 to the best investor offer, and the owners are at $475,000. If the home sells between $575,000 and $625,000, they come out well ahead, even after commission. In Slade’s view, putting in $50,000 and getting that back plus at least another $50,000 within three to four months is a strong return.
Spend on What Buyers See
Slade’s rule is that cosmetic work pays off, while major system replacements usually do not. At minimum, he suggests pulling up old carpet, since the wood floors underneath typically show better and make rooms look larger, even if they still need refinishing. Fill holes in the walls and repaint. MaryCeu and Mark pride themselves on giving their Sellers a list of items that will most often net a minimum of 2.5X the investment to as much as 4.5X the investment, which Slade likens to “legalized insider trading.”
He generally does not recommend replacing an aging roof that is not leaking, or an older boiler, furnace or water heater. Those items are handled through the home inspection. The money goes toward what buyers notice in photos. These items are, at best, valued at the cost of the repair or replacement and that means a Seller isn’t necessarily maximizing the value of their property. To make matters worse, Sellers that do this latter type of work, often use up their available cash, leaving nothing for the kind of work that provides much higher sale prices.
“The better it looks, the more eyes are going to fall on it,” Slade says. “The more eyes that are on it, the more appointments. The more appointments, the more offers. The more offers, the higher the price.”
“Mary and I pride ourselves on giving the advice that we know is going to make them the most money,” he adds.
Owners weighing either path can review the team’s seller resources for more on preparing a home for sale and are welcome to read Slade’s eBook: www.SladeTeamSellersBook.com .
This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.
Media Contact Information
Heather Hook
KeyCrew Media
Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.
