View full sizeLinda Pilger, of Paulsboro, speaks about how she has been trying to sell her two rental properties in Paulsboro for over a year, Friday, March 14, 2014. Pilger is one of many people having issues with selling properties in the area in the wake of the train derailment and water issues. (Staff Photo by Lori M. Nichols/South Jersey Times)
PAULSBORO — Entering the small, 2.6-square-mile town, one of the first sights seen is the large “Home of Champions” sign welcoming visitors to Paulsboro.
The familiar Red Raider mascot of the borough’s high school invites visitors to the struggling borough.
A few new signs have been popping up along Paulsboro’s streets, however — For Sale signs.
It’s difficult to drive down a street in town that doesn’t have at least one house for sale, and since a spate of recent environmental issues hit the industrial hub, those houses have not been selling.
There are currently 71 houses listed on the market in Paulsboro. Last month, 17 homes went up for sale. Compared to February 2013, when only eight houses were listed, this is a big spike. And many are asking if continuing effects of industry and the borough’s reputation of having chemical hazards could be the reason.
Linda Pilger has lived in Paulsboro for 30 years. She actually owns three houses in town, the one she lives in and two others she had purchased as investments.
For almost a year she has had the two investment properties on the market. She’s tired of being a landlord and would just like to simplify her life, but selling those houses has proved to be anything but simple. Even renting them out has been more difficult this year than ever before.
Five years ago she had one of the houses listed for rent and received more than 30 applications in a few weeks. This time around, the same house was listed and she received only two applications in a month.
“There’s too much going on here … with all the environmental issues,” she said. “I’ve lived here 30 years, but if I were an outsider, I might feel the same way.”
Chemical Chaos
The past two years haven’t been easy for the little river town, famous for its excellent high school wrestling and football programs, as well as the refinery towers that can be seen from the bleachers at those same football games.
In November 2012, a 100-year-old railroad bridge collapsed when seven train cars derailed over it, spilling a toxic chemical into Mantua Creek and the air around it. The event made national headlines as thousands were evacuated from their homes and the chemical mess was cleaned up.
There are still hundreds of people going through the process of suing the railroad company that owned the train and the bridge for exposure to vinyl chloride — the chemical that had spilled which is used in making PVC plastics.
Perfluoronananoic acid, also known as PFNA, another chemical used in making plastics, was found in the borough’s public water supply in higher levels than had been tested anywhere else in the country.
“After the Conrail thing, I was told I’d be lucky if I got $50,000 for them,” Pilger said of the two houses she has listed for $64,900 each.
A few months ago she thought she had a buyer for both homes. A man had offered her $45,000 for one and $59,000 for the other. Even though it was going to be a huge loss, she was excited for the opportunity to pass the investments on to someone else.
But once she disclosed the environmental problems — which she was advised she legally had to do — the buyer backed out, claiming he was advised it was a bad deal.
“I can’t swear that that’s the reason, but it’s just really weird,” Pilger said.
Feeling Trapped
Natasha Levard, a Realtor for Healy Realty who has multiple listings in Paulsboro, isn’t surprised. She’s seeing a trend in the town and it’s not one Realtors like to see.
“I’m finding the activity in general has slowed as to interest as far as Paulsboro is concerned,” she said. “We haven’t recovered from pre-Conrail, and now long-term, we don’t know how this water issue will affect us.”
In researching the borough’s home sales statistics, Levard has seen a dramatic downturn in the number of houses sold and the prices for which they are selling, compared to the number of houses going on the market.
The year before the train derailment, 38 houses in Paulsboro were sold, with the average sales price being $90,523.
From February 2012 to February 2013, the number of units sold went down 13 percent to 31 units and the average price dropped to $76,399, according to Levard.
“Right now we have 71 homes listed here in Paulsboro, and we’re only selling, what, 30 last year? We have a massive over-supply,” she said. “You either have to drop the price down and practically give it away or walk away.”
In New Jersey, sellers can be held liable if they don’t disclose problems with the homes they are selling. This includes defects in the house itself as well as attaching any written notifications that have been received from a public or private agency concerning the property.
Pilger has the option of continuing to rent her investment properties while she waits for a buyer, but for those who are selling because they want to move, there are tough decisions to make.
In that case some individuals are choosing to do voluntary foreclosures, become another landlord in the overly-rented town or doing a short sale and losing thousands on their investments.
“For some people, they feel trapped,” Levard said. “They want to get out and they don’t feel comfortable here anymore. I’ve had to explain to our clients, and the banks as well. We had the market bubble and burst, and they are trying to understand why some neighborhoods are recovering at a much faster rate than Paulsboro.”
Contact staff writer Rebecca Forand at 856-845-3300 or rforand@southjerseymedia.com.
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