Vacation Home Sales on the Rise

Sales of Vacation Homes Are Increasing Across the Nation and on Long Beach Island

Vacation Home Sales on the Rise

Vacation Home Sales on the Rise

The LBI Real Estate Market and Long Beach Island New Jersey

The Long Beach Island economy and the LBI NJ real estate market are based on summer tourism. With the majority of home on Long Beach Island being either second homes or vacation properties, LBI is what is known as a “second home market”. A rise in the sale of vacation homes, both on Long Beach Island and across the country, often signify a stronger economy as home buyers feel they have more discretionary income. Therefore, to see Vacation Home Sales on the Rise is a good good sign for the future of the LBI NJ real estate market.

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Vacation Home Sales on the Rise on Long Beach Island

According to NAR (the National Association of Realtors), Vacation Home Sales are on the Rise.  According to the 2014 NAR survey:

  • Vacation homes saw an increase of 29.7% from about 553,000 vacation homes sold in 2012  to 717,000 in 2013
  • Investment properties saw a decline in activity by about 8.5% to about 1.10 million units
  • While these numbers are much higher, they are still below the level of activity seen in 2006 (generally considered to be the peak of the real estate market)

We have seen a similar increase in vacation home sales on Long Beach Island. While a full year comparison of 2012 to 2013 is almost useless thanks to Hurricane Sandy, we can compare sales from September, October, November and December of 2013 since we saw a return to normal business during this time period.  September, October, November and December of 2012 saw a total of 143 closings take place in the LBI real estate market whereas September, October, November and December of 2013 saw a total of 166 sales! This is an increase of almost 18%! While it is lower than the national average, it is a very impressive number given the unique challenges presented by Hurricane Sandy.

Buying a Vacation or Investment Home in the Long Beach Island New Jersey Real Estate Market

While there are still some lingering questions and concerns about flood insurance and the possibility of future storms, the LBI real estate market has been very active. There are currently more than 100 homes under contract in the LBI real estate market which shows that Vacation Home Sales are on the Rise! Like any investment, buying a vacation or investment home in the Long Beach Island New Jersey real estate market requires a careful understanding of the area and the current market trends. For more information about the LBI real estate market, please do not hesitate to contact me, Nathan Colmer, and I will be happy to answer any questions you have!

Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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Price Per Square Foot For A New Home On Long Beach Island

Price Per Square Foot For A New Home On Long Beach Island

 

New Construction in the LBI NJ Real Estate Market

In the wake of Hurricane Sandy, there has been a massive wave of new construction taking place on Long Beach Island. With many homeowners concerned about damage from future storms and increased insurance rates, many have taken the opportunity to build a new home and maximize their investment in the LBI NJ real estate market. With such rapid change taking place on Long Beach Island, it is important to understand how these changes will impact the Long Beach Island real estate market. New construction has always been highly sought after and now, with so much of it taking place, buying a new home on Long Beach Island presents some excellent opportunities. Therefore, understanding the Price Per Square Foot For A New Home On Long Beach Island is essential prior to making any investment on Long Beach Island.

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Price Per Square Foot For A New Home On Long Beach Island

There are two ways to look at the Price Per Square Foot For A New Home On Long Beach Island. The first is by examining recently closed Long Beach Island real estate transactions and the second is by looking at the current active inventory of new homes for sale on LBI. Below is a breakdown of new construction single family home sales in the Long Beach Island real estate market between September 1st 2013 and March 1st 2014:

  • There were 8 closed new construction transactions closed in the real estate market on Long Beach Island
  • The average price of a new construction home was $1,201,125
  • The average price per square foot of a closed single family home was $500.36/ sq. foot

It is also helpful to understand the current market for new construction homes on Long Beach Island. As of the date of this article, the market for new homes on Long Beach Island is as follows:

  • There are currently about 40 active new constructions for sale on Long Beach Island
  • The average listing price of a new home on LBI is $1,479,219
  • The average price per square foot of a new home on LBI is $575.91/ sq. foot

Of the current active inventory, there are about 12 new constructions under contract or “pending” in the LBI NJ real estate market. While the average listing price of a new home on LBI is about $1,500,000, prices range from the low $600,000′s up to over $4,000,000! Location, size and the finishes used in the house will greatly influence the final sales number and the Price Per Square Foot For A New Home On Long Beach Island. New construction can prove to be a very smart investment as the house will be built to current codes including safety features such as break-away walls, hurricane impact windows and an elevation above the current base flood elevation. A buyer in the LBI real estate market can also do well by looking at vacant land or a knock down and building the house themselves. This is a long process (about a year) but can create instant equity in the real estate market on Long Beach Island.

Buying New Construction in the Real Estate Market on Long Beach Island New Jersey

Buying a new home can be a smart investment but it is not without challenges. It is important to understand who the builder for the new home was and what his or her reputation is. There are many modular homes currently under construction which tend to not be the best option for a new home on LBI. It is also advisable to have a home inspection on a new home so as to be sure the finished product is as it was advertised to be! For more information about the Price Per Square Foot For A New Home On Long Beach Island or about buying new construction in the LBI NJ real estate market feel free to contact me, Nathan Colmer, and I will be happy to answer any questions you have!

Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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Survey and Flood Elevation in the LBI Real Estate Market

Survey and Flood Elevation in the LBI Real Estate Market

 

Buying a House on Long Beach Island

Buying a home on Long Beach Island is an exciting experience and can be a very good investment. There are homes available in many different price ranges and activity has been increasing all over Long Beach Island. When looking to buy a home in the LBI real estate market, it is important to understand the process and what is needed to ensure a safe and secure transaction in the LBI real estate market. A key component to buying a home is getting a Survey and Flood Elevation in the LBI Real Estate Market.

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Survey and Flood Elevation in the LBI Real Estate Market

A survey and flood elevation will tell you a some important details about the purchase of a home in the Long Beach Island real estate market. Included in these documents will be:

  • The property boundaries and the amount of lot coverage on the property
  • The elevation of the first floor for the rating of flood insurance
  • The needed documentation for a Certificate of Occupancy

One of the most important factors in the determination of value in the LBI real estate market is lot size. The building envelope of a property is determined by the size of the lot and of the adjoining properties. A survey will have this information and this is needed for any new construction, installation of fences, decks and additions.

A flood elevation is essential for the determination of flood insurance. All homes on Long Beach Island with a mortgage (that are located in an A or a V zone) are required to have flood insurance and the only way to properly determine the cost of flood insurance is with a flood elevation certificate. An elevation certificate will tell you important information about the property including the elevation of the first flood above sea level, the grade of the exterior ground and the number of flood vents in a property. This information is used to determine the rate of flood insurance.

For most towns on Long Beach Island, a recent survey and flood elevation certificate will be required to obtain the certificate of occupancy needed to sell a home. While it is, in most cases, the seller’s responsibility to obtain the Certificate of Occupancy, it is usually the buyer’s responsibility to provide the Survey and Flood Elevation in the LBI Real Estate Market. The cost of these two items will usually be about $500-$800.

The LBI NJ Real Estate Market

Buying a home in the LBI real estate market is a major investment and it is therefore important to understand what is needed and how much the costs will be. A survey and flood elevation are an important part of a transaction in the Long Beach Island real estate market. Apart from being required to obtain a certificate of occupancy, a survey and flood elevation will give you important information about the home and could potentially save you money on your flood insurance! For more information about Survey and Flood Elevation in the LBI Real Estate Market or the real estate market on Long Beach Island, feel free to contact me, Nathan Colmer, and I will be happy to answer any questions you have!

Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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Vacation Rental Insurance On Long Beach Island

Vacation Rental Insurance On Long Beach Island

Vacation Rentals in the LBI NJ Real Estate Market

The summer rental season on Long Beach Island looks to be very strong. There has been an increase in activity for homes in all locations on LBI  as compared to both 2012 and 2013. Increase in activity helps to strengthen both the Long Beach Island economy and the Long Beach Island New Jersey real estate market. There is no question Hurricane Sandy still plays on the minds of everyone involved in the LBI economy and the impacts of flood insurance are still being felt by many homeowners. To help address to the fears to the LBI NJ summer rental market that still persist as a result of Hurricane sandy many real estate agencies have chosen to offer vacation rental insurance on Long Beach Island.

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Vacation Rental Insurance on Long Beach Island

Renting a home on Long Beach Island can offer fun and excitement for your summer vacation. However it is important to remember the unexpected can happen and vacation rental insurance on Long Beach Island can help to avert some of that headache and protect you from damages. When you purchase vacation rental insurance it can help to safeguard your travel plans from any unforeseen circumstances that may occur. Vacation rental insurance on Long Beach Island can help protect against occurrences such as

  • Sickness injury or death
  • Mandatory evacuations caused by a hurricane or other natural disaster
  • Job loss
  • School year extensions do to extend it snow

In the absence of vacation rental insurance, cancelling your trip to Long Beach Island NJ can cause the loss of the entire rental deposit and you may be responsible to pay for the entire cost of the summer vacation rental on LBI. In addition to protection from cancellation vacation  rental insurance can also offer additional benefits such as emergency medical and dental planning, baggage delays assistance and other unforeseen circumstances. In short, vacation rental insurance on Long Beach Island can help to set your mind at ease and make the entire vacation a little more enjoyable!

Renting a home on Long Beach Island New Jersey

The Long Beach Island real estate market offers excellent rental opportunities for your summer vacation. It is important to understand the local rental market and how it relates to the greater Long Beach Island economy and the LBI sales market. A strong a vibrant rental market will usually be the foundation for a stronger LBI sales market. So far, the Summer 2014 summer rental season looks to be very strong with many new and returning summer renters having already booked a vacation rental for Summer 2014 on Long Beach Island New Jersey!

For more information about real estate sales and rentals on Long Beach Island or if you have any questions about vacation rental insurance on Long Beach Island feel free to contact me Nathan call me and I’ll be happy to answer any questions you have.

Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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Rebuilding After Hurricane Sandy on LBI

Rebuilding After Hurricane Sandy on LBI

Hurricane Sandy and the LBI NJ Real Estate Market

Hurricane Sandy caused major damage to the Long Beach Island area when it made landfall at the end of October 2012 and prompted a huge wave of new construction on Long Beach Island. The face of Long Beach Island has been changing with new homes and major renovations taking place on LBI which should ultimately produce a stronger real estate market. When Rebuilding After Hurricane Sandy on LBI, it is important to keep in mind the current codes and flood insurance regulations to ensure your flood risks are kept to a minimum.

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Rebuilding After Hurricane Sandy on LBI

Building a new house on Long Beach Island can be an excellent investment and can realize immediate equity in the LBI NJ real estate market. There are still some excellent opportunities with storm damaged homes on LBI as well as non damaged knock downs but it is important to remember that when Rebuilding After Hurricane Sandy on LBI, building to the new flood codes will lessen the risk of damage from future storms and lower your costs of flood insurance. There are some important  points to consider when Rebuilding After Hurricane Sandy on LBI:

  • Flood insurance is based on the perceived risk associated with the property
  • Risk levels are determined by many factors but the elevation above sea level and the flood zone top the list
  • Foundation systems and flood vents can greatly impact the amount a homeowner pays for flood insurance on Long Beach Island

All properties on Long Beach Island have a base flood elevation associated with them. There are three predominate flood zones on LBI. They are an A flood zone, a V flood zone and a X flood zone. The majority of Long Beach Island falls into the A flood zone. Homes in an A zone are permitted to have solid block or piling foundation systems and usually fall into a Base Flood Elevation (BFE) of 7-9 feet. V zones are the most restrictive with higher elevations (usually 9-15 feet) and limitations on what can be used as a foundation system.  For example, sold wall foundations (blocks) are not permitted as the foundation system needs to have break away walls. V zones are mostly limited to the oceanfront and some bayfront areas on LBI. The X zone is actually the best zone to be in as it is the least restrictive with some lenders not even requiring flood insurance in these zones!

There are two foundation systems commonly used for new construction in the LBI real estate market. The most common is a piling support system with a breakaway wall foundation and flood vents. This system will be viewed as less risky by insurance companies and can often result in a discount on the flood insurance premium.  Less commonly used are block foundations. Although this was the go to method for homes built in the early stages of development on LBI,  these systems are rarely used for new home on LBI. You do see this foundation system commonly used for raising homes on LBI. In either case, flood vents are an important upgrade that can significantly raise or lower the cost of flood insurance on LBI. The rule of FEMA is you need 1 square inch of flood vent for every 1 square foot of enclosure to meet code.

Building a New Home on Long Beach Island

Regardless if your plan is to buy a knock down on Long Beach Island or build on an existing property, keeping in mind the guidelines imposed by FEMA will not only lower your risk, it will also save you money in the long run! Rebuilding After Hurricane Sandy on LBI offers some excellent opportunities but it is important to understand the current LBI real estate market trends and rebuild in line with the current trends so as to preserve your investment on Long Beach Island!

If you would like more information about the LBI real estate market, new construction or Rebuilding After Hurricane Sandy on LBI feel free to contact me, Nathan Colmer, anytime and I will be happy to answer any questions you have!

Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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Brokers Open House on Long Beach Island

 

Selling on Long Beach Island New Jersey

Selling a home is a major financial decision in any real estate market. In the  Long Beach Island real estate market, which is an area of mostly second homes and investment properties, it is important to make sure that a home for sale get the most exposure possible. While it is very true that most home buyers, over 90% in fact, start their search online, there is still much value to the “tried and true” methods of marketing a house for sale on LBI. One of the most effective marketing tools available is a Brokers Open House on Long Beach Island.

What Is A Broker’s Open House and Why Is It So Important?

Most home buyers and home sellers are familiar with a public open house where the listing agent will host an event for interested buyers (or nosy neighbors) to preview the house and ask questions. A Brokers Open House on Long Beach Island is similar however it is marketed directly to other agents rather than the general public. A Brokers Open House on Long Beach Island is provided by the listing agent as a part of the marketing package and will usually include a catered lunch so as to incentivize other agents to come and preview the property. The open house will usually last about 2 hours and should generate about 20-30 agents from various offices to preview the property.  There are several reasons this is an effective tool when marketing a house for sale in the LBI NJ real estate market such as:

  • A Brokers Open House on Long Beach Island allows other agents to preview the property so they can answer questions intelligently from would be buyers
  • Questions can be answered directly by the listing agent regarding key concerns such as flood insurance rates, damage from Hurricane Sandy and past rental history
  • A Brokers Open House on Long Beach Island allows for direct feedback from other agents regarding price, condition and any improvements that could be made to the property to help it sell

Statistically speaking, the odds are that an agent other than the listing agent will sell a listing. This is simply due to the fact that there are hundreds of real estate agents on Long Beach Island each with their own list of buyers who receive daily or weekly updates on new listings for sale on Long Beach Island. Therefore, it is very important to market the sale listing not only to potential buyers, but also to other agents who can, after seeing your house in person, can speak knowledgeably about the property and answer questions for their clients. This can be the difference between a buyer coming to see your house in person or skipping it over.

In any real estate market, and more so now than ever, there are many questions about homes for sale on Long Beach Island. Key issues like flood insurance rates and damage from Hurricane Sandy are questions on everyone’s mind. Being able to physically visit a sale listing and have the questions answered in a direct dialogue is the best way to dispel any inaccuracy about the  property. It is easy to write in an MLS sheet, “damage from Hurricane Sandy was repaired” but it is certainly better when someone can see for themselves that the damage was truly repaired and the issues from the storm have been resolved.

A Brokers Open House on Long Beach Island also allows for feedback from the real estate community on Long Beach Island. Again, the odds are that another agent will sell the house so it is important to hear what their reactions are to the property in terms of price, condition and overall appearance. If the agents react negatively to one or several aspects of the house, it may suggest that action is needed to correct the issues. For example, if 30 agents visit the open house and 25 state the house is overpriced, the listing agent and the seller must sit down together and review the market and the comparable properties to see if a reduction is needed. On the other hand, if 25 of the 30 agents state the house is priced well, this is a clue that when an offer is made, you may not have to negotiate the price much to make a deal.

Listing and Selling a Home in the Long Beach Island New Jersey Real Estate Market

When listing a house for sale on Long Beach Island, there are three core areas involved in selling the house. They are: Pricing, Marketing and Negotiation. Above all else, price is the most important factor in the sale of a home on Long Beach Island. An overpriced house will simply not sell no matter how special it may seem. Even if a buyer “fell in love” with the property, a bank will not approve a mortgage for a home that is overpriced in comparison to the market.  After pricing, marketing is the tool by which a buyer will be found for the property. I employ a number of marketing tools to ensure that my listings make the best impression and get the most visibility possible. This includes professional photos, interactive floor plans, virtual tours, postcard mailings and a number of other online and traditional marketing tools (including of course a Brokers Open House on Long Beach Island).

For more information about a Brokers Open House on Long Beach Island or to discuss selling your home on Long Beach Island, please do not hesitate to contact me anytime and I will be happy to help!

Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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Home Style Renovation Loans in the LBI NJ Real Estate Market

Mortgages for Storm Damaged Homes on Long Beach Island New Jersey

Home Style Renovation Loans in the LBI NJ Real Estate Market

Home Style Renovation Loans in the LBI NJ Real Estate Market

Hurricane Sandy and the LBI NJ Real Estate Market

Hurricane Sandy made landfall on Long Beach Island at the end of October 2012 and caused major damage to the area. Luckily, thanks to flood insurance payments, fundraising, community efforts and hard work, the LBI area has made a major recovery and is looking better than ever! There are still some storm damaged homes for sale on Long Beach Island and these properties offer both a unique opportunity and a unique challenge. The major difficulty in purchasing storm damaged homes on Long Beach Island has to do with financing as these properties will not qualify for a traditional loan. Therefore, special loans are required and one of the best is the Home Style Renovation Loans in the LBI NJ Real Estate Market.

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Home Style Renovation Loans in the LBI NJ Real Estate Market

A home style renovation loan is a special loan product offered by Van Dyk Home Loans and Glendenning Mortgage Corporation specially for Hurricane Sandy damaged homes. A few of the programs details are as follows:

  • A Home Style Renovation Loan qualifies for complete tear down and rebuilding of a property and can be for a primary or secondary home
  • Pilings are an acceptable foundation and the loan will apply to modular homes as well as traditionally built structures
  • The loan is available for a purchase or refinance and the LTV (loan to value ratio) is based on the completed value of the home

This program offers some excellent opportunities for those looking to buy a storm damaged home in the LBI NJ real estate market or areas such as Beach Haven West. While there are federal loan programs for primary homes such as a 203k, these loans do not apply to the secondary homes or investment properties which make up the vast majority of homes on Long Beach Island. Since this program applies to secondary homes, it is of tremendous value to those looking to buy and rebuild on LBI!

For many who are looking to build on Long Beach Island, the go to choice for foundation systems are pilings with break away walls. Some loan programs will not accept this foundation system however the Home Style Renovation Loan offered by Van Dyk Home Loans will! In addition, a modular home can be built and count towards the finished product. While modular homes tend to be less expensive than a traditional stick built structure, they do have limitations.

Home Style Renovation Loans in the LBI NJ Real Estate Market do not only apply to home buyers but also to those looking to refinance a storm damaged home to rebuild. This program can help those struggling to rebuild their vacation properties as well as those looking to enter the LBI real estate market. The cost of construction can even be up to 50% of the finished product!

Buying Homes with a Mortgage in the Long Beach Island New Jersey Real Estate Market

Investment in the LBI real estate market can not only produce a positive return on the investment, it can also provide wonderful summer memories at the beach! It is important to examine any investment on LBI carefully to make sure you do not overpay for a property on LBI. I can help you identify good buying opportunities and excellent building sites with storm damaged homes that will qualify for Home Style Renovation Loans in the LBI NJ Real Estate Market. For more details on the loan product contact Neil Robinson with Van Dyk Home Loans at 609-384-2140 or feel free to contact me, Nathan Colmer and I will be happy to help!

Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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Long Beach Township Flood Insurance Information

Long Beach Township Flood Insurance Information

Long Beach Island and Flood Insurance

For the first time in recent memory, Hurricane Sandy brought to everyone’s attention the impact a major storm can have on the Long Beach Island area. While it is true that LBI has suffered storms and floods in the past (1992, 1962, 1944), Hurricane Sandy has created a number of changes to the Long Beach Island area. Each of the six municipalities on LBI have their own guidelines however there are many similarities with Long Beach Township Flood Insurance Information. Click here to search all homes for sale in the Long Beach Island NJ real estate market

Long Beach Township Flood Insurance Information

Long Beach Township participates in a “Community Rating System”. This, along with other measures, helps to provide homes in Long Beach Township with a discount on their flood insurance. As a part of the participation in the Community Rating System (CRS), as of October 1st 2013 Long Beach Township receives a 25% discount on flood insurance for homes located in the municipality. There are a few important pieces of information that residents in Long Beach Township should be aware of such as:

  • Flood Hazard Zones
  • Permits and Substantial Damage Letters
  • Property Protection

Flood hazard zones are designated by FEMA and are designed to give some insight as to where flood waters are expected to reach during a 100 year storm such as Hurricane Sandy. Long Beach Township is, like most barrier island, at different flood elevations in different parts of the Township. The ocean side and oceanfront areas  tend to be highest with natural ground elevations of 16-20 feet whereas there are bayside areas that are only 3-4 feet. Specifically, there are some low areas in North Beach Haven, Beach Haven Terrace and Beach Haven Crest

Permits are required for most work completed in Long Beach Township including major renovations, curbing and additions to the structure. In addition, if a house was damaged by Hurricane Sandy it could be at risk for having been “substantially damaged”.  Homes that are substantially damaged are classified as having been damaged more than 49% of their replacement value as determined by the tax assessor.

Lastly, there are some simple steps that homeowners can take to help with their flood insurance costs. Street drains are an effective way to keep water from pooling so it is important to keep them free of debris. Loose items like outside furniture should be tied down to avoid it becoming dangerous in a high wind. In addition, installing additional flood vents, storm shutters or storm watch windows can not only protect your house, it can also lower the costs of your insurance. Long Beach Township offers consultations either at your house or at the township offices and can be set up by calling 609-361-6679.

Flood Insurance and the Long Beach Island NJ Real Estate Market

Flood insurance is directly linked to home values in the LBI NJ real estate market. Homes that are at or above the new base flood elevations tend to be an easier sale and are therefore worth more in the current market. Homes that are below base flood elevation still have value, but additional “homework” is needed to determine what the new flood insurance rate will be and if it makes financial sense to raise the existing house. For more information about Long Beach Township Flood Insurance Information or the impact flood insurance has had on the Long Beach Island NJ real estate market feel free to contact me, Nathan Colmer and I can answer any questions you have!

Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market

Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market

 

Hurricane Sandy and the LBI NJ Real Estate Market

Hurricane Sandy, which made landfall on Long Beach Island at the end of October 2012, significantly impacted the Long Beach Island area and the LBI NJ real estate market. Even though the entire area and the local market have both recovered, the impacts of Hurricane Sandy can still be felt and it is therefore important to protect yourself when Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market.

Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market

There are three primary areas to consider when searching for a home in the LBI NJ real estate market. They are:

  • The cost of flood insurance for homes on Long Beach Island
  • The cost of repairing damage to a home in the LBI NJ real estate market
  • The value of a home on Long Beach Island relative to its condition and elevation

 

Perhaps the most publicized concern in the wake of Hurricane Sandy is flood insurance. While it is true that in some cases flood insurance will be very expensive, the majority of homes on Long Beach Island are either elevated above the current Base Flood Elevation or will see only a minimal increase to their annual costs. That being said, there are many homes that are below the current elevation levels. These homes are mostly located on the bayside, but it is important to understand flood insurance on Long Beach Island and realize that the costs of insurance can be prohibitive of purchasing a home in some cases.

If a home has been damaged by Hurricane Sandy it is important to remember to add in the cost of the repair to the purchase price of the house…and add 20%! Often times,  renovations can far exceed the estimated costs so it is important to add in some money for unexpected items when trying to value the property. It is easy to look at a home that has been damaged and forget that the costs of renovation and possibly elevation will add to the total price. The additional cost could potentially exceed the market value of the house.

Above all else, when Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market it is important to make sure that the costs of the home do not outweigh the market value of the property. A home that is significantly below base flood elevation or a house that requires substantial renovation may in fact not be the best value in the Long Beach Island real estate market. The best values on Long Beach Island will come from a motivated seller. Sometimes that motivation will come from a home having been damaged by Hurricane Sandy and sometimes a better value can be found elsewhere. When Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market it is important to look at all aspects of the property, identify any potential problems and offer a price that protects the investment.

Buying and Selling Storm Damaged Homes in the LBI NJ Real Estate Market

Pricing is the most important aspect of any real estate market and especially true in the Long Beach Island real estate market. There are many homes for sale on LBI in many price ranges but when buying or selling a home on LBI, one must look at the market as a whole to remain competitive. Sellers must price their house in line with the market to attract attention. Buyers too must examine the market and make sure the house is not overpriced and that their investment is secure. Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market makes this harder as there are many more aspects of a property that must be taken into consideration. For more information about Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market feel free to contact me, Nathan Colmer and I will be happy to answer any questions you have!

Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Beach Haven and the LBI NJ Real Estate Market

2013 was a challenging year for the entire Long Beach Island real estate market thanks to the devastating impact of Hurricane Sandy and the changes to the National Flood Insurance Program. Hurricane Sandy caused massive amount of damage to the entire LBI area and Beach Haven was no exception. There were many storm damaged homes in the town of Beach Haven and many homeowners had to decide if they wanted to sell or rebuild. Almost completely unrelated  to Hurricane Sandy, yet just as significant, were the changes to the National Flood Insurance Program (which were actually approved in September 2012 a full month before Hurricane Sandy made landfall). These changes forced many to understand a new set of rules that could potentially impact the value of their property in the LBI real estate market. Luckily, Beach Haven NJ Real Estate in 2013 remained strong, as it did elsewhere on Long Beach Island, and home sales were strong. You can click here to search all homes for sale in the town of Beach Haven on Long Beach Island.

Single Family Homes and Beach Haven NJ Real Estate in 2013

While the Beach Haven NJ real estate market is comprised of many different parts including single family homes, condos, duplexes and commercial properties, we will be looking only at single family homes today as this is the best indicator of value in the  LBI real estate market. Single family homes in the Beach Haven real estate were were broken down as follows:

  • There were 29 single family homes sold in the Beach Haven real estate market
  • The average sales price was $802,244
  • On average, homes spent 167 days on the market and sold for 93.5% of their asking price in the Beach Haven NJ real estate market

Of the 29 single family homes that sold in 2013, only 8 were sold as storm damaged homes which makes up just of 25% of all homes sold in Beach Haven. The average sales price of a home is of course influenced by these storm damaged homes which tends to skew the actual value of a home in the Beach Haven market as theses storm damaged homes were sold for land value with little to no consideration to the physical structure (in fact, most consider the storm damaged home to lower the property value as it is an additional cost to remove the building).  When these storm damaged homes are taken out of the equation, the average price of a single family home in Beach Haven jumps to around $975,000 which is more in line with the entire Long Beach Island real estate market.

Buying and Selling in the Beach Haven NJ Real Estate Market

There are currently about 50 single family homes for sale in the Beach Haven real estate market with prices ranging from $299,999 up to almost $6,000,000! There are virtually no storm damaged homes left for sale in Beach Haven as most owners have already decided to either rebuild or have sold their homes over the past year. It is a testament to the area that after such a major storm, such a small number of homes were actually sold due to storm damage which has helped to encourage not only a speedy recovery of the area, but also investment in the Beach Haven real estate market. For more information about Beach Haven NJ Real Estate in 2013 please do not hesitate to contact me with any questions!

Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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