LBI Real Estate After Sandy

Changes to the Long Beach Island Real Estate Market after Hurricane Sandy

LBI Real Estate After Sandy

LBI Real Estate After Sandy

Long Beach Island Real Estate

The Long Beach Island real estate market has experienced many changes since the impact of Hurricane Sandy the end of October 2012. Hurricane Sandy brought to light issues such as flood insurance, house raising, and the vulnerability of Long Beach Island to hurricanes. That said, there have been many positive results from Hurricane Sandy which have helped to strengthen the LBI real estate market and create a more storm ready community. In short, LBI real estate after Sandy is doing very well!

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LBI Real Estate After Sandy

There have been three main areas of impact after Hurricane Sandy. They are:

  • Buying opportunities in the LBI real estate market
  • A better understanding of flood insurance rules and regulations
  • A more storm ready Long Beach Island

Hurricane Sandy created some excellent buying opportunities in the LBI real estate market. These opportunities present themselves in several ways. There are still storm damaged homes which may be purchased for land value and a new home built in their place. This can be highly advantageous for those looking to build a new home on Long Beach Island as a buyer will not have to give any financial consideration to the existing structure. Many homes were renovated in the wake of Hurricane Sandy which has helped to create more “move-in ready” homes. This is important as many buyers in the LBI real estate market will shy away from a major renovation project given the distance between the primary residence in your vacation home.

The national flood insurance program has been in existence long before Hurricane Sandy however it was rarely utilized on Long Beach Island and to a degree has slipped into obscurity. Hurricane Sandy caused such widespread damage that the entire population of Long Beach Island received a crash course in flood insurance. This is helped many homeowners to improve their properties and make them more storm ready. This includes raising a home above base flood elevation, building a new home, and taking preventative measures to limit the impact of future storms. In addition, Long Beach Island as a whole is taking steps to limit the impact of hurricanes and tidal flooding. A massive, island wide beach replenishment project is in the works which will help to serve as a first line of defense against future storms.

Improvement in the Long Beach Island Real Estate Market

There is no doubt that the LBI real estate market has been improving since Hurricane Sandy. Both the number of homes sold in the average sales price are both increasing and confidence in the ability of Long Beach Island to weather a storm has greatly improved. Compared to other shore towns in New Jersey, LBI made a speedy recovery which further helped to improve buyer confidence. For more information about the LBI real estate after sandy, contact me and I will respond right away.

By : 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

Vulnerability of Long Beach Island to Hurricanes

Flood Risks on Long Beach Island

Vulnerability of Long Beach Island to Hurricanes

Vulnerability of Long Beach Island to Hurricanes

Hurricane Sandy and Long Beach Island

Hurricane Sandy made landfall on Long Beach Island at the end of October 2012. Even though Hurricane Sandy was the first storm to caused widespread damage in more than 20 years, Sandy served as a reminder Long Beach Island is in fact a barrier island and is a risk of flooding caused by storms. The vulnerability Long Beach Island to hurricanes is indisputable and has been a fact of life since time began. That said, it is important to understand the risks associated with owning a home at the beach.

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The Vulnerability of Long Beach Island to Hurricanes

There are a few facts about flooding than any buyer should be aware of when looking to purchase a home in the LBI real estate market. They are:

  • Flooding is a part of life living at the beach
  • Bayside areas are at a greater risk of flooding than the Oceanside areas
  • Steps have been taken to create a more storm ready Long Beach Island

Flooding is in fact an inevitability when owning a home on Long Beach Island or any other shore towns. Barrier islands, by their very meaning, imply that they are the first line of defense against any storm. That said, Long Beach Island is unique in that it tends to be at a higher elevation and other shore areas. This is very helpful in defending against future storms and hurricanes. Most of the flooding that occurs on Long Beach Island will be limited to streets in big storms. It is very uncommon for a home to sustain water damage.

Bayside areas are a greater risk of flooding than their ocean side or ocean block counterparts. Contrary to popular opinion, flooding occurs on the Bayside areas first. When a storm the increase in water volume, also known as storm surge, will fill the back bays and encroach on land. Oceanside areas, which are at a higher elevation to begin with, will therefore be safer in future storms.

In the wake of Hurricane Sandy, Long Beach Island has taken many proactive steps to ensure the area will survive future storms. Most noticeable, or the changes being made to Long Beach Island with many older homes either being raised above base flood elevation were new homes being built in their place. In either case, these homes will be at far less risk of flooding there for the damage caused by future storms will be minimal. In addition, all of Long Beach Island is undergoing a massive beach replenishment project which will live in the beaches and dune in the area. This will help to limit flooding and limit the impact of future storms.

Flooding and Hurricanes on Long Beach Island

For living on a barrier island, there have been comparatively few major weather. Hurricane Sandy made landfall at the end of October 2012. Prior to Hurricane Sandy, there was a major storm in 1992, 1962, in 1944. With a major weather event occurring every 20-30 years, Long Beach Island has a relatively low danger risk over the long term. For more information about the vulnerability of Long Beach Island to hurricanes, contact me and I will respond right away.

By : 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

Beach Haven West is a LBI Alternative

Beach Haven West is a Waterfront Alternative to Long Beach Island

Beach Haven West is a LBI alternative

Beach Haven West is a LBI alternative

Long Beach Island and Beach Haven West Real Estate

Long Beach Island offers broad appeal to those looking for a second home or a vacation destination. The problem for many buyers is the price of a home in the LBI real estate market, especially with the waterfront real estate market. While Beach Haven West is not a part of Long Beach Island, it does offer some excellent opportunities to purchase a vacation home. For this reason, Beach Haven West is a LBI alternative.

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Beach Haven West is a LBI Alternative

Beach Haven West offers some excellent advantages for those looking to purchase a vacation home:

  • Nearly every home in Beach Haven West is located on the waterfront with direct bay access
  • There are many new homes elevated above base flood elevation
  • The average price of a home in Beach Haven West is roughly 40% to 50% of Long Beach Island

Beach Haven West was developed in the 1950’s and 1960’s to be a waterfront community of homes. Nearly every home is on the water and has direct access to the bay. This is highly appealing to boaters who are looking for an affordable way to live at the Jersey Shore.

Hurricane Sandy caused widespread damage to Beach Haven West. Many of the original homes were built low to the ground and sustained flooding. This has paved the way for an unprecedented wave of new construction. These homes are built well above the new base flood elevation levels and are built to be more storm ready. These homes offer excellent amenities and can be ideal homes at the shore.

The average price of a home in Beach Haven West is substantially lower than that of a home on Long Beach Island. Each month, the average price of a single family home in Beach Haven West is about $400,000 whereas the average price on LBI is around $1,000,000.  This can offer a great chance to afford a quality built home in a great area without breaking the bank!

Buying a Home in the Beach Haven West Real Estate Market

Buying a home can be an exciting investment and offer a chance to live the dream at the beach! Long Beach Island offers some beautiful homes but the price can turn off some buyers. Beach Haven West is a LBI alternative that should be considered by those looking for a beach house they enjoy for years to come! For more information about buying a home on Long Beach Island or Beach Haven West, contact me and I will respond right away.

By : 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

Click here to search all homes for sale in the Beach Haven West Real Estate Market

 

 

LBI Flood Insurance Overview

Flood Insurance on Long Beach Island

LBI Flood Insurance Overview

LBI Flood Insurance Overview

Long Beach Island Real Estate

The real estate market on Long Beach Island has seen some strong activity and an increase in both the number of homes sold and the average sales price. Part of the reason for the recent improvement in the LBI real estate market as to do with a better understanding of flood insurance. In the immediate aftermath of Hurricane Sandy, there was widespread concern that flood insurance would price out the market for homes on Long Beach Island. This is not all the case. Therefore, for those looking to buy a home on Long Beach Island, a quick LBI flood insurance overview can be very helpful.

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LBI Flood Insurance Overview

There are four core metrics used to determine the cost of flood insurance on Long Beach Island. They are:

The flood zone

  • The first floor elevation
  • The number of flood vents
  • The elevation of the crawlspace

Most of Long Beach Island is located in the “A” flood zone however there are areas in the “V” zone, the “AE” zone, the “AO” zone and the “X” zone. Some of these zone, for example the V and the AO zone, can have more stringent building codes and may see a higher cost of flood insurance. X zones are very favorable and many banks will not require insurance in these areas even if you have a mortgage!

The first floor elevation is perhaps the most widely known metric. Homes that are below base flood elevation will see a higher cost of insurance than homes at or above base flood. That said, in most cases, the cost of insurance will be very manageable. While it is not possible to give an estimate for the cost of insurance (as there are so many unique variables specific to each home), most homes below base flood elevation will see a cost of insurance in the $2,000-$3,000 range per year.

The number of flood vents and the elevation of the crawlspace are additionally used to determine the cost of insurance. In order to see the best rate, the elevation of the crawlspace must exceed the elevation of the outside grade and the flood vent openings must be one square inch for every one square foot of enclosure.

Buying a Home in the LBI NJ Real Estate Market

There are a number of factors that must be considered when buying a home in the LBI real estate market. Flood insurance is indeed a cost that must be taken into account. The only way to determine the true cost of flood insurance is to obtain an elevation certificate and obtain a quote for the cost based on the rating.  This is a simple process and one I am happy to help with. For more information about this LBI flood insurance overview or the LBI real estate market in general, call, text or email me and I will respond right away!

By : 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

Long Beach Township 2015 Flood Information

Understanding New Guidelines for Flood Insurance and Preventative Methods to Safeguard Long Beach Island

Long Beach Township 2015 Flood Information

Long Beach Township 2015 Flood Information

Flood Insurance and Long Beach Island

Flood insurance is required for nearly every home on Long Beach Island with a mortgage. Long Beach Island is located in a floodplain, and is at risk for flooding in major storms. Therefore, flood insurance is designed to help protect residents investments and restore a property after a disaster. Understanding Long Beach Township 2015 flood information can help to prepare residents and better educate homeowners about flood insurance.

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Long Beach Township 2015 Flood Information

There are a few important points to mention about Long Beach Township’s flood insurance program. They are:

  • Long Beach Township is located in a special flood hazard area
  • Substantial improvements may require reading a home
  • Maintaining the drainage system on Long Beach Island can help reduce line

Long Beach Township, Lake most of Long Beach Island, is a special flood hazard area. Essentially, this means a home has a 26% chance of experiencing flooding during the course of a 30 year mortgage. Floodplain maps of been developed for Long Beach Township by the national flood insurance program and these maps show the predicted flood elevations could be reached or exceeded during the 100 year period. Flooding is more likely to occur on the Bayside areas been on the Oceanside.

Long Beach Township’s flood regulations require that if the  cost of any repair, damage, or reconstruction exceeds 50% of the replacement cost as determined by the tax assessor, the entire structure must comply with FEMA’s flood regulations. This may require elevating the home above base flood elevation so it is important to consult Long Beach Township’s construction office prior to commencing any major renovations.

Long Beach Island has a network of storm drains which are designed to allow water which accumulates on the streets during storms to pass into the bay. Maintenance of these storm drains is essential to limiting the risk of flooding on Long Beach Island. Keeping these drains free of trash and debris help to speed water off the streets and into the bay system. In fact, there is a public ordinance prohibiting disposal of trash or debris into the storm drains.

Flood Insurance and Long Beach Island

It should come as no surprise that the possibility of flooding exists on Long Beach Island. When Hurricane Sandy made landfall at the end of 2012, many homes experienced flooding for the first time in their history. Luckily, Long Beach Township is more storm ready than ever and a large beach replenishment project will help to further secure the area. Even with these proactive steps being taken, it is important for all residents and would be home buyers in the LBI real estate market to be aware of the risk and understand what steps can be taken to limit potential damage. For more information about Long Beach Township 2015 flood information, call, text or email me and I will respond right away.

By : 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

Hurricanes and Flooding on Long Beach Island

Concerns About Future Storms on Long Beach Island

Hurricanes and Flooding on Long Beach Island

Hurricanes and Flooding on Long Beach Island

Hurricane Sandy and the LBI Real Estate Market

Hurricane Sandy made landfall on Long Beach Island at the end of October 2012. The storm was massive in size and impact that LBI at a full moon and at high tide. In other words, Hurricane Sandy could not have picked a worse time to make landfall. The damage caused to Long Beach Island was significant and for the first time in recent memory raised concerns hurricanes and flooding on Long Beach Island. Concerns about future storms are indeed valid and they should be understood and recognized by anyone looking to buy or sell a home in the LBI real estate market.

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Hurricanes and Flooding on Long Beach Island

In many ways, Hurricane Sandy has helped to safeguard Long Beach Island against future storms. There have been two major improvements to Long Beach Island since Hurricane Sandy. They are:

  • Beach replenishment projects have been approved to strengthen the beaches and dune systems
  • New building codes and height limits have made LBI more storm ready

Beach replenishment was already underway before Hurricane Sandy made landfall. This process involves taking sand from the ocean floor and depositing it on the beaches. This creates a large and sound do system with a wider beach they can better absorb the impact of a storm. When Hurricane Sandy made landfall, the towns of Harvey Cedars, Surf City, and parts of Brant Beach had completed their beach replenishment projects and as a result, these areas experienced less damage. When the rest of Long Beach Island completes the beach replenishment project, LBI will be more storm ready and better able to handle a hurricane.

New building codes and extensive renovations on Long Beach Island have made the area more storm ready. Thanks to assistance from flood insurance, many homes there were previously at risk for flooding have been raised well above the base flood elevations. In the event of another storm impacting Long Beach Island, these homes should experienced little to no damage. It is nearly impossible to drive down a street on Long Beach Island without seeing a multitude of new construction or raised homes. Much of this was a direct result of Hurricane Sandy and thanks to the new building codes, these homes are ready to whether the next storm.

Hurricanes and the Long Beach Island Real Estate Market

It is interesting to point out that nationwide, real estate values actually increase in the wake of a natural disaster. This has certainly been the case on Long Beach Island with the LBI real estate market seeing a significant improvement after Hurricane Sandy. With literally millions of dollars having been invested in the LBI area and new construction taking place everywhere, the overall property values have improved. It is impossible to say when the next storm will make landfall on Long Beach Island, however living on a barrier island is a virtual certainty a number storm will make landfall at some point. When that time comes, LBI will be more ready and will be able to absorb the impact of the storm. For more information about hurricanes and flooding on Long Beach Island for the LBI real estate market in general, CONTACT ME and I will respond right away.

By : 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

Smart Vents, Flood Insurance And The LBI Real Estate Market

Understanding Smart Vents, Flood Insurance And The Real Estate Market On Long Beach Island

Smart Vents, Flood Insurance And The LBI Real Estate Market

Smart Vents, Flood Insurance And The LBI Real Estate Market

Flood Insurance On Long Beach Island

Flood Insurance Is An Important Topic It Should Be Understood By Both Buyers And Sellers In The LBI Real Estate Market. Luckily, In Most Cases The Cost Of Flood Insurance Is Very Well On LBI. There Are Cases Where Insurance Premiums Are Much Higher, And These Cases Steps Must Be Taken To Help Lower The Cost Of Insurance.  The Ways To Lower The Cost Of Insurance Can Vary From Simple Modifications To A Full On Raising A Home. One Comparatively Inexpensive Alteration That Can Have Long-Term Positive Impacts On The Cost Of Insurance Are Installments Market. Smart Is, Flood Insurance In The LBI Real Estate Market All Have Important Interaction That Can Help To Increase Property Values.

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Smart Vents, Flood Insurance And The LBI Real Estate Market

Many People Do Not Understand The Relation Between Vents And Flood Insurance Costs. To Keep The Explanation Simple, Flood Vents Are Openings In The Foundation Of A Home That Allowing Water To Pass Through In The Event Of Flood. These Events Help To Limit The Amount Of Pressure Applied To The Foundation And Can Limit Damage To The Building. Flood Vents Are Required In All Flood Zones And Are Mandated In The Lowest Floor. In Most Cases On Long Beach Island The Garage Will Be The Lowest Level And Must Have Openings In The Foundation To Allow The Automatic Entry And Exit Of Flood Waters. While There Are A Number Of Different Types Of Flood Vents, A Smart Vent Offers Several Advantages. For Example:

Smart Vents Are The Most Advanced Flood Protection On The Market

Smart Vents Can Help To Maintain Aesthetics By Requiring Fewer Vents Than Traditional Methods

  • Smart Vents Can Bring Going Into Full Flood Compliance And They Reduce The Cost Of Flood Insurance
  • These Events Are Easy To Install And Can Even Be Retrofitted Into An Existing Flood Event In A Home
  • A Smart Flood Vent Words By Having A Door Latch Closed Until Flood Waters Rise. The Rising Waters Will Lift An Internal Float And Unlatch The Door Allowing Water To Pass Freely.
  • The Advantages Of Flood Vents In The LBI Real Estate Market

Having The Most Up-To-Date Technology To Mitigate Flood Damage To Not Only Lower The Cost Of Flood Insurance, It Can Also Make A Home More Appealing To Purchase. Offering Better Protection Against Any Future Storms, Can Safeguard The Investment Made In The LBI Real Estate Market. While There Are A Number Of Proactive Steps That Can Be Taken To Lower The Cost Of Flood Insurance, Smart Vents Are A Great Place To Start. For More Information About Smart Vents, Flood Insurance And The LBI Real Estate Market, CONTACT ME And I Will Respond Right Away.

By : 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

Basements On Long Beach Island

Understanding Basements And The Impact On Flood Insurance

Basements On Long Beach Island

Basements On Long Beach Island

Long Beach Island Real Estate

The LBI Real Estate Market Is Comprised Of A Number Of Different Home Styles. Buyers Can Choose From Single-Family Homes, Duplexes, Condominiums, And Even Interval Ownership Properties. With So Many Homes To Choose From, It Is Important For A Buyer To Be Able To Understand The Positives And Negatives Associated With Each Property Type. This Goes Far Beyond The Broad Understanding Of The LBI Real Estate Market, And Rather Requires A More Intimate Understanding Of The Individual Characteristics Of Each Home. A Good Example Of A Little Understood Topic Are Basements On Long Beach Island.

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Basements On Long Beach Island

It May Seem That There Are Homes On LBI With Basements. Most Of Long Beach Island Is Between 3 Feet And 12 Feet Above Sea Level. Even With These Relatively Low Ground Elevations, And A High Water Table, There Are A Surprisingly High Number Of Homes With Basements. These Basements Can Have Several Negative Impact On The Property. For Example:

  • Basements May Drastically Increase The Cost Of Flood Insurance
  • Basements Are More Prone To Flooding And May Require A Sump Pump
  • With The Amount Of Moisture Present In The Basement, Especially Lower Sea Levels, It Is Possible To Develop A Musty Smell In The Home

Basements May Increase The Cost Of Flood Insurance As One Of The Core Metrics Used To Determine The Cost Of Insurance Is The Lowest Level Of Grade On The Property. For Most Cape Cod Style Homes, This Low Grade Level Will Be In The Crawlspace And Will Be Only A Few Inches Lower Than The Outside Grade. With The Basement However, The Lowest Level Of Grade Will Be Several Feet Lower Than The Outside. In The Eyes Of A Flood Insurance Company, This Presents A Greater Chance Of Flooding And May Increase The Cost Of Insuring The Property.

In Any Case, Basements Are More Prone To Flooding Than A Home Without A Basement On Long Beach Island. With Water Tables Being High (After All, LBI Is A Barrier Island), It Is Common To See Were Collected In The Basement. This Can Require A Sump Pump To Operate To Keep Water From Entering The Basement. Even With Protective Measures Taken It Is More Than Likely That A Basement Will Be Damp Which Can Lead To A Musty Smell Throughout The House.

Understanding Basements When Buying A Home In The Long Beach Island Real Estate Market

Up Until Now, I Have Commented Only On The Negative Aspects Of A Basement. While In My Opinion, A Basement Can Present Some Difficult Challenges, There Are Ways To Properly Utilize A Basement On Long Beach Island. There Are Ways To Seal The Floors And Walls Which Can Limit Or Eliminate Water Penetration. It May Also Be Possible To Fill In A Basement Completely, And Bring The Grade Up To The Outside. This Could Be An Inexpensive Fix To The Problem. Like Anything In The LBI Real Estate Market, There Are Pros And Cons To A Basement And Provided A Buyer Is Educated In How To Deal With A Situation, It Can Be Addressed With Minimal Difficulty. For More Information About The LBI Real Estate Market Or Basements On Long Beach Island, CONTACT ME And I Will Respond Right Away.

By : 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

Long Beach Island Real Estate Flood Insurance Costs 

What is the Cost of Flood Insurance for an Elevated Home on Long Beach Island

Long Beach Island Real Estate Flood Insurance Costs 

Long Beach Island Real Estate Flood Insurance Costs

Flood Insurance and Long Beach Island Real Estate

When Hurricane Sandy made landfall in New Jersey at the end of October 2012, many things changed. Large areas of coastal New Jersey, including Long Beach Island, were damaged, and that damage has taken a long time to repair. Thankfully, most of the shore areas were open for Summer 2013 and Summer 2014 is looking to be a very busy season. One positive impact of Hurricane Sandy is the amount of redevelopment and improvement being made to all the shore towns in New Jersey. With new construction taking place seemingly on every street and many older homes being raised, many home buyers in the LBI real estate market have been asking what is the cost of flood insurance for an elevated home on Long Beach Island.

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Long Beach Island Real Estate Flood Insurance Costs

Before we can discuss the insurance costs for an elevated home, we must first understand what determines the cost of flood insurance on Long Beach Island. Flood insurance is based on several factors, the most important of which is the elevation of the property. Contrary to the general opinion, not all homes need to be raised to avoid high insurance costs. The elevation of a property is determined by combining the natural ground elevation with the foundation of the building. With most ground elevations on LBI being no lower than 3-4 feet, most homes on Long Beach Island are only about 1-2 feet below the base flood elevation AT WORST.  An elevated home, meaning a home that is built high on pilings or on an extended block foundation, will see far less expensive flood insurance rates than a house at or below base flood elevation. The flood insurance cost for an elevated home on Long Beach Island will depend on the following:

  • The height above base flood elevation
  • The number of flood vents in the foundation
  • The flood zone

Most properties will see their best insurance rate 3 or 4 feet above base flood elevation. By building to the maximum height allowed, not only does the risk of damage to the property diminish, so too do the costs of insurance. The number of flood vents in the foundation also plays a significant role. There was recently a home for sale on Long Beach Island built well above the base flood elevation, however it had no flood vents. The insurance premium for this particular property was roughly $2,600/ year. If the proper number of flood vents were installed, that premium would drop to only $600/ year! Lastly, the flood zone plays a role. Most of Long Beach Island is in an “A” flood zone.  A property in a “V” flood zone will see a higher insurance rate as V zone properties are considered to be more risky. The good news is, V zones are primarily located along the oceanfront and parts of the bay front so for most buyers in the LBI real estate market, this will not be a major issue.

If all the conditions are met, meaning a house is elevated above base flood elevation, has the proper number of flood vents and is located in an A zone, the insurance rate for the year should only be in the $400-$600 range. Of course every situation is different and the only way to tell for certain what the cost of flood insurance in the LBI real estate market will be is with an elevation certificate. Regardless, the cost of insurance for an elevated house on Long Beach Island should be VERY affordable! For more information about flood insurance or the real estate market on Long Beach Island, feel free to contact me and I will be happy to answer any questions you have!

 By : 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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Why Land Value is Increasing on Long Beach Island NJ

Understanding Why Land and Knock Down Home Prices Are Increasing in the Long Beach Island Real Estate Market

Why Land Value is Increasing on Long Beach Island NJ

Why Land Value is Increasing on Long Beach Island NJ

Long Beach Island Real Estate Prices

The real estate market on Long Beach Island, like any market, is subject to high and low points. When home prices rose in the early 2000’s, so too did they rise on Long Beach Island. When the national real estate market and stock market fell in 2008, the LBI real estate market followed suit. That said, there are some important differences between the LBI real estate market and other markets around the country. The main difference is the summer rental market. Summer rentals provide a steady stream of income that helped to limit the number of short sales and foreclosures in the LBI real estate market (which in turn helped to keep prices more stable). At its core, land is what really determines property value on Long Beach Island. By examining land value, one can often predict the future of the LBI real estate market. Therefore, it is important to understand Why Land Value is Increasing on Long Beach Island NJ.

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Why Land Value is Increasing on Long Beach Island NJ

There are a couple of reasons that the overall value of land prices are on the rise. They are:

  • Hurricane Sandy eliminated many of the “older” homes on LBI
  • There has been a wave of new construction which increase the overall value of the LBI real estate market

Hurricane Sandy caused a great deal of damage to homes on Long Beach Island. Most of this damage was limited to older homes on the bayside or homes within the first block between Long Beach Blvd and Beach Ave. Many of these homes were either sold as storm damaged homes for the purpose of building a new home or the owners of these properties built a new home themselves.  These homes, for the most part, would have been viewed as tear downs in the LBI real estate market anyway so with their being sold, supply and demand dictates that prices will increase for other similar homes.

Hurricane Sandy also caused a massive wave of new construction on Long Beach Island. It seems every street on LBI is lined with new homes. Thanks to flood insurance payments, many homeowners were able to build a new home who may have otherwise not been able to do so. This new construction has a very positive influence on the LBI real estate market. Whenever there is a major investment in a real estate market, home prices will increase. At no point in the history of Long Beach Island has such a dramatic and far reaching redevelopment taken place so this signals a rise in prices. As the value of the overall real estate market rises, so too does the value of land in the LBI real estate market.

So, when trying to look at Why Land Value is Increasing on Long Beach Island NJ, one must simply look to Hurricane Sandy. Hurricane Sandy was the worst disaster to hit Long Beach Island, and one of the greatest motivators of change. For more information about Why Land Value is Increasing on Long Beach Island NJ, feel free to contact me, Nathan Colmer, and I will be happy to answer any questions you have!

 By : 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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