Common Misconceptions in the LBI Real Estate Market
It is a fair statement to say that most individuals purchase or sell real estate infrequently. In fact, most data points to a real estate transaction taking place approximately once per decade for most people in United States. With such infrequency, it is no surprise that there are a number of real estate misconceptions that can lead to costly mistakes. There are some common Long Beach Island real estate myths that I frequently hear and unfortunately this can lead to a very expensive mistake in the LBI real estate market.
Common Long Beach Island Real Estate Myths
There is a lot of data circulating on the Internet about the real estate market on Long Beach Island. Unfortunately, much of this information is in accurate! Some of the most common misconceptions have to do with:
Flood insurance in particular is perhaps the most misunderstood concept in the entire Long Beach Island real estate market. There are many rumors that state the cost of flood insurance will be $10,000 for every home on Long Beach Island. This is simply not the case and in fact most flood insurance polices for homes in the LBI Real estate market average between $700 per year and $2000 per year. The cost of flood insurance has to do with the elevation of the property and the unique characteristics of each home. It is certainly not fair to make a blanket statement for all homes on Long Beach Island but rather every home must be taken on its individual merits. Long Beach Island has a high elevation and therefore most homes meet or exceed the base flood elevation requirements. In tandem with the misconceptions about flood insurance, there are a great number of myths concerning house raising. There are those who will tell you that every home on Long Beach Island needs to be raised on pilings. Again, nothing could be further from the truth. There are many homes, especially those located on the Oceanside areas, which are well above base flood elevation even if they are currently on their original block foundation. Lastly, there are many misconceptions about market pricing. There are many sellers who feel it is appropriate to price it home to leave lots of room for negotiation. Unfortunately, this will make a house appear overpriced and will greatly diminish the number of showings that will take place. On the opposite side of the transaction, there are many buyers who feel they should lowball a property to try and obtain a better sales price. In both situations, the result can be very costly. It is far better to pricing home or to make an offer well in line with the comparable market sales. Homes on Long Beach Island can be evaluated based on their differences and similarities to others that have recently sold and the stater can be used to substantiate any offer for any listing price. Making an intelligent offer based on comparable sales will greatly increase the chance of the house being sold and successful transaction in the Long Beach Island real estate market. When considering a transaction in the LBI real estate market it is important to make sure you have your facts straight and a thorough understanding of all aspects of the transaction. For more information about common Long Beach Island real estate myths , contact me and I’ll be happy to answer any questions you have.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org
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