Understanding the Cost of a Home Vs. the Price of a Home in the LBI Real Estate Market
Click here to search all homes for sale in the Long Beach Island NJ real estate market
Cost vs. Price in the Long Beach Island Real Estate Sales Market 
Cost vs. Price in the Long Beach Island Real Estate Sales Market 
Cost vs. Price in the Long Beach Island Real Estate Sales Market
Long Beach Island Real Estate
At present, we see record-low inventory levels and record-high levels of demand. This has created a seller’s market. Due to COVID or coronavirus, the current economic climate has also caused interest rates to fall to levels never imagined. When looking to purchase a home, buyers have to understand Cost vs. Price in the Long Beach Island Real Estate Sales Market. While prices have risen, the cost of ownership has fallen. While this is good news, there are a few additional layers that need to be understood, including:
- Additional ownership costs like flood insurance
- What determines value on LBI for long term appreciation
- How will you handle the sale of a home in the future?
By : 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
Cost vs. Price in the Long Beach Island Real Estate Sales Market
While a mortgage will constitute a significant expense in the LBI real estate market, additional expenses should be budgeted. Flood insurance is the best example I can offer. The cost of insurance can vary significantly, with many policies being under $1,000 and some being over $10,000! With such a range, understanding the price of the home is vital. Likewise, understanding what drives value will help increase the chances of the house appreciating in the market. I have written many articles on my website about the factors that determine the value, and this is an essential step needed for all home buyers on Long Beach Island. Lastly, though, is the cost of the home when you sell. While the argument is very valid that while prices have risen, the cost of owning a home has fallen. While this is not a perfect balance, the lower interest rates help offset the home’s higher sales price. The point buyers need to keep in mind is that this only lowers owning the home. When the time comes to sell the house in the future, today’s higher price will become very real. Therefore, all buyers must account for a potentially longer holding time, allowing the market appreciate to work its magic.
Understanding the Cost of a Home Vs. the Price of a Home in the LBI Real Estate Market
We are in a changing market, and now, more than ever, buyers have to be very careful. There are some excellent opportunities in the current market and some very overpriced homes. By finding good value and taking advantage of the current interest rates, buyers can make this market work in their favor. Cost vs. Price in the Long Beach Island Real Estate Sales Market, all buyers need to understand, and I am happy to help work you through it. If you have any questions about buying, selling or investing in the LBI real estate market, please do not hesitate to contact me.
By : Nathan Colmer |LBI Real Estate Agent | 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
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