Value Factors in the Long Beach Island Real Estate Market
Click here to search all homes for sale in the Long Beach Island NJ real estate market
Five Factors that Determine Value in the LBI Real Estate Market 
Five Factors that Determine Value in the LBI Real Estate Market 
Five Factors that Determine Value in the LBI Real Estate Market
Long Beach Island Real Estate
The LBI real estate market has many options available for sale. While the market is primarily comprised of single-family homes, there are condos, duplexes, vacant land, commercial properties, and even timeshares (called interval ownership). Understanding what creates value in the Long Beach Island real estate market is one of the most critical steps to buying or selling a home in the local market. Without a clear understanding of the local trends that influence price, making a costly mistake is very easy.
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
LBI Real Estate Waterfront Update December 2019
Below are the top five factors that determine value in the LBI real estate market.
- Proximity to the beach
- Towns on LBI
- Lot size
- Condition and age
- Market conditions
The first on this list may seem rather obvious and can also be summarized as location. Oceanfront homes will be the most expensive real estate on Long Beach Island when all things are equal. Homes that are further from the beach or have some negative associated with the location (for example, is located behind a restaurant or on the main road) will generally be worth less. Secondly, the area of LBI can have a significant impact on the value of a home. Some areas have smaller lot sizes and greater density, thereby reducing their value. Other places have a larger lot, fewer houses, and more privacy, increasing the purchase price of a home.
For this reason, you can see two very comparable properties have very different sales prices simply due to where they are located on Long Beach Island. The lot size is the next contributing factor. The size of the lot not only influences price based on the density of the area but also will determine how large a home can be built. The land is always the most valuable part of an LBI real estate transaction, so it stands to reason that the larger the lot, the more valuable the sale will be. Condition and age will undoubtedly play a role as well. A newer home with more amenities will be worth more, but there are other differences to consider. Zoning laws can change all the time on Long Beach Island, which can impact views, height, setbacks, etc. Lastly, the overall market affects the value of a home in the LBI real estate market. It is impossible to time the top or bottom of the market, but some trends can help. We see regular patterns of higher and lower inventory levels and recurring patterns when sellers are more or less likely to reduce their prices. By knowing this and timing it to some extent, the value of a home on Long Beach Island can see a massive swing.
Value Factors in the Long Beach Island Real Estate Market
Buying a home in the LBI real estate market is a large investment. It is one that should only be undertaken when you, as the buyer, has a clear understanding of the market and what determines value. Without this understanding, it is easy to make a mistake in the Long Beach Island real estate market. 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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