Selling a House in the Long Beach Island NJ Real Estate Market
The LBI NJ Real Estate Market
Selling a house on Long Beach Island can often be a difficult and emotional decision. For many, a home on LBI has been in the family for a very long time and has many wonderful summer memories attached to it. With the average price of a home in the LBI real estate market being around $900,000-$1,000,000, it is important that a seller maximize the amount of money that they will realize from the sale of their home. This, however, can sometimes be difficult to determine which is why it is important to Focus On The Net Proceeds When Selling A House On Long Beach Island New Jersey.
Closing Costs and the Net Proceeds of Selling a House on Long Beach Island NJ
When selling a home in the LBI real estate market, it is easy to overlook some important factors that will impact your “bottom line” and could mean you walk away with less money than you should! A few examples are:
- Additional carrying costs incurred from the house taking too long to sell
- New Jersey and Out of State transfer taxes and other closing costs
- Home inspection items and other contingencies that
When selling a house, the obvious objective is to put as much money in your pocket as possible. It may seem obvious that the best way to do this is to price your house as high as possible. Surprisingly however, this can often have the opposite effect and end up netting a lower profit. When looking at past home sales in the LBI NJ real estate market, a clear pattern exists that shows homes that are overpriced will not only sell for less money, they will also spend far longer on the market. It is this additional time spent on the market that can often times end up hurting the profit realized by a seller. Every month expenses such as taxes, sewer bills, water bills, insurance and mortgage payments will chip away at the amount of money you will net from selling your house whereas if the house were priced aggressively, it would not only sell for a higher price, it would also eliminate these additional carrying costs.
Another often overlooked expenditure are closing costs. There are the somewhat expected fees of an attorney, real estate commissions, state filling fees, etc but the New Jersey transfer taxes are often forgotten when negotiating a transaction on Long Beach Island. The New Jersey State Transfer tax is based on the sales price of the house and is calculated on a sliding scale as follows:
- $2.90/$500 of consideration not in excess of $150,000;
- $4.25/$500 of consideration in excess of $150,000 but not in excess of $200,000;
- $4.80/$500 of consideration in excess of $200,000 but not in excess of $550,000;
- $5.30/$500 of consideration in excess of $550,000 but not in excess of $850,000;
- $5.80/$500 of consideration in excess of $850,000 but not in excess of $1,000,000;
- $6.05/$500 of consideration in excess of $1,000,000.
There are discounts for senior citizens, disabled persons and other conditions that may apply. In addition, New Jersey charges a flat 2% tax to out of state residents based on the sales price. Therefore, a $700,000 sale will be changed $14,000 if the owner of the house lives in another state.
Home inspections are perhaps the most worrisome part of the transaction as many deals can fall apart due to unknown defects present in the house. After a home inspection has been completed, it is common for the buyer to present the seller with a list of safety or structural items that should be corrected. Usually the request will entail either a credit towards the repair or the seller will fix the problems. Depending on the problems, this bill could be very high (or very low). In either case, it is important to budget some money towards this when calculating the final amount of money you intend to walk away with!
Selling in the LBI NJ Real Estate Market
The LBI real estate market has seen a major increase in activity but it is important to remember that buyers are very well educated and have a lot of information at their fingertips. A house must be priced well and marketed to show that it is special among other homes for sale in the LBI NJ real estate market. I employ a number of tools including virtual tours, floor plans broker’s open houses, mass postcard mailings, staging and professional photography. If you would like more information about how to Focus On The Net Proceeds When Selling A House On Long Beach Island New Jersey 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 | firstname.lastname@example.org
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