Long Beach Island Real Estate Appraisals
The LBI real estate market has been witnessing a strong period of improvement. Since Hurricane Sandy made landfall at the end of October 2012, the entire scope of the real estate market on Long Beach Island has been changing. There has been an unprecedented wave of new construction, home elevation, and renovation taking place all over Long Beach Island. These changes are mostly positive as they increase the value of the overall real estate market on Island while at the same time making the area more storm ready. The unfortunate downside of so much change can be creation of the LBI real estate appraisal issues. While not common, appraisal issues can create difficulty for the Long Beach Island real estate transaction.
LBI Real Estate Appraisal Issues
There are three primary causes appraisal issues in the LBI real estate market. They Are:
- An out the area appraiser who does not understand the dynamics of the LBI real estate market
- A lack of relevant comparable home sales
- Over improvement to a home that is being sold
The LBI real estate market is unique in that there are variables that do not exist in many other real estate markets. For example, it is difficult for an appraiser who is not familiar with Long Beach Island to properly place the correct value on somewhat abstract concepts such as a view or distance to the ocean. While these factors greatly influence a buyers activity, they are hard to quantify in an appraisal, especially for someone who does not understand the area.
A lack of relevant comparable home sales can be another stumbling point creating LBI real estate appraisal issues. There are many unique homes for sale on Long Beach Island and with geographic limitations imposed on appraisers by the banks, it may be difficult to find a home that matches up. This can create a scenario by which the appraiser has to make adjustments to the comparable sales to compensate for the differences.
Lastly, some homes have been over improved in the wake of Hurricane Sandy. By this I mean the owners spend more on the renovations of the home finished product is worth. While this scenario is rare, this would make an appraisal all but impossible. For this reason, anyone who is looking to renovate or rebuilding the LBI real estate market should consult a real estate agent to make sure their renovations are in line with the market value of a home.
Buying a Home in the LBI Real Estate Market
Investing in real estate on Long Beach Island can be an exciting and profitable endeavor. Home values have remained relatively stable on Long Beach Island and it is difficult to put a price on the fun a family vacation home. That said, it is important to understand the current real estate trends to avoid any issues in a transaction, and especially in the appraisal process. For more information about the current trends developing in the LBI real estate market or LBI real estate appraisal issues, contact me and I will respond right away.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org