LBI Real Estate Misconceptions

LBI Real Estate Misconceptions

Common Myths About the Long Beach Island Real Estate Market

Selling Long Beach Island Real Estate



Most individuals, both on and off Long Beach Island, purchase or sell real estate infrequently. Many homes on Long Beach Island are generational meaning that they were inherited and never purchased or sold. 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 LBI real estate misconceptions that that should be debunked before considering buying or selling on Long Beach Island.

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 Misconceptions

There is a lot of information about the LBI real estate market-and much of it is personal opinion or just flat out wrong! Every situation is different and as such there will be some subjectivity. That said, there are some general misconceptions about the LBI real estate market that I often hear and should be discussed:

  • Flood insurance is expensive: While it is true that some homes on LBI will see an annual flood insurance rate around $3,000 and that some oceanfront homes are in the $10,000/year range, the vase majority of homes on LBI are far less. In fact, many homes will pay more for homeowners insurance than they will pay for flood insurance.
  • Every home on LBI needs to be raised: LBI is a rather high Island and as such, many homes, even if they are not on pilings, are well above base flood elevation. Generally speaking a Cape Cod style home on the bayside will need to be raised to obtain the lowest flood insurance cost. Before anyone raises a home though, take a good hard look at the numbers to see if it makes sense. Many times it does not.
  • You can’t make any money renting a home on LBI: LBI real estate can be a great investment. It just comes down to finding the right house in the right location. Building a home is a great way to beat the market and obtain not only a good rental return rate but also an equity position of around 20%-30% in the current market.

Buying and Selling in the Long Beach Island Real Estate Market


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. If you have any questions about these LBI real estate misconceptions or 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

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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