Long Beach Island Real Estate Comparable Sales

Long Beach Island Real Estate Comparable Sales

Comparable Sales in the LBI Real Estate Market

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

Long Beach Island Real Estate

Long Beach Island real estate comparable sales, also called “comps“, are recent sales that can be used to determine the value of a home that is being bought or sold. The most common application for comparable sales is either a comparative market analysis (CMA) or for use by an appraiser. There is no better way to determine the value of a home in the LBI real estate market than by evaluating comparable sales to the subject property (the property being bought or sold). All buyers and sellers in the LBI real estate market should familiarize themselves with these comps before entering a transaction.

By : Nathan Colmer | 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

Long Beach Island Real Estate Comparable Sales

Comparable sales in the LBI real estate market is, in some ways, a misnomer. There is no such thing as a “true” comparable sale. Every home on Long Beach Island is unique. With small differences having the potential to make massive changes in value, an LBI real estate agent or appraiser must be familiar with both the market in general and with specific sales to do his or her job correctly. For example, a real estate agent could be asked to evaluate a home built in 2015 with four bedrooms, 2.5 bathrooms, and a great location, one off the beach. There could be another, nearly identical home that was recently sold but had an unobstructed view of the ocean. This small difference can be a six-figure difference in the sales market. If the agent who is being asked to evaluate the home’s value is not aware of this view, they will be unable to adjust for it properly. This can lead to overpricing or underpricing, neither of which is beneficial to the buyer or seller. To be useful, a comparable sale must be adjusted to the subject property. The significant points to consider are:

  • Location
  • Age of the home
  • Bedrooms, bathrooms, etc.
  • Total square footage of the house and decks
  • Views and if the views can be blocked
  • Overall condition of the home

A comparable sale can be adjusted to fair market value for either a comparative market analysis or an appraiser by modifying the above criteria to a subject property.

Comparable Sales in the LBI Real Estate Market

Comps in the LBI real estate market need to be understood by buyers, sellers, and investors. Without a clear and detailed view of the market, it is all but impossible to know if a home is priced correctly. Above all else, the home’s price determines how quickly or slowly it will sell on Long Beach Island, so knowing what determines the value and properly using comparable sales is an absolute must! If you have any questions about buyingselling 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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