Understanding the Void Between Renovated and Non-Renovated Homes in the Long Beach Island Real Estate Market
New & Used Homes in the LBI Real Estate MarketLong Beach Island Real Estate
Since Hurricane Sandy made landfall on Long Beach Island at the end of October 2012, the face of Long Beach Island has been changing. New construction can be found on almost every Street, and even the majority of older Cape Cod style homes and single level ranches have been renovated. This benefits the Long Beach Island real estate market in a number of ways. Overall, this improvement has helped to raise property values in the area and safeguard LBI against future storms. It is important for both buyers and sellers to understand New & Used Homes in the LBI Real Estate Market and how this will impact the property values.
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New & Used Homes in the LBI Real Estate Market
There are now four primary categories of homes in the LBI real estate market:
- New construction
- Traditional beach homes that have been renovated
- Teardown’s and vacant land
- Original homes that have not been renovated
New construction, or near new construction, tends to be the most valuable of all of home sales categories. Teardowns and vacant land are somewhat self-explanatory. These are older homes that are beyond the point of renovation, they may be storm damaged, and will be sold strictly for land value. The eventual fate of these locations is to have a new home built in their place. There is a great deal of value in the traditional beach home, for example a renovated Cape Cod, as it retains the natural charm of Long Beach Island but offers modern-day amenities. The hardest of all homes to sell on Long Beach Island are the original homes that have not been renovated, but are not quite a teardown. This is a rather broad category and can apply to the traditional Cape Cod’s that have seen no updates since they were constructed in the 1940s to 1960s, but it can also apply to homes built in the 1970s, or 1980s but are still original. These homes, for most buyers, will be viewed as a project and will require an investment capital to bring them up to date.
New and Used Homes on Long Beach Island
When buying or selling, it is important to remember the overall cost of the project. With a new construction or a renovated home, the expectation would be that there is little to no additional expense needed after the purchase. A teardown or vacant land is equally easy to estimate as a construction budget can be established before the time of purchase and the entire cost of the project can be assessed before offers are made. Buying a non-renovated home is more difficult. It is very common for there to be surprises when renovating home and it is the rather common to go over budget during a renovation. Therefore when buying a non-renovated home it is important to account for potential overages. When selling a non-renovated home, it would be best to perform some updates prior to listing. Even simple changes such as painting, changing flooring, swapping out kitchen cabinets, and resurfacing bathrooms can go a long way in selling a home. It can make the home more move-in ready for a buyer, and sell faster. In the event renovation is not possible, a seller must price the home to allow a renovation budget. For more information about the LBI real estate market or New & Used Homes in the LBI Real Estate Market contact me and I will respond right away.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
www.BuyLBI.com
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