How To Prepare Yourself When Buying LBI NJ Real Estate

Avoid Mistakes When Buying A Home On Long Beach Island New Jersey

How To Prepare Yourself When Buying LBI NJ Real Estate
How To Prepare Yourself When Buying LBI NJ Real Estate

Buying LBI Real Estate

Buying a second home in the LBI real estate market is exciting…and nerve racking! LBI real estate requires a substantial investment and it is very important that all home buyers understand both the market and the dangers of buying a home on Long Beach Island. While every buyer and every real estate transaction is different, there are a few steps you can take to prepare yourself when buying LBI NJ real estate.

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How To Prepare Yourself When Buying LBI NJ Real Estate

A simple Google search will turn up countless advice pages and real estate website with tips on getting ready to buy a home. The problem is, most of this advice is generic and does not meet the specificity of an individual real estate market. While the generic advice of getting a mortgage pre-qualification, signing up for listing alerts, etc may still apply on Long Beach Island, there are unique circumstances in the LBI real estate market that should be understood by all buyers. They are:

  • Understanding the value of each property location on Long Beach Island
  • Understanding how flood insurance rates are determined on Long Beach Island
  • Understanding the cost of building a new home in the LBI real estate market and how it impacts value

There are several different property locations on LBI each with their own individual attributes. For example, an ocean block home will offer an easy, short walk to the beach, but it will be more crowded with both foot traffic and cars parking in front of the house. A home on the bayside will be a longer walk to the beach, however it is very quiet on the bayside. If you want privacy, it may be worth the additional walk to the beach (which in most cases is only a couple of minutes).

Flood insurance can have significant impacts on your ability to buy and your ability to afford a home in the LBI real estate market. Revisions to the flood insurance reform act of September 2012 now allow for a flood insurance policy to be assumed at the current rate paid by the owner. In some cases, this will be much lower than the ACTUAL cost of insurance. If a policy is currently only costing $1,000/ year but the true cost is $5,000, you have to account for this additional expense in your budget. Understanding how flood insurance is rated is essential to any purchase at the New Jersey shore. Understanding the costs of insurance can help you identify a good deal quickly and allow you to act intelligently.

Even if you yourself are not considering building a new home on Long Beach Island, it is important to understand the building process. New construction allows for an almost immediate profit in the LBI real estate market and it is a very common practice, even before Hurricane Sandy. What most buyers do not realize is that building codes and heights have changed. Now, homes are allowed to be 34 feet high, which h is 2 feet higher than previously allowed. What this means is a home, even a newer home, could have a view taken away if a new house is built in the way. It is important to be aware of this possibility when buying a home on Long Beach Island so you do not pay for a view that could be taken away! For more information about buying a home 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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