A Look at Long Beach Island Real Estate Market Liquidity
Selling LBI NJ Real Estate Is Like Selling StockLong Beach Island New Jersey Real Estate Market
Understanding the value of a home in the LBI real estate market may seem daunting. There are a variety of locations and home styles which can make it hard to pin down a general price point for a home on LBI. It is a far better approach to view all homes on LBI as having their own market relative to their individual characteristics. In this fashion, the LBI real estate market is very similar to the stock market and a similar valuation approach can be taken. Therefore, selling LBI NJ real estate is like selling stock in the stock market!
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How Selling LBI NJ Real Estate Is Like Selling Stock In The Stock Market
While Long Beach Island is the source of many memories and fun times for families, it is important to remember that selling real estate on Long Beach Island is a business. When a home first goes on the market (similar to an IPO of a stock) it should undergo a serious evaluation to help understand the liquidity of the asset (the home).
- Factors such as location, condition and flood insurance will be used to value a home much as earnings, assets and debt will determine the value of a stock.
- Interest rates will help determine liquidity because as interest rates rise, the buying power of a buyer decreases.
- The overall condition of the economy helps determine if a potential buyer will in fact buy a house or if he/she will rent a house. This is similar to when investors flock to safer investments such as bonds or gold when the economy is performing poorly.
The price of a home (or a stock) will have a strong impact on the liquidity of the commodity. Take for example an imaginary stock, ABC Company. If ABC Company traded 10,000,000 shares of stock at prices between $21.00 and $23.00, it is fairly easy to determine the sale price of 1 share of stock. If someone wanted to sell a share of ABC Company and was asking $30.00, they would have very few takers! The same is true for the real estate market on Long Beach Island. A home must be priced in line with other similar homes to attract attention and offers on the property! For more information about buying and selling real estate on Long Beach Island, feel free to contact me, Nathan Colmer, and I will be happy to answer any questions you have!
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