How to Value Hurricane Sandy Damaged Homes for Sale on Long Beach Island New Jersey
Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market
Hurricane Sandy and the LBI NJ Real Estate Market
Hurricane Sandy, which made landfall on Long Beach Island at the end of October 2012, significantly impacted the Long Beach Island area and the LBI NJ real estate market. Even though the entire area and the local market have both recovered, the impacts of Hurricane Sandy can still be felt and it is therefore important to protect yourself when Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market.
Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market
There are three primary areas to consider when searching for a home in the LBI NJ real estate market. They are:
- The cost of flood insurance for homes on Long Beach Island
- The cost of repairing damage to a home in the LBI NJ real estate market
- The value of a home on Long Beach Island relative to its condition and elevation
Perhaps the most publicized concern in the wake of Hurricane Sandy is flood insurance. While it is true that in some cases flood insurance will be very expensive, the majority of homes on Long Beach Island are either elevated above the current Base Flood Elevation or will see only a minimal increase to their annual costs. That being said, there are many homes that are below the current elevation levels. These homes are mostly located on the bayside, but it is important to understand flood insurance on Long Beach Island and realize that the costs of insurance can be prohibitive of purchasing a home in some cases.
If a home has been damaged by Hurricane Sandy it is important to remember to add in the cost of the repair to the purchase price of the house…and add 20%! Often times, renovations can far exceed the estimated costs so it is important to add in some money for unexpected items when trying to value the property. It is easy to look at a home that has been damaged and forget that the costs of renovation and possibly elevation will add to the total price. The additional cost could potentially exceed the market value of the house.
Above all else, when Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market it is important to make sure that the costs of the home do not outweigh the market value of the property. A home that is significantly below base flood elevation or a house that requires substantial renovation may in fact not be the best value in the Long Beach Island real estate market. The best values on Long Beach Island will come from a motivated seller. Sometimes that motivation will come from a home having been damaged by Hurricane Sandy and sometimes a better value can be found elsewhere. When Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market it is important to look at all aspects of the property, identify any potential problems and offer a price that protects the investment.
Buying and Selling Storm Damaged Homes in the LBI NJ Real Estate Market
Pricing is the most important aspect of any real estate market and especially true in the Long Beach Island real estate market. There are many homes for sale on LBI in many price ranges but when buying or selling a home on LBI, one must look at the market as a whole to remain competitive. Sellers must price their house in line with the market to attract attention. Buyers too must examine the market and make sure the house is not overpriced and that their investment is secure. Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market makes this harder as there are many more aspects of a property that must be taken into consideration. For more information about Shopping For Storm Damaged Homes in the LBI NJ Real Estate Market feel free to contact me, Nathan Colmer and I will be happy to answer any questions you have!
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
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