Buying a Fixer-Upper in the LBI Real Estate Market
- High Tides Digital Marketing
- Feb 7, 2020
- 2 min read
Long Beach Island Real Estate Fixer-Upper Homes
Buyers in the LBI real estate market are always looking for the best deal possible (as they should be). In the hopes of beating the market, many buyers will consider a home that needs work. Buying a fixer-upper in the LBI real estate market can offer some advantages if the right criteria is met. However, if the wrong type of home is purchased, a fixer-upper can prove to be a costly mistake.
When looking to buy a home that needs work in the LBI real estate market, there are a few fundamentals that should be followed. If they are not, it may make more sense to tear down and build a new home, which will have considerably more value on Long Beach Island.
Ideally, the home should be above base flood elevation
It is helpful if the house does not need major structural additions
The layout and design of a house should fit the general demands of the market
First and foremost, the house should be above base flood elevation, if at all possible. Homes that are below base flood elevation may have limits on what can and what cannot be done to the home before the house has to be elevated above base flood (which costs a lot of money). If you can find a small Cape Cod style home that is above base flood or an older contemporary on pilings, that is ideal. Secondly, if significant additions can be avoided, that is usually a good thing. Again, any buyer looking for a fixer-upper home should keep an eye on the overall investment to make sure it does not make sense to build a new home. Lastly, the layout of the house should fit what the market demands. Cape Cod-style homes are timeless and have proven to be suitable investments over and over again. Likewise, a reversed living contemporary that needs a cosmetic overhaul can make a lot of sense. Something along these lines can end up creating a strong value proposition in the LBI real estate market.
When looking to invest in the Long Beach Island real estate market, a buyer should consider the best use of their money. While buying and updating an older home may cost less, it will also result in a lower equity position relative to a new home. There is certainly a need and a market for older, updated homes. A buyer or investor needs to make sure the budget makes sense. If you have any questions about buying, selling 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
