Motivation for Selling a Home in the LBI Real Estate Market
- High Tides Digital Marketing
- May 9, 2024
- 3 min read
Common Reasons Home Sellers Will Sell Their Long Beach Island Home
The LBI real estate market is a seller's market with strong demand and low inventory. We do not see more homes come on the market because sellers enjoy their LBI home and/or benefit from the low cost of ownership with an inexpensive mortgage. Many of today's Long Beach Island homeowners purchased or refinanced their homes during the pandemic, taking advantage of historically low mortgage rates. However, since mortgage rates have increased over 2022 and 2023, some homeowners have postponed their plans to move or upgrade their LBI home to maintain their current low mortgage rate. These so-called "golden handcuffs" have caused fewer homes to come up for sale in the LBI real estate market and everywhere around the nation. That said, some sellers still need to sell, and understanding their motivation and the pros and cons of selling in today's LBI real estate market is very necessary.
Motivation for Selling a Home in the LBI Real Estate Market
All buyers and sellers in the LBI real estate market can benefit from understanding the motivation to sell a home on Long Beach Island. Sadly, death and divorce are among the most common reasons a homeowner will sell their home in the LBI real estate market. These two factors are clearly not impacted by mortgage rates, constituting a higher-than-expected percentage of homes on the market. A lack of use also ranks high on the motivation scale for selling a home. While finances can play a role in this scenario, selling might make the most sense if a homeowner finds they are using their beach house less than expected. Upgrading or downgrading is also a motivating factor, but this is where the mortgage industry can hold things back. If a homeowner has a loan, they will likely be less inclined to sell and take on a higher cost of ownership. Lastly, finances. While finances are seldom the reason for selling a home in the LBI real estate market, they are motivating factors for some. This is far less likely in today's market if an owner has a low fixed-rate loan.
Common Reasons Home Sellers Will Sell Their Long Beach Island Home
If you are looking for a change in location or require more space than your current house can provide, consider selling or looking into alternatives. If you own an older home on LBI, building a new home might make more sense than selling and trying to find another home. To determine what is right for you, it is advisable to collaborate with a trusted real estate professional who can offer advice and expert guidance throughout the process. An agent such as myself can give you an idea of market value, what the cost to sell would be, your net proceeds, and what you would be able to find in the current market. This gives you the necessary information to make a confident decision, including options for not selling your home and improving what you already own. For more information about Long Beach Island or about 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
