Nathan Colmer | Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
If you need to selling your home on Long Beach Island in a falling or shifting market there are things you can to minimize LBI real estate equity loss-and even some ways that you can MAKE money in a falling market. Like anything it will come down to timing of both your initial purchase and how much you are willing to invest. I have listed below some simple (and some not so simple) ways to improve your property and help net as much money as possible.
Update your LBI home
Make it stand out by offering additional features
Build a new home
In a down LBI real estate market your house has to look its best. This can involve simple or major repairs. At a minimum you should consider painting, changing flooring, updating kitchens and bathrooms, etc. These small investments can produce a considerable return on your investment by seeing a higher sales price and/or less time on the market. I can work with you to come up with a list of updates and pair you with a contractor to perform the work keeping a close eye on the overall return.
Home-buyers that are looking to buy a home in a down market may need to be offered an incentive. Remember they will have many options to pick from. If your house is similar to others that buyer is considering offering some incentives can make the difference. For example a seller can offer a home warranty to cover unforeseen repairs. This is but one example of small and comparatively inexpensive offerings that can be made to help your home stand out. I can work with you to come up with a list of incentives that may help entice a buyer.
Obviously building a new home on Long Beach Island will require a significant investment of both time and money but this process, when handled correctly, can negate any loss and even has the potential to make money in the falling or shifting LBI real estate market.
In a stable or rising market a homeowner should see around 20%-30% instant equity when they build a new home. If we look back to the last great downturn the market dropped about 12%-15% on average. Therefore if you were to build a new home you should be able to negate almost any market loss and at worst break even. This prospect is all the more interesting when one considers that builders are probably slow in a falling or down real estate market on Long Beach Island. Therefore you may be able to negotiate a lower building cost.