PROPERTY TYPES IN LONG BEACH ISLAND, NJ
Everything You Need to Know About Property Types on Long Beach Island
Single Family Homes Between $750,000 and $1,000,000
Single-family homes priced between $750,000 and $1,000,000 are a significant part of the LBI real estate market, typically representing about one-fifth of all available listings. This price range offers a mix of newer homes with modern amenities, spacious bayside new constructions, and older, renovated Cape Cod-style homes closer to the beach. With strong market activity in recent months, buyers in this bracket have a range of opportunities to find a home that suits their needs.
At any given time, there are usually between 120 and 150 homes available in this price range, reflecting the high demand for well-located, updated properties. Whether looking for a move-in-ready home or an investment property, buyers will find plenty of options in this dynamic segment of the Long Beach Island real estate market.
Single Family Homes For Sale on Long Beach Island Between $750,000 and $1,000,000
There are a few characteristics of homes in this price point all buyers should be aware of. They are:
It is possible to purchase a new construction elevated at or above the current base flood elevation in this price point
Some homes in this price point can be difficult to sell as they fall in between a tear down and a new construction
This price point is attractive to many buyers as it will avoid the "mansion tax" imposed by the State of New Jersey
There are some fantastic new construction properties available in this price point. It is possible to purchase a fully completed new home on the bayside with 4-5 bedrooms and views of the water well under the $1,000,000 price point. Likewise, you can purchase similar new construction on the oceanside (usually without a view) in the same price point. These homes, which are elevated above the current base flood elevation, will see a dramatic savings on flood insurance. Most new homes have an annual insurance rate of only $400-$600! Compared to an older Cape Cod which may see an insurance rate of $3,000-$4,000, the savings in flood insurance alone can increase your buying power in the real estate market on Long Beach Island.
There are some single family homes in this price point that fall into a "grey area" and can be difficult to sell. Typically, these homes will have been built in the 1970's or 1980's and elevated on pilings but lack the amenities of a new home. These older contemporary properties are not tear downs, but they will often need "big ticket" upgrades such as a new kitchen and bathroom or needing air conditioning. The renovation bill for these improvements can add up quickly! These homes can produce an excellent opportunity to negotiate the sales price and personalize the house to your taste, but you must be willing to undertake the project.
The State of New Jersey imposes a "mansion tax" or "millionaires tax" on all homes sold over $1,000,000. This tax, which is paid by the buyer, equates to 1% of the total purchase price. By staying under the $1,000,000 price point, a buyer is not required to make this payment to the State of New Jersey.
REAL ESTATE TIP: When searching for single family homes on LBI up to $1,000,000 be sure to search a little higher than $1,000,000. Many sellers in this price point are aware they will have to sell under $1,000,000 to avoid the mansion tax and therefore you may find a higher degree of flexibility on the part of the seller than one would normally expect.