The Long Beach Island real estate market offers buyers some excellent opportunities and the LBI real estate market has remained strong even in this economic downturn. Buying opportunities still exist on LBI for several reason:
Buying real estate on Long Beach Island, like buying any investment, comes down to timing and price. With the available inventory and some patience, a buyer can purchase a great property for a great price and still be in a strong financial position. You can read more on some of my most popular blog postings about buying real estate on Long Beach Island here.
The Long Beach Island NJ real estate market is comprised of three major categories. They are:
In addition there are vacant parcels of land available, commercial real estate and interval ownership which is a form of timeshare on Long Beach Island. Each property type carries with it different lending rules and requirements so it is important to understand each type of property available in the Long Beach Island real estate market.
Buying a home in the LBI real estate market is a major investment and one that requires a complete understanding of the area and the current market trends. Here I will cover the basics of buying a home in the LBI real estate market, flood insurance and the different areas of Long Beach Island.
There are many types of mortgages and financing options available on Long Beach Island and it is important to understand the differences between them so as to not overpay in the LBI real estate market. There are loans available for second homes, investment properties, vacant land, storm damaged homes and construction projects as well as duplexes and small condominiums in the LBI real estate market. Please remember that I am a real estate agent and as such cannot give specific mortgage advice. The information I have provided is intended as a general overview of the options available to most consumers. It is best to contact a lender for specific terms and qualification information. I can provide the names and phone numbers of some of the lenders I commonly work with.
Once you have selected the right house to buy, you have to take into account what the additional fees will be with the purchase and or sale of real estate on Long Beach Island NJ. There are different costs associated with buyers and sellers in the LBI real estate market and it is important to understand what these costs are BEFORE you enter into a contract. Closing costs will vary greatly depending on the deal and the individual but the information below should help give you a general outline of what to expect. Note that while I provide an estimate of the cost associated with each line item, the actual cost will vary depending on market conditions and who you decide to hire.
Flood insurance costs should be a question every single buyer asks when looking to invest in the LBI real estate market. The costs of flood insurance can be very expensive, or they can be very low! It is essential that buyers understand how flood insurance is rated in the LBI NJ real estate market.
Building a new home on LBI can not only lower the cost of your insurance, it can also be a great long term investment! When a piece of vacant land or a tear down home is purchased for the right price and a home is built on budget a buyer should be able to realize immediate equity in the home and, if they chose to do so, sell for a profit. Building a new construction in the LBI NJ real estate market has a number of advantages over buying a ready built home. The basic process involves:
Home inspections are an important part of any transaction in the LBI real estate market. A home inspection will help to uncover defects in a house so Home Inspections and the LBI Real Estate Market need to be well understood. This is especially true in the second home market where a buyer may not be as familiar with the area and what the potential "trouble areas" are. This is a VERY important step in the sale process as it will safeguard your investment for a minimal out of pocket expense.
Since Hurricane Sandy there have been major changes to the Long Beach Island NJ real estate market that can impact your ability to purchase a property. Contrary to rumor, not every house on LBI needs to be raised so excluding the older style Cape Cods for this reason alone could mean you will miss out on a great buy. As a buyer in the LBI real estate market you should ask for, an elevation certificate for any property you are looking to buy on LBI, reports of damage from Hurricane Sandy along and repair bills/permits to see who repaired the damage and how.