Overall, the real estate market on Long Beach Island has been largely improved. We are seeing a higher number of homes sell with a higher average and median sales price. This has to do with several factors including favorable interest rates, and abundance of new construction, and opportunities to purchase teardown homes as well as purchase move in ready properties. As encouraging as this activity may be, it is important to remember that number homes will fail to sell on Long Beach Island. Tracking homes that fail to sell in the LBI real estate market can be as important a metric to gauge as close and pending transactions.
There are three reasons homes do not sell in the LBI real estate market. They are:
First and foremost, the listing price of a home must be correct. Buyers in the LBI real estate market are well educated and it is easy to spot a home that is overpriced. It is important to take into consideration not only the sold listings, but also the active inventory when determining the right listing price for a home.
Improving the condition of the home can greatly increase the net proceeds from the sale in the LBI real estate market. Simple improvements such as paint, flooring, and other cosmetic changes can go a long way to selling a home quickly and for more money.
Even if the home is priced correctly and a condition matches the expectations of a buyer, without the proper marketing plan in place, a home will sit endlessly on the market. Marketing goes beyond simple advertisements, but also must include photographs, virtual tours, and other critical advertising tools.
The LBI real estate market is highly competitive and despite recent improvements in both pricing and activity on Long Beach Island, homes must be aggressively marketed to ensure a top dollar sale. Understanding how the Internet works and how it can be effective used to mark the home is a core component to a successful real estate transaction.
The marketing of a home must comprise a mixture of both Internet advertisements and conventional methods. At a minimum a marketing plan should include:
Print media campaigns
Regular open house (they actually still work on LBI)
Marketing to local agents
You can view my full marketing plan here to click the link below to learn more.
The benefits to a seller in vetting a potential buyer are more or less obvious…a seller wants to make sure the buyer can complete the transaction. There are a few ways to do this and the best method will largely depend on the terms of the transaction.
It is important to ensure that a potential buyer indeed has funds to be able to make this initial deposit including any closing costs. Sellers should make sure the money is liquid and not tied up in an investment that could lose value during the escrow period.
They approval or qualification letter is a well known instrument to determine the ability of the buyer to complete the transaction in the LBI real estate market. Requesting a qualification or pre-approval letter has almost no downside and it is worthwhile to request prior to entering a real estate transaction.
Lastly, nonrefundable deposits can, in certain instances, make a lot of sense. For example, if a home is being built as a speculative real estate investment and a buyer, prior to completion, requests changes which could impact the future marketability of a home in nonrefundable deposit is an excellent way for a seller to protect their interests.