There is no question that a home in the Long Beach Island real estate market is a considerable investment. With home prices trending higher, both buyers and sellers are paying close attention to market trends and home prices. I am often asked how to improve the value of a home on Long Beach Island and this question usually leads to discussing the pros and cons of home additions in the LBI real estate market.
For a homeowner in the LBI real estate market looking to make a change, there are three paths they may take:
Renovating a home offers the advantages of a lower upfront cost to complete a project. It is important to understand the 50% rule, which simply states that if the home is improved more than 50% of its replacement value it must be raised above base flood elevation. While many homes on Long Beach Island are already above base flood elevation, this is a important number to be aware of. Building a new home in the LBI real estate market will be more expensive, but the end result will be worth more. In either case, renovating or rebuilding, it is important to not over improve the house for the location. By this I mean if the cost of the product plus the land value exceeds the current market value finished product, it would be advisable to reconsider the options. Selling a home is a complete exit from the Long Beach Island area, but in some cases this may be the best option. Renovating or rebuilding a home is a major undertaking and more than some people wish to become involved with. In these cases, it makes sense. Likewise, if the cost of improvements exceed the value of the finished home, selling is a viable option. Like anything, it is best to explore all avenues determine what is right for your specific situation.
Before making any considerable investment to a home in the LBI real estate market you should sit down and look at the current market trends to determine whether or not the investment can be recouped in the event you sell your home at a later date. Very often, it cannot be.
The exceptions to this are:
There are a few core areas the any LBI home renovation should focus on. They are:
The list above represents home renovation projects that are comparatively simple and should generate a positive return on your investment (assuming you hire a reputable contractor). One of the areas of most visible improvement in a home is the floor. Many homes on Long Beach Island have carpet which is perhaps the worst flooring option one can install on LBI. Carpet can retain the moisture in the air and hold a musty smell. For this reason, carpet can in many cases detract from the value of a home. Swapping out carpet for a more durable flooring option such as hardwood flooring for tile, while more expensive, can actually increase the value of a home and make itself more quickly in the LBI real estate market. The additional items noted above can give a home a more updated feel and be far more appealing to a buyer on Long Beach Island.