Archive for LBI Real Estate
LBI Real Estate: Oceanfront Duplex and Bayfront for Sale on Long Beach Island
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Long Beach Island Real Estate: Bayfront
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Panoramic bayfront views, reversed living, open living, dining, kitchen bayfront area with skylights and cathedral ceilings, gas heat, central air, with fiberglass bayfront decks and vinyl railings, vinyl siding, deep water riparian grant with dock for large boat slip and one small boat slip.
Immaculate condition, inside and out, very well landscaped, oversized one car garage, lower level bedroom/office area w washer/dryer and pull out sofa bed.
Living area also offers a pullout sofa bed, and an upper bedroom with a walk in closet and full bath.
This adorable bayfront home was raised and completely gutted and renovated in 1994. It shows like new and has new carpeting, seashore teal green colors, is fully furnished, and truly turn key.
Real Estate Auctions: Be Informed
Posted by: | CommentsAs a buyer, you might be able to find a good deal at a housing auction but it is not without risks.
There are certain types of properties that are particularly well suited to be sold through an auction:
- Repossessed homes that require a quick sale to meet the former owner’s debts.
- Unique or individual properties that are difficult to value
- Properties that are hugely in demand.
- Any property for which it would be hard to find a buyer through the normal route.
As a buyer or seller, you should be aware of the following disadvantages of a housing auction.
Disadvantages of buying at a housing auction:
In some cases, you can’t withdraw a winning bid, even if you’re not able to secure financing later. Penalties for backing out of a winning bid can be steep, often as high as 25 percent of the bid amount or whatever the bid deposit may have been.
All properties sold at auctions are offered ‘as-is’ which means that if there are problems in the property, there is no recourse for you.
There is a possibility that you will be able to bid more than the worth of the property since you have not had the time for a thorough inspection of it.
This means that even if you’re the winning bidder, you may not get the house if your highest bid isn’t over the reserve price, which should be disclosed in advance of sale.
Auctioneers may add a buyer’s premium of 5 to 10 percent of the winning bid as their cut. Be sure and take this into account when you’re calculating the maximum price you’re willing to pay. Confirm who pays the auctioneer’s fee.
Auctions require a high non-refundable binder. Most auctions require high and non-refundable binder, which usually amounts to at least ten percent. This could be a bit risky especially when you are a novice in the real estate business.
You might also fail to see me you might be responsible for tax liens on your new property. Make sure the property has a free and clear title. You don’t want to buy something only to learn after the fact that you may be l you might be stuck with many unexpected debts, which could ruin your investment.
If you’re buying a property as an investment, rather than a residence, the mortgage approval process may require a much larger chunk of change up front.
Disadvantages for selling at a housing auction:
There is no guarantee your property will sell successfully at auction. Reserve price is not always met
The market value of your property is decided on the spot. You can never be sure of precisely how much you will get. The buyers at the auction may decide that your property is barely worth the asking price, or worse, much lower. This would result in your property being sold at a lesser price than anticipated, or even remaining unsold.
Marketing costs tend to be higher.
Selling at auction is not the cheapest way to sell your house. The expense of auctioning off your property can be more than whatever profit the seller might look to gain from the sale. It is more expensive and there are certain fixed costs involved, regardless of whether you manage to sell it.
Auctions concentrate the buying process into a short period of time. This may turn out to not be the ideal time to sell. More interest may be right around the corner.
Auction contracts are unconditional and can’t be subject to finance or inspection and may not suit some buyers.
Could be more difficult to sell if passed in as potential buyers have a better idea what others are prepared to pay and reduce their offer accordingly.
Results in a greater invasion of your privacy during the pre-auction phase. You must make the property accessible to surveyors who wish to value it for their clients. You may therefore find that your house is overrun with people in the weeks leading up to the auction.
You can set the reserve too low and sell too cheaply or too high and not sell at all.
Advantages of selling at a housing auction:
There is a potential for a bidding war and the property could achieve a much higher than expected value.
With an auction, you have the benefit of a “reserve price” so you will never
sell your home for less than you want.
The auction process is a lot quicker than the normal sale process. The bulk of the work is carried out before the auction and once you leave, the sale is virtually complete. Exchange of contracts happens before you leave the auction and completion will take place within 28 days.
Advantages of buying at a housing auction:
If someone makes the seller a higher offer the next day, they can’t back out of the deal.
Conclusion:
There may be some advantages for the home auction buyer and seller but it is very risky.
Sell your property using an experienced REALTOR. They have the knowledge and expertise to work for you at getting all your desired needs met in the sell of your property.
If you are interested in selling your LBI home, Click here to receive a complete market analysis of your Long Beach Island real estate.
References:
Barnegat Light Open Space Wish List
Posted by: | CommentsThe Barnegat Light Open Space Committee is an advisory board to Borough Council. The borough is the only municipality on Long Beach Island to have set aside a voter-approved tax of one penny per $100 of assessed valuation to be used for open space. The Open Space Fund will have $220,000 at the end of two years but more is available in matching funds from the federal/state/county level.
Barnegat Light has over 215 acres of open space. The Open Space Committee hopes to preserve the unique charm as a fishing community. The committee is looking more at development rights, for example, “keeping a marina a marina.” Marina preservation was high on the initial discussion list because many marinas today are being replaced by condominium development.
The committee will study the existence of open space within the borough and make a recommendation to Borough Council of those properties that meet the criteria for possible acquisition, whether by fee, easement, or developer rights. Acquired area could be designated as protected, conserved, or special use. The fund can also be used for historical preservation.
The next meeting is June 5 at 9 am and committee members will have a map in front of them to visualize the oceanfront and bayfront lots the borough already owns that might point to conservation of adjacent lots.
Long Beach Island Oceanfronts in Harvey Cedars
Posted by: | CommentsOceanfront homes in Harvey Cedars on Long Beach Island have new height exceptions. Refer to the ordinance below for details.
Price It Right The First Time
Posted by: | CommentsIf you are considering selling your Long Beach Island home during this sluggish market, you need to price your home right the first time!
A new listing should be correctly priced on the first day. A brand new listing is exciting, is shown more and, generally, SELLS FOR A HIGHER PRICE than older listings. Later, fair or not, prospective buyers begin to wonder why it hasn’t already been sold.
Price it right at the beginning, when most of your showings will occur. The prime marketing time occurs during the first few weeks. Make sure your home is priced right from the very beginning.
The Advantages of Proper Pricing
Higher Net Sales
Attract Better Offers
Better Response from Advertising and Sign Calls
Faster Sale
Increased Agent Response
Avoid Your Home from Becoming “Shopworn”
If You Overprice…
The right buyers won’t see it
The higher priced buyers won’t want it.
Buyers shop by price ranges… if your home is priced even $1 higher than their targeted price range, it won’t be on the show list.
Supply vs. Demand determines what your home is worth because it is only worth what someone is willing to pay for it. Homes priced below market value often will receive multiple offers, which will then drive up the price to market. Pricing strategies vary with the market. If it’s sluggish, price lower; if it’s active, price close to your expected selling price to stimulate competing offers.
Get a comparative market analysis (CMA) from a REALTOR®.
A CMA compares homes that are currently available and those that have sold in your neighborhood in the past year. The more similar the features — square footage, number of rooms, lot size, etc. — and the more recent the data, the more accurately it reflects the current market. Don’t confuse listing price with sold price — the most important factor in the CMA.
Sellers that are realistic and have a desirable property priced competitively will most likely succeed in a sale. Like many investments, the real estate market is cyclical, and we are now in a buyer’s market. The serious seller realizes the importance of being realistic and has a comparable listing price.
Long Beach Island-LBI Real Estate…Location, Location, Location
Posted by: | CommentsJoe Pop’s Shore Bar in Ship Bottom on Long Beach Island will have an outdoor dining area with a tiki bar this summer. The plans of the outdoor area include an eight foot-high bamboo fence to surround it in order to help protect neighbors from noise, lighting, and smoke. They will be open for business at 11 am and everybody must be out by 10 pm.
The owners think it is an opportunity to turn a less desirable area into something nice for the community and tourists. It is planned that the area will create a family oriented place by the beach to take the kids to get a quick bite to eat and relax for while.
That news got me to think about…
The phrase location, location, location and how it emphasizes the importance of resale value and the ability to appeal to the largest number of homebuyers possible.
Long Beach Island is a year round community of about 10,000 people but during the summer, population increases to over 100,000 with part-time residents and tourists.
Long Beach Island is a barrier island and all the homes are no further than blocks away from either the bay or the ocean. Even in a resort community, there are still better locations than others. Besides the obvious, oceanfront and bayfront homes, which are the most desirable and therefore, sell for the most money; there are some locations that have higher resale value. Towns on the north end of Long Beach Island have larger standard lot sizes so, of course, sell for more money.
When residential homes are next to commercial buildings that have late hours, it is inevitable that there is going to be a lot more traffic on the street, noise, late night car noise and pedestrians on the street loitering and therefore, usually sell at a lower price.
When most people buy a home, they don’t visualize that home to be the only home they will ever own. In the future, they know that they will want a different home, maybe a larger home or one in a different neighborhood. That’s why, location is so important if you plan on selling your home someday in the future.
If you know you are definitely going to re-sell your home then you should buy your home with location, location, location in mind. You need to consider resale factors when buying your initial home.
Long Beach Island is 18 miles long and Long Beach Boulevard runs down the length of the island and homes are either on the bay-side (west of Long Beach Blvd.) or the ocean-side (east of Long Beach Blvd.). Ocean-side homes have higher sale prices than bay-side homes. Homes with a view of either the bay or ocean demand higher prices than homes near commercial lots or the boulevard.
The homes next to commercial properties on Long Beach Boulevard will sell for lower prices than homes closer to the beach. Most homes on LBI are second homes and used for vacations and investment. Although, it may be undesirable to live year round in a home next to a commercial establishment, it could provide a nice rental income. It also may be a way to be able to afford a house at the beach.
Long Beach Island Oceanfront Real Estate – Coastal Area Facility Review Act (CAFRA)
Posted by: | CommentsIn many occurrences, I have buyers and sellers wondering how difficult it is to expand beachfront properties. Just going to your township is no longer the answer.
The state of NJ now requires a topological survey (elevation of the land/dune survey) and a completed C.A.F.R.A. (Coastal Area Facility Review Act) application.
When looking at most older oceanfront homes, I find that the dune has built up around them. If this is the case, the state C.A.F.R.A. limits expansion excessively. If keeping the existing structure, enclosing up to 400 square feet of existing deck area to the east, north and south of the home is the footprint limit (per floor). If there is an existing east deck, one can only enclose portions that are west of the east most part of the existing structure. If you are expanding over dunes and want to expand anywhere but to the west, part of the existing structure must be kept. You are also allowed to expand the footprint to the west of the existing structure by 750 square feet.
If expanding only to the west (or what C.A.F.R.A. considers the “shadow”) one is allowed to increase the footprint by 750 square feet and the existing structure can be torn down.
The state does not mind about new decks or pilings in the dune. Of course, proper setbacks are needed, as defined by your township.
For more information on C.A.F.R.A. laws and regulations, visit the reference below:
NJDEP Division of Land Use Regulation
New Jersey’s coastal permit program may affect where and whether you buy, build, or add on. In New Jersey and throughout the United States, coastal property is regulated to protect public safety and the environment.
Hasty, uncoordinated development along the New Jersey shore has already had an impact on this fragile ecosystem. Regulation is necessary to prevent pollution, destruction of vital wildlife habitat, increases in rainwater runoff, and destruction of the natural beauty that attracts visitors. Regulation of coastal activities is also necessary in some cases to prevent loss of life and property from coastal storms, erosion, and flooding.
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Living Green
Posted by: | CommentsSt. Patrick’s Day is on the way or as my children call it, the green holiday. If you haven’t taken steps to move toward a “greener” you, start this March. You may not find a pot of gold but you might see some savings.
Why go green?
There is a variety of reasons to go green, but most come back to supply and demand. We have a limited amount of resources available and more and more people using them up. If we want our future generations to enjoy the same standard of living we’ve experienced, we need to take action.
If you plan to remodel your home, consider green alternatives.
By making your home more energy efficient, you can have a significant impact on your utility bills—which in turn affects air pollution and your environment.
For instance, adding more blown insulation (such as cellulose), ensuring a correctly sized and annually serviced HVAC system, and sealing doors, windows and leaks with weather-stripping and caulking, can all save as much as 15 percent on utility bills, according to many experts (when compared to similar homes).
Include an Energy Star refrigerator, programmable digital thermostat, CFL or LED lights (instead of incandescent bulbs) and double-paned insulated windows, and you should see 30 percent to 50 percent greater energy efficiency!
“Not only does this save on utility costs, but it also means less coal is extracted and burned to create your electricity, which results in better air quality and less greenhouse gas emissions. Nearly half of all U.S. electricity comes from power plants that burn coal, according to the U.S. Department of Energy.”
Green Remodeling that you can do Yourself
Save energy –plant trees
Better caulking practice
Low- or no-VOC paints
Energy efficient home heating
Window replacement
Adding insulation
Adding a storm door
Installing a water heater timer and turn it down to 120 degrees
Installing a programmable thermostat
Efficient lighting
Install ceiling fan to improve energy efficiency
Install a low-flow shower-head and Water Sense faucet aerators
Install dimmer switches
Replace outdoor lighting with solar powered lights
You may need a contractor for the following green remodeling options
Green flooring
Tank-less water heaters
Eco-friendly carpets
Air sealing the garage
Soy spray foam insulation
Adding natural light with new window and skylight projects
What are the Benefits of a Green Home?
Green homes can offer significant financial benefits such as:
Proper insulation and air sealing will keep your heating and cooling costs lower, while efficient windows, appliances, lighting, and other household equipment will lower your electricity bills.
Green homes are built with high-quality building materials so they are more durable and require fewer repairs.
As the market demand continues to rise for green homes, investing in a green home now can mean increased value in the future.
Green homes often include the following additional benefits:
Health benefits: Green homes use toxin-free building materials, utilize natural ventilation, and have fewer problems with mold and mildew, just to name a few. Sustainable design and technology enhance a resident’s overall quality of life by improving air and water quality and reducing noise pollution.
Environmentally friendly: Green homes use less energy than comparable standard homes. Often, green homes use alternative energy sources, reducing dependence on conventional energy sources. Implementing green practices into your home or office can help reduce waste, conserve natural resources, improve both air and water quality, and protect ecosystems and biodiversity.
Use fewer natural resources: Green building uses fewer natural resources, and many of the materials used have recycled contents, conserving resources.
Savings: Want to make your dollar go further? Green systems and materials reduce energy consumption, which in turn reduce your energy bills. They also increase asset value and profits and decrease marketing time; making your dollar go further for longer.
What Helps Make a Home Green?
Listed below are just a few examples:
- Alternative power systems such as solar and wind
- Unique energy efficient building methods
- Hot water heating devices such as solar and solar thermal
- Water recycling methods
- Building insulation from recycled content
- Paints and stains that are no-voc
- Green Building Certifications – such as individual state run programs and the national LEED (Leadership in Energy and Environmental Design) Green Building Rating System™
Residential Demand
As the green building movement gains momentum, so does the consumer demand for greener properties. Two-thirds of consumers are paying attention to green homes and buildings; they recognize the link between green properties, cost savings and healthy living.
Consumers also understand the long-term investment and savings associated with greener homes.
By implementing green features and appliances into your home, you can stand out in a competitive market.
References and Read More Information:
U.S. Green Building Council’s Green Home Guide
Realtor magazine: Is Your Listing Really “Green”?
Do You Qualify For The Home Buyer Tax Credit?
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The $8,000 credit is in effect through the end of June. Homebuyers must sign a contract before April 30 and close by June 30. Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000.
The bill also made more homeowners eligible to claim the credit on their taxes. As well as first time buyers, those who have owned and occupied a residence for at least five years out of the past eight can claim a $6,500 tax credit if they close on a purchase by the end of June.
How it helps the economy
It provides opportunities to get into a home and stabilize the housing market during this period of low interest rates. People might be wondering whether they should wait for a better package to come from Congress but it is highly unlikely because then the value of the stimulus is gone. It is essential to get under contract by April 30 and close by June 30 to receive the tax credit.
A binding contract by April 30 can have contingencies. Both parties must agree and be signed by both parties with an absolute closing of June 30.
DETAILS OF THE TAX CREDIT
Who is Eligible and How Much?
First Time Buyers
10% of sale price up to $8,000
Must not have owned a principal residence for the past 3 years
Repeat Buyers
10 % of sale price up to $6,500
Must have occupied a residence for 5 consecutive out of the past 8 years previous to the date of settlement.
Annual Income Limitations for Individuals
$125,000 or less gets full credit amount
$125,001- $145,000 gets a partial credit amount
Above $145,000 does NOT receive a credit
Annual Income Limitations for Married Couples
$225,000 or less gets full credit amount
$225,001- $245,000 gets a partial credit amount
Above $245,000 does NOT receive a credit
Property Limitations
The property must be a single family residence – including condos and townhomes- that is the buyer’s principal residence.
The sale price of a purchased home must be $800,000 or less. If the sale price exceeds $800,000 no credit is given. The cap is absolute. Congress didn’t want a tax credit being given to someone buying a million dollar house.
Do You Have to Repay the Credit?
NO –unless you sell or move out within 3 years and if so, it has to be fully repaid.
Different Situations
A. A person wants to buy a new home but doesn’t want to sell their old home
Eligible –YES, if the new property is the primary residence for 3 years. There is no requirement that the old home has to be sold.
B. A person wants to buy a new home that costs less than the old home
Eligible –YES, there is no price requirement other than the $800,000 sale price limitation. The relative cost of the new home vs. the old home does not matter.
C. A person owns a home but has rented it out for the last 3 years. During that time, the person lived in a home that they don’t own and then decides to buy a new home
Eligible –YES, buyers with no ownership interest in a principal residence for the last 3 years are considered first-time buyers
D. A person hired a contractor to build a home that was already purchased but they don’t live in the home yet
Eligible –YES, as long as they occupy the home by the expiration of the credit. The date of occupation would be treated as the purchase date
E. The owner cannot qualify for the purchase of a home on their own, needs a cosigner and both names are on the mortgage
Eligible –YES for the homeowner and NO for the cosigner. The cosigner does not receive any part of the credit. The homeowner must use the home as the principal residence.
F. Two unmarried people purchase a home and file tax returns as single individuals
The annual income would not be considered a total. The total amount of a credit for a structure cannot exceed $8,000.
G. Two people are going to get married but they purchased a home when they were single. One person was a first-time home buyer and the other was not. They file the tax return as a joint return.
Both people must be 1st time home buyers to get the $8,000 credit. These situations are very complicated and careful analysis is needed. If the couple is married but filing separate returns they may be eligible for a credit of $4,000.
H. A person owned a home and occupied it for 5 years. That person marries someone who has never owned a home. They decide to sell their home and purchase a new home
Eligible –Yes, for a Repeat Buyer Credit. Neither is eligible for a first-time buyer credit even if filing separately. If either spouse has owned a home then for legal purposes, they both have owned a home.
I. A person closes on a 1st home in the tax credit time period and then marries someone who has owned a home before.
Eligible – YES, rules apply based on settlement date.
Some Additional Notes
Any transaction through family members is NOT eligible
If a purchaser dies within the 3 year residency requirement, the estate is NOT responsible to repay the credit.
Proof of the 5 year residency requirement can be in the form of property tax receipts, utility bills, property insurance records and property tax records.
Receiving the Credit
The credit is claimed on the tax return including documentation of the purchase and the IRS form 5405 for claiming the credit. The credit will be applied to your total tax liability. If the credit is more than how much you owe, you will receive a refund. The refund check may take up to 6-8 weeks.
If you already qualify for a refund, the tax credit is applied in addition to the tax refund amount.
The Internal Revenue Service (IRS) is responsible for implementing the credit. Full details can be found at www.irs.gov.
Free webinar “Distressed Sales and the Home Buyer Tax Credit” March 25, 3 pm EST click webinars
References:
NJAR, Get the Real Story on New Jersey real estate
