The 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.

Oceanfront homes in Harvey Cedars on Long Beach Island have new height exceptions. Refer to the ordinance below for details.

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If 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.

Joe 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.

Are you trying to do your part to protect our resources?

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

NAR’s Green Resource Council

Energy Star

Realtor magazine: Is Your Listing Really “Green”?

Listed Green

HGTV PRO Green Building

 

In today’s economy, it’s understandable that people and businesses are trying to cut expenses they don’t need. Some homeowners might think they don’t need a realtor to sell their home.  Homeowners think that they will save money because they will avoid paying realtor fees.

Time wasted is money lost. An experienced realtor provides the best exposure possible in this highly competitive market. You are paying a realtor to promote and advertise your home.

Your realtor is responsible for…

• advertising (using postcard mailings to clients, networking on the Internet, syndication to numerous search engines, newspapers and magazines ads)
• taking photographs of the property
• making a virtual tour of the property that can be viewed on the Internet
• phone calls
• verifying qualified buyers
• appointments
• communicating with lawyers
• handling negotiations
• writing contracts and paperwork
• property showings with prospective buyers
• provide feedback and advice.

 

Read How Willy Kahl will market your Long Beach Island Property

 

There are more homes for sale now and it is imperative to list your property at the correct selling price to get the right traffic right away; and a realtor will do a comparable market analysis to determine the effective selling price.

A realtor is motivated to sell a home at the highest possible selling price…it’s their job.

A realtor knows the community and the market.

When a property is listed in MLS, realtors get an update and all the realtors in the area now know your home is available. Realtors have their own buyers that they work with waiting for the right property to come on the market. Your property might be the one. If you don’t use a realtor, you lose the benefit of the exposure to those buyers working with realtors. You may have missed your opportunity to sell your home.  A realtor can’t show their buyers your home if it is not in the MLS. A realtor will provide better and faster exposure of your home.

 

If you decide to sell your home on your own without a realtor and you are one of the fortunate few to get a signed contract, you are not in the clear yet. There are many steps between signing a contract and closing the deal and an experienced realtor is able to coordinate the responsibilities of appraisers, loan processors, attorneys, and inspectors to avoid Post-Contract Pitfalls.

Read further about the value of a Realtor

 

Please share your thoughts or experience in the comments below.

Let’s take a look at the statistical anaylsis of data and general trends to answer the question.

Statistical Analysis of 2009 LBI Oceanfront Single Family Home Sales

The average sale price of oceanfront property on Long Beach Island in 2009 has decreased in value approximately 8% since the peak years of 2004-2006.  With limited sales activity and a low supply/demand ratio, it appears the value of oceanfront property may continue to decline. The most desirable and competitively priced waterfront homes will sell.   Those that are overpriced will not.

The types of oceanfront properties that have sold vary by year, causing the sales market to fluctuate since values are not based on sales of comparable oceanfront properties.  For example, in 2006 many oceanfront homes that sold were new construction.  In 2007, the majority of oceanfront properties that sold were teardowns, creating a decline in values. New construction holds a high value as opposed to a building that will be torn down, which holds zero value. 

 In 2008, the sale of oceanfront property in North Beach, Loveladies, and on oversized lots in Barnegat Light increased the average values for two reasons.  The majority of homes were newly constructed and the north end location also holds the highest land values on LBI.  These sales created a higher than average sale price for oceanfronts than expected in 2008. 

Once again, in 2009, we have North end properties selling.  Surf City is breaking the curve for oceanfronts in the center of LBI (no single-family sales in Ship Bottom and Brant Beach).  With only fourteen oceanfront sales in 2009, it is hard to see what values have really done.  With so many sales in Surf City, the average sale price for 2009 was higher than normal.

 

Statistical Analysis of 2009 LBI Bayfront Single Family Home Sales

The 2009 average bayfront sale price appears to be showing us how much we have actually depreciated since the peak years of 2004-2005.  Our average price has declined approximately 20% since those peak years.  The volume of sales during 2009 was consistent with those of 2008 on bayfront property. 

For property on the bay, the data shows the average sale prices each year are as follows: $1,575,763 in 2004, $2,413,619 in 2005, $1,718,470 in 2006, $1,986,444 in 2007, $1,971,347 for 2008, and $1,669,938 for 2009. 

 

Conclusion

 

Most Buyers are excited that they are able to afford a vacation home on LBI and are more likely to purchase a property if the Seller is asking a fair price reflective of the present day market value. Sellers may be more motivated and negotiable since the number of oceanfront homes for sale is increasing.

Waterfront property is very desirable and also very limited. Long Beach Island value is in the land and with the decline in real estate sales comes an adjustment in land values.  The real appreciation and depreciation lies in the value of the land.

The  2009 LBI Statistical Data and Charts demonstrates that the Long Beach Island Waterfront Average Sale Prices increased overall over time including the recent decreases reflective of the economy in these past several years.

A good investment does not come without risk. Investments are made to be able to enjoy the benefits they provide and also to be able to pass on the advantages to family in the future. If an investment today in Long Beach Island Waterfront real estate enables you and your family years of enjoyment on LBI and provides the gain from the initial investment that can be rewarded to family in the future then the risk was worth it.

If you are fortunate enough to have owned your home for a number of years, you will certainly see a significant profit from your initial investment. 

Please share your thoughts and experience in the comments below. 

With six more weeks of winter – Happy Groundhog Day! – Use some of the following tips to sell or buy your LBI home in this winter season

If you are selling a Long Beach Island home…

• List your LBI property today-the buyers that are looking in the winter are serious buyers.
• Price to sell it-trust your realtor and the comparable market analysis
• The deal may go quicker (loans, inspections, etc.) in a slower winter market and your buyer will be anxious to get in before summer to enjoy their new beach home or get those rentals secured if it is an investment property.
• Brighten up the house –keep windows uncovered –people want to see that view when they walk in especially if you are selling an Oceanfront or Bayfront home! Don’t hide one of the most important reasons of buying a house at the shore-the view.
• Most homes on LBI are second homes (vacation or investment homes) and homeowners close up their homes in the winter so, make sure the seasonal clutter is cleared away. Don’t pile up all the patio furniture in your living room especially in front of windows. Give the house a good cleaning before closing it up for the season.
• This season on Long Beach Island, there already has been several snowfalls so, when it snows, shovel the sidewalk, walkway, and steps and put sand or salt down to prevent ice from forming.
• Place a doormat by the front door so mud and snow are not tracked through your home.
• Hang summer pictures to create the mood-display beach photos, spectacular Long Beach Island sunrise and sunset photos, photos taken anywhere on LBI to create and promote the wonderful LBI community.
• If your house has been on the market for a while, try a fresh coat of paint and fun seashore décor to create a “life is better at the beach” attitude.
• A furnished home helps people visualize the rooms better.

 

If you are buying a Long Beach Island home…

• Buy your LBI property today-you’ll have the house to enjoy for the summer or secure summer rental income for your investment property.
• There may be less competition from other buyers before things pick up in the spring.
• Lower prices may be negotiated if you find a motivated seller and because there are fewer buyers on the market today.

Refer to my Long Beach Island Waterfront Supply vs. Demand article for more information on the number of LBI Waterfront Buyers and Sellers.

Also, refer to my LBI Oceanfront and Bayfront Statistics page.

• The deal may go quicker (loans, inspections, etc.) in a slower winter market and you’ll get in before summer to enjoy your new beach home or get those rentals secured if it is an investment property.
• Dress warmly –summer homes on LBI are shut down without heat and water and you want to be able to spend time looking at your future investment.
• Try not to track mud and snow into the house.
• Come back when the snow melts to check parts of the property that are hidden by a snowfall especially the roof or foundation.

For properties currently available for sale and for those under contract, please feel free to call me.  I would be happy to e-mail, mail, or fax current Multiple Listing Computer detailed reports

If a property is no longer being used, now is the time to sell to a buyer that enjoys LBI and the dreams LBI creates! Most buyers are excited that they can now afford a vacation home on LBI!  With attractive mortgage interest rates and lower prices, along with a variety of properties to choose from, it’s a great time to buy or sell on LBI!

Updated Supply vs. Demand Information (Summer 2013)

So far, there have only been 5 Oceanfront single family home sales for the first six months of 2013.  This matches record lows of 2nd half of 2009 and also the second half of 1994.  In addition, the number of oceanfront properties (supply) for sale has increased from 38 the last half of 2012 to 44 oceanfront properties currently listed for sale.

The good news is there are currently 4 oceanfront properties under contract and it appears our 2nd half will continue to have many more sales than our first half of 2013!

I calculate our supply to demand curve by dividing the number of oceanfront properties sold in the latest half year period by the amount of oceanfront properties currently for sale. These are two key factors to prices stabilizing with values on the rise in the near future.  This first half of 2013 our supply vs. demand ratio is .11 which is much less than last year.  We are in much better condition than back in ’94, when the ratio dropped to .06, I feel this ratio will gain quickly as time goes on and sales volume becomes back to normal.

Currently, there are 44 oceanfront properties available for sale, more than the 38 available last year, but better than the 55 available at this time 2011.  There were 59 homes listed for sale during  the first half of 2010. Our record low of 15 oceanfront homes on the market was in 2002. Our high was 101 oceanfront homes available in 1993. There are approximately 1100 oceanfront homes on LBI.

 

 

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Original Article

Simple economics states that if there is an abundance of a product (waterfront homes) and few consumers (Buyers) values will descend.  It is when we reach an equilibrium that values become stable.  When the product is scarce and the demand is high, values increase. During 2002, supply vs. demand ratio was the highest in 21 years, at 1.09 for oceanfront sales.  The current supply vs. demand ratio of 0.115 on oceanfront is the lowest it has been since I began documenting data in 1992.

Bayfront property seems to be consistent with last year at 0.17.  This is comparable to the ratios back in 1992 thru 1994, when prices were fairly stable and took a few years before seeing any appreciation.  This is a substantial decrease in general and has proven sales have slowed down these last few years.   Currently, there are 63 oceanfront and 45 bayfront single-family homes available for sale on LBI.

Our record low of 15 oceanfronts on the market was in 2002.   Our high was 101 oceanfront homes available in 1993.  The number of oceanfront sales has decreased from a high of 50 in 1999 to 23 in 2007, 21 in 2008 and only 14 in 2009.

With this minimal number of sales versus the number of waterfront properties available for sale increasing, it appears that prices may continue to decline.  The most desirable and competitively priced waterfront homes will sell.   Those that are overpriced will not.

Sign up for my FREE Long Beach Island Waterfront Newsletter to view data, statistics and charts of Supply vs. Demand values