Word is out on the streets. It’s all about investing now. The flippers are feverishly looking for “The Deal”. And there are plenty out there. Builders are looking to build, investors are looking to purchase and flip. Whether it be a Sandy damaged tear down, an REO (Bank Owned), Estate property, and so on, deals are moving along and inventory is low. The market is turning rapidly in the Ocean County footprint. Bidding wars are starting to happen again. Prices are steadily climbing and the interest rates are still at historically low rates. Take a look at a few waterfronts that are on the market now in Ocean County:
An interesting climb in the market are waterfronts. There are so many lagoon and bay front communities that allows affordability to the secondary home Real estate buyer. However without proper guidance it could be a major flop. Prices of house raising have gone through the roof. Anywhere from $60,000 plus. Depending on size of home and whether it is built on a slab or crawl can also have consequences to the price. Now that’s just the raising part. There are township permits to be dealt with, along with utility hook ups and disconnects. Plumbing, electric, gas, etc will need to be revamped and hooked back up by professionals after the house raising. That is just one area of it. House raising is something that must be dealt with if the home has a substantial damage letter from the township. This would mean that the owner spent more than 50% in repairs of the building assessed value from 2012, year of the storm.
If no letter of substantial damage is on file than house raising may not be an important issue. However, now we are getting involved in FEMA elevations and flood insurance. https://www.fema.gov/flood-mapping-products
Even though the investor may be purchasing with cash, once they go to flip the home chances are the next buyer will most likely be a loan purchaser. It could make or break the deal if the flood insurance runs in the thousands. Due diligence is necessary when purchasing a waterfront home. Whether you are on the investor side or purchaser side, it is important to learn the lingo and educate yourself. Your REALTOR should know and assist you in the process; Especially if he or she have sold waterfronts in the past.
Elevation certificates will provide all the documentation you would need when purchasing a flood zone home. A home can be in the flood zone area even if it is not a waterfront property. Most of the time anything East of Main st will have a much higher chance of it being in a flood zone. The certificate will provide elevation information that is needed for the flood insurance and for raising the home, if required.
On a lighter note, when a waterfront home is purchased for sheer delight and raising or knocking down is not the primary issue, that is when we can have some fun showing these homes and it gives our buyers so much to look forward to in their new home and surroundings, should it be a temporary vacation home or their permanent residence.
One of my prideful moments is when I filmed an HGTV segment with my clients in the Beach Haven West area. A young family, a brother and twin sisters, looking for a home they can relax in on the weekends and continue their leisure time close enough to Long Beach Island, to carry on their childhood memories and create new ones now that they are adults.
Take a look…..
MAKING MORE MEMORIES IN MANAHAWKIN, SEASON 14 EPISODE 7: