Nathan Colmer | The Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
Find LBI real estate For Sale By Owner and single family homes on Long Beach Island New Jersey. Buying a home For Sale By Owner can potentially save you on commissions, if the house is priced right to begin with!
The purchase of real estate is a major financial investment. With the average price of a single family home on Long Beach Island being over $1,000,000, it is important for buyers to understand the Long Beach Island real estate market and what determines a fair price for a home.
What is a for sale by owner on Long Beach Island?
Exactly as the name implies, a for sale by owner property is created when the owner of a house markets and will try to sell his or her property without the aid of a real estate broker. New Jersey law allows for individual owners of a property to sell their own property.
Can I work with a real estate broker when looking at a for sale by owner property?
Yes. There are two ways a buyer can work with a real estate agent to buy a for sale by owner property on Long Beach Island. First, many owners offer "broker protection" by which the seller will pay a commission to a real estate broker who introduces a buyer for their property. The second way is for the buyer to pay the commission to their agent for the services rendered.
Does buying buying a for sale by owner home save money?
Yes and No. On the surface, the absence of the seller paying a commission can result in a lower sales price. Logically this makes sense. However, what really matters is the sales price. If the agreed to sales price is over market value, then the transaction can cost you more money than you need to pay. It is therefore important for anyone looking to buy a home on their own to understand the market valuations and current trends.
What are the dangers of buying a for sale by owner property in the Long Beach Island real estate market?
While there are risks in any real estate transaction, overpaying for a home and a lack of disclosure rank high in for sale by owner transactions. When buying a for sale by owner property on Long Beach Island it can be difficult to compare the for sale by owner property to other home sales. This lack of comparison makes it hard to determine if the price is fair for the house and can lead to overpaying for the property. In the wake of Hurricane Sandy, disclosure is very important. Owners have a legal obligation to disclose known defects about their home, for example flood damage as a result of Hurricane Sandy. Responsible real estate agents require sellers to fill out a Seller's Disclosure form which is essentially a check list for the home of potential defects.
What should a buyer look for when buying a for sale by owner property?
That depends on what kind of property is being purchased! Many for sale by owner homes are storm damaged shells that are being sold for land value. Clearly a home inspection is not warranted if the property will be torn down but what is important is the condition of the lot and the ability to rebuild. Depending on the lot size, some homes will need a variance to rebuild. Even worse, some homes could have an environmental concern such as a tidelands claim. This could potential render the lot non-buildable! If the house is being sold as an end user home, it is best to ask for a seller's disclosure. If the property was flooded during Hurricane Sandy, you should ask for copies of contractors invoices and permits from the town. A home inspection will seek to uncover any defects in the home, but knowing what you are getting into is important before you commit to the transaction.
If you have any questions about the LBI real estate market, feel free to contact me, Nathan Colmer and I will be happy to answer any questions you have.