Today’s real estate market in South Jersey is more lively and unpredictable than ever before. Both sellers and buyers alike wonder if they are getting a fair market value in their real estate transactions. Sure, you will call in appraisers and you should certainly can take advantage of the
FREE home market valuation offered by your agent, but there’s nothing that can replace insight and realistic expectations.
When Kristina Doliszny, an Ocean City, NJ Realtor and Vice-President of the OCEAN CITY REAL ESTATE GROUP gets asked this question by her clients, she typically responds by first defining some terms and goes on to explain: “When I speak of market value – I have to assume that I am answering the question, ‘what is the highest and best price you can reasonably expect a buyer to pay for your shore property if it were for sale today?’”
Kristina evaluates numerous properties for sale in Ocean City NJ, and other shore communities on a daily basis, and has both a strong and realistic grasp of the current market. She further clarifies her response by determining a “price range” for her sellers, and helping them gain a better understanding of the following basic facts when it comes to all New Jersey real estate transactions:
1. First and most important, no agent can guarantee a seller any specific amount of money for their property. The price secured for a NJ shore property is largely dependent upon the contractual terms and conditions the seller is willing to accept. For example, sellers may be offered a higher purchase price because they have agreed to their buyer’s contingency requests. This may include time for a buyer to sell their current home before they have to close on the new home purchase. Or, sellers may accept a lower amount because the offer to purchase is all cash, no financing or contingencies required, with a very short closing time. Although the most important component, the purchase price is just one aspect of the overall contract.
2. Local market conditions must always be factored in. You must compare “apples to apples” to understand what you are really buying. Just as prices for equities in the stock market vary by industry and future profit potential, real estate assets and their values vary from region to region across the country, and across the globe. Just as you cannot compare shares of Apple to shares of Home Depot, you cannot compare current real estate values and cap rates on the South Jersey beach island resorts such as Ocean City, Longport, Margate, Avalon or Stone Harbor to places like Boston, New York, Philadelphia, Miami or Los Angels. Property values of Ocean City beach homes; Longport water view homes; South Jersey duplexes & condos, and “income producing investment shore properties” always maintain a higher market value (due to a limited supply & increasing demand variable); and they tend to “retain” their value over time, greater than other areas throughout the country.
That’s a great hedge for any long-term investment portfolio!
3. The current South New Jersey real estate market is still a “BUYER’S MARKET“. The best values and purchases can be made now because the market seems to have bottomed in Ocean City last year with strong evidence that we have started an ascend back up again. However, in a descending national market, buyers may sometimes still be somewhat reluctant to purchase any shore property that does not seem like a “deal”. List prices may continue to remain conservative in order to obtain a successful result for the seller. The situation flips in an ascending market, where buyers are anxious to lock in what appears to be the lowest possible market price at the given time. As interest rates start to rise or our
US dollar starts to slide again, buyers may become more anxious to “lock in” those bottom of the market deals, putting an end to any of the “good deals” that may still be available right now.
4. Distressed shore properties are a “buyer’s option”. As the nation continues to see an abundance of foreclosures and bank-owned properties in their own areas, they are more inclined to seek out some better deals on short sales down the shore causing more sellers to be more inclined to negotiate harder for a lower price. However, buyers need to realize that negotiating with banks on a seller’s short sale or the purchase of a bank owned property may take up to a year or longer, and the sale is not guaranteed until the banks give the green light of approval on both your offer and approval to close on the sale. And sellers looking to sell their shore property as a short sale need to hire an exert team of professionals who are prompt, considerate and very thorough in following through with the bank negotiator that will contribute to the success of the short sale.
5. Properties that show beautifully sell quickly: As everyone knows, you usually “don’t get a second chance to make a great first impression.” Just as one prepares for a stage performance, sellers who dress-up and prepare to “stage” their properties in order to show them at their best will eventually SELL them! Quick and simple improvements to your property, such as new paint, replacing old carpeting with new carpet or wood flooring, a detailed cleaning, or trimming trees to expose a view, could easily add greatly to the value of your New Jersey shore property which you are looking to sell.
And this is true in any real estate market!
In the end, it’s satisfactory results that matter most to both buyers and sellers. Consequently, the expertise and effectiveness of the marketing campaign and property positioning your New Jersey Realtor creates for you has a very significant impact on the sales price you receive. When you hire an agent to represent you and to secure the highest and best possible price for your assets, you should expect them to “work your listing” and earn their pay in doing so.
If you are looking to buy your upcoming New Jersey shore home, select an agent who is detail-oriented, quick to follow-up with you, understand’s both your family’s needs and your investment goals, knows the market and can successfully negotiate on your behalf and in your best interest.
Therefore, always remember that the best way to guarantee you are getting top value in your real estate transaction is by working with experienced and trusted real estate professionals.
OCEAN CITY REAL ESTATE GROUP
“OPENING NEW DOORS & NEW OPPORTUNITIES
FOR OUR CLIENTS EVERYDAY”.
So call us today and let us do the same for you!