The Burke & Co. Weekly Market Report for Avalon, Sea Isle, and Stone Harbor– Week ending October 24, 2020
Last week, we mentioned that the next two months are historically the best time of the year for buyers to find a deal in the shore market. We mention it again because nobody ever listens. Well, almost nobody.
What if you are looking for something different than a vacation home? What about people searching for a true investment property, not a vacation home that happens to work out well as an investment? With prices having risen so dramatically recently, we have seen a few investors cash out. However, there are always opportunities to get into, or move within the shore home real estate market as investment properties.
There are a great number of ways to analyze and plan an investment and different Burke & Co. clients look at the process and measure success in different ways. However, we thought this week we’d highlight three top-of-mind considerations that might prove a blueprint for success.
First, there is almost always room in premier home markets like Avalon, Stone Harbor, and Sea Isle for increasing equity with improvements. Unlike in the primary home market or less premier markets where property improvements often cost more than they produce, the wide variation in prices that exists here because of the high price point means that an updated and well-styled home can attract a much bigger number than its run-down or outdated former self. This is compounded by the fact that the typical second home purchaser does not want a project, especially a project hours away from where they live. Un-updated homes struggle to sell even in our very strongest market conditions. If your plan might include equity from renovation, this is the time to make an offer on one of these homes that did not find their fall buyer.
Second, familiarize yourself with the rental market. This is where an experienced agent makes the biggest difference. Public records afford a wealth of information concerning the sale market to anybody who takes the time to google the research. The Sea Isle, Avalon, and Stone Harbor rental market databases are still largely in the possession of the agencies that conduct the lion’s share of rentals. Finding out the “rental history” of a specific property on the sale market is missing the picture. Many homes are renting far under potential because of years of complacency. A good agent can comp a given property with rentals that are top producers for the type, location, and condition of a subject property. Understanding the numbers between a purchase price, carrying costs, and rental income is the number one key to success. (Burke & Co. is– if we don’t mind bragging– an incredible resource here.)
Finally, timing is important. Avoid the emotions of summer and spring home shopping with pure vacation home buyers. Take advantage of the grey, cold November and December months. Sellers who missed in the fall are most susceptible to negotiating now. Additionally, this will provide you maximum opportunity for the things that will need to get done to make year one a success.
If you are ready to start your plans to buy or sell, call us at our team line at 609-478-0333 or email [email protected]
And of course, take a look at all of this weeks new listings, under contract, and sold homes with these links.
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