Recently one of my listings in Atlantic City was bombarded by multiple showings and multiple cash offers. It ended up going under contract over the asking price. The interesting thing was that 3 out of the 4 offers we had were investors looking to purchase the property as an Airbnb rental.
The benefit of an Airbnb is that you can use the property while it’s not being rented. It helps offset the cost of buying a second home while getting income at the same time. At the Jersey shore there are some great potential areas for Airbnb. I’ll go over that in a minute. First lets look at 5 tips buying an Airbnb at the Jersey Shore.
1. Check Local Ordinances And Rules
Many municipalities and associations don’t allow short term rentals. This is really important to know up front before being a home. It may be best to avoid condos and home owners associations.
2. Don’t count on Airbnb to carry the house expenses.
Short term rentals like Airbnb and VRBO can fluctuate as seasonal changes and buyer demands change. A good rule to consider is will the property work as a long term rental. If so it’s a great investment regardless or what may happen with the short term rental market.
3. Check with your accountant
IRS tax code may not allow you to use the property for personal use and still get tax write offs. Check with your accountant before jumping in to any real estate investment.
4. Calculate the expenses of a short-term rental
Vacation and short term rental property are more expensive to operate and painting. They need frequent cleaning and repairs. Also all utilities need to be on and ready for a potential tenant. If you own a property out of the area you may need to hire a property manager or have a maintenance contract in place.
5. Work with an expert to pick the right location
Location is a key factor in buying any property and especially when choosing an Airbnb or short term rental. Some things to consider: Is the are safe? Is it close to restaurants, activities, transportation? Is it close to the beach or a short drive to the beach? It helps to work with an expert who knows the area. For example in Atlantic City there are some great location for short term rental properties and then a block or two away areas that are undesirable. You may also consider areas on the mainland like Galloway or Egg Harbor Township. You can get more house for your money to accommodate larger groups of people. Plus your still a short drive to the beach and attractions.
Contact us for help with your next purchase or sale.
Here is a look at the Atlantic County real estate market. We will break out single family homes, condos and take a look at adult communities.
For single family homes, New listing were up in December, closed sales were up and median sales price was up by 22.6% to $225,000. Inventory was down by 4.7%.
For condos and townhomes new listings were up 40% and median sales price was up 31.8%. Inventory went up 10%. Recent changes allowing FHA spot approvals should open up more financing options for condo buyers and also help contribute to increased condo prices.
For adult communities new listings rose by 42.9%. Days on market dropped by 60% to just 33 days on market. Median sales price decreased by 21% for the month. In general the adult community home prices do mirror the rest of the market so a few lower priced homes sales may have led to the drop in prices for the month.
If you’re thinking about buying or selling a home please contact us for a complimentary Pin Point Price Analysis and Room By Room Review.
Our award winning team is grateful to have the opportunity to help over 72 families with their real estate needs in 2019. Matthew Haviland earned the silver Circle Of Excellence Award and Richard Haviland earned the bronze award from the New Jersey Association Of Realtors. Combined team sales volume was over $12.5 Million dollars including our other team partner James Schroeder.
Our business is based on referrals. We would like to take time to thank our friends, family, neighbors, and past clients for introducing us to the people they care about. Your endorsements are the lifeblood of our business. Thank you! Here’s to a wonderful 2020. And remember we always have time to help a few new clients.
Don't sell your house before doing these 5 things first!
If you’re thinking about selling your home in the Spring or Summer now is the time to start getting the home ready. If you want to sell your home quickly and for top dollar do these 5 things as you prepare your home.
Create a great first impression.
Winter may not be the best time to prepare landscaping however one key area you can work on any time of the year is the front entry way to your home. Look at the door does it need to be painted? How is the trim work? Make sure this are is clean and free of any cobwebs or dirt. Remember that the buyer will often be waiting outside for a few minutes before entering the home.
This is a simple one but not easy. Picture your home as a model home. You want to make the rooms look open and inviting. Sell or pack excess furniture. Pack knickknacks or decor that is excessive.
Clear The Kitchen Countertops
Kitchen spaces can seem small when they are covered with appliances, utensils and pots and pans. Remove everything off the countertops to make your kitchen and counter space appear bigger.
Make sure the home is odor free
Smells can make or break a house. Odors can easily be picked up on as soon as you enter a house. Make sure your home is odor free. Keep it clean. If you’re a smoker, smoke outside. Air out the house if you need to or seek professional help if you have a severe odor.
Fix things that are broken
If you know things need to be done take care of them. Fix little things like burned out light bulbs, leaky faucets, or electrical switches that don’t work. If you really want to be proactive you can do a pre-home inspection and find out exactly what issues would come up on an inspection report. This gives you time to fix or evaluate the issues before putting the house on the market. We have home inspectors we can recommend if you need help with this.
If you’d like more ideas on getting your home ready contact and request our free Room By Room Review booklet. We can email you a copy of this booklet or come out and personally give you our recommendations on what to do and what not to do.
Here is a list of FHA approved condominiums in Atlantic County, NJ
Here is a list of FHA approved condominiums in Atlantic County, NJ. Based on findings at HUD.gov. Financing for condos with an FHA loan can be challenge. Under the revised guidelines – which took effect Oct. 15, 2019 – an individual condo unit in a building of 10 units or more may be eligible for spot approval if no more than 10% of the units are FHA-insured. So even if a condo is not on the FHA approved list it may still be eligible for FHA financing.
If FHA financing is not an option there are other choices include USDA loan (100% financing), and some banks do offer a 3% conventional loan. Contact us if you’re interested in financing a condo purchase.
10 N ADAMS AVE
MARGATE, NJ 08402
THE FOUR SEASONS CONDO
NORTHFIELD, NJ 08225
THE MEADOWS AT HAMMONTON
HAMMONTON, NJ 08037
THE VILLAGE AT LINWOOD
550 CENTRAL AVE
LINWOOD, NJ 08221
824 MARSHALL CT
VENTNOR, NJ 08406
These condos are approved for as low as 3.5% down payment FHA home loans.
UPDATE: 2/21/2020. We just sold a lovely 2 bedroom condo in Society Hill II in Galloway Township and the sale was approved via FHA with a spot approval.
Consider Woods Landing active adult community in Mays Landing.
We’ve just contracted with Fernmoor Homes to sell their fabulous 55+ active adult community called Woods Landing. This community is located in Mays Landing in Atlantic County, NJ. Home prices start at just $244,900. Homes range from 1,500 square feet to 1,875 square feet. All homes feature 2 car garages, walk up attics and upgraded interiors. 2 homes are available for immediate occupancy. Click here to learn more about Woods Landing homes or contact us for a tour.
Recent sale in Egg Harbor Township went under contract in 7 days $7,000 over asking price.
It’s a great time to sell a home and I want to share a story about Jim and Lori who were able to sell their Egg Harbor Township home quickly and for top dollar. The biggest factors in selling any home are price and condition.
Jim and Lori had a home inspection done before listing their property so they didn’t have any surprises. They fixed most of the items that came in the inspection report before listing the house to ensure a smooth sale. They also priced the house right. The result of this was 9 showings and under contract in 7 days. The home sold in just 42 days and sold for $7,000 over the asking price.
If you’re interested in selling your home and want top dollar and a quick sale contact me for a free consultation.
Every year we offer fresh baked pies to our clients and referral partners as a way of saying thank you. It’s a great day and this year was our best pie day yet. We are grateful to have the opportunity to help so many wonderful people buy sell and invest in real estate. Thanks to our clients for trusting us with their real estate needs and introducing us to the people you care about!