January 18th, 2011
Shows what I know. If you told me back in 2005 that we'd ever be selling properties in the $100,000's again I would have laughed in your face. After all, real estate prices in Cape May County, New Jersey had escalated at 3% per month for a year and a half. Even as the market cooled slightly, they were still going up one percent a month.
Well, here it is 2011. It's a brave new world. We currently have 14 residential listings available to buy that are priced under $200,000. And that doesn't include vacant lots.
The market determines the price. Okay, the owner actually decides what price to ask after weighing - and sometimes discarding - the pricing advice of their realtor. But if there's no action after two months, it's time to lower the price. After another two months of minimal interest in the unit, it's time to reduce the price again. It's called "finding the price point". Once you arrive at the price point, the unit typically gets an offer within 21 days. Real estate, for the most part, is no longer "location, location, location". It's "price, price, price".
Several of our lowest priced units are seasonal, meaning the water is shut off from November 1 to late March or April. There is too much chance of water pipes freezing and bursting in the cold winters for the complexes to take the risk. Leaking pipes can do hundreds of thousands of dollars in damage in a short time in a two or three story multi-unit building.
Our lowest priced unit is in a campground complex, complete with swimming pool, basketball courts, tennis courts, a game room, and organized activities day and night for both kids and adults. The 35-foot long trailer, built in 2004, is cute and homey. The property is listed at just $59,900.
We also have three units in a complex on the 300 block east in Wildwood, just a half block from the beach and famous Boardwalk. All three units are one bedroom, one full bath, and the complex has an inground pool. Sold as a short sale, the 336 square foot unit is going for $99,000 and the two 450 sq ft units are priced at $120,000. They have both price and location going for them!
We have two units a couple blocks away also in the 300 block east and a short walk to the beach and Boardwalk. Both of these short sale units are 633 sq ft, two bedrooms, and priced at $112,000. The remodeled units, featuring new carpets and new wood laminate floors and tastefully decorated, rent for $975 per week.
We just listed a 15′x25′ efficiency unit in the 400 block east in the heart of Wildwood Crest for $124,900. It is totally remodeled, with new refrigerator, stove and range top, cabinets, countertops, etc. The Caribbean theme really makes you think you're on vacation and the swimming pool, barbecue grills, etc make life easy. Can you say, "Pina Colada"?
Wrapping up my look at "too good to be true" properties is a cute, year-round single family home in Villas, Lower Township. Situated on a 60′x86′ lot, the two bedroom, 1 1/2 bath home has an attached garage, fenced yard, and inside there's a dining room, living room and family room with electric fireplace. Originally, $149,000, two price reductions have brought the price down to its price point of $132,000. It's a great place to retire, vacation, or start a family.
There are bargains galore at the shore in Cape May County. Maybe now is the time for you to take advantage of price, price, price.