Homes Damaged by Sandy Hit Market at Bargain Prices

Joseph Byrne Monday, March 11, 2013

You can almost see the television producers scrambling to put together a reality show about the real estate market on Long Island after Sandy. The reason is that these Sandy damaged homes around Long Island are now being sold at rather cheap prices. Now, there is a mad dash as investors, flippers, and bargain hunters flock to try and buy up their own piece of Long Island.

While there are bargains out there, ranging from 10 percent off pre-storm prices for upscale homes on Long Island and the Jersey Shore to as much as 60 percent off modest bungalows Staten Island and Queens, it’s still very much a game of buyer beware.

Not only are buyers are on the hook for repairs and in some cases total rebuilds, they’re also wading into a host of potentially expensive uncertainties about new flood maps and future insurance rates, zoning changes and updated building codes.

“It’s totally changed the way I sell real estate,” said Lawrence Greenberg, a sales associate with Van Skiver Realtors, whose own Mantoloking, N.J., office was wrecked in the storm.

Prior to Sandy, prospective buyers rarely mentioned issues such as flood maps and building elevations until the matter of flood insurance came up — often at closing. “Now, everybody asks the question of elevation,” Greenberg said. Even if potential buyers plan to tear down and build new, they ask about the pending changes in flood maps proposed by the Federal Emergency Management Agency, because flood insurance rates will depend upon the new zones.

There is no sign of a mass exodus from shoreline communities. The number of for-sale listings in January in the 380 zip codes hit by the storm was about 2 percent below the same time last year, according to online real estate information company Zillow Inc. That indicates that most homeowners are rebuilding, or have not yet decided how to proceed.

With the Federal Aid package that was voted in, perhaps many of these homeowners are waiting to see how it effects them and if they can rebuild with a share of it. However, the dropped prices of Long Island real estate is something to think about when rebuilding or buying a home.

joeb@longislandyellowpages.com

Appears In: Business News

 

 

• Business News
• Education
• Entertainment
• Jobs & Careers
• Local Events
• Local Steals, Deals & More
• Press Releases
• Restaurants & Food
• Sports & Recreation

Columnists John M.   Show all Columnists