Listing Courtesy of JACK LINGO REHOBOTH
Deciding to buy a vacation home in Rehoboth Beach can be one of the smartest investments there is. Or it can turn into an irksome drain on time and pocketbook. As much as with any real estate transaction, buying a vacation home that fulfills its upside potential takes thoughtful weighing of all the advantages and drawbacks a second home entails.
There’s nothing better than having your own place to escape to when it’s time to get away… and if the same sanctuary can be rented out now and again, that extra income only adds appeal. Especially when you find a place that strikes an emotional cord, it can be hard to resist the impulse to just make an offer and work out the kinks later. All the same, it pays to keep an eye on some of the issues that don’t leap to mind when you think “vacation.”
Even if it’s only a part-time venue, that Rehoboth Beach vacation home will need ongoing maintenance attention. If you are a dedicated DIY hobbyist, that may not be a large issue; but if not, part of your due diligence will be verifying the availability and price of professional help.
For a second home to make financial sense, all expense items should be part of the budget calculations. A vacation home might be near enough to the water to warrant flood insurance (or extra work done to prepare it for floods), just as a cabin in a wildfire-prone area might be at greater risk of fire and need extra coverage. If your vacation home will involve a home loan, be prepared to pencil in a higher interest rate than what’s expected for a primary residence. Even if it’s just a bit higher, the total amount will add up over the life of the loan. Taking all expenses fully into account from the beginning means there will be no surprises later on.
A Delaware vacation home should be a place that lowers everyday stress levels — not adds to them. There are plenty of properties available, so do give me a call. One of them might be just right for you! Call/text 302-228-7871or email me, Russell Stucki, REALTOR® of Beach Real Estate Market to provide detailed information on Delaware homes for sale, investment and commercial properties, luxury and waterfront homes, condos/townhomes, new construction, lots and land, farms and equestrian properties located in but not limited to Bethany, Bethel, Bridgeville, Dagsboro, Delmar, Ellendale, Fenwick Island, Frankford, Georgetown, Greenwood, Harbeson, Laurel, Lewes, Lincoln, Milford, Millsboro, Millville, Milton, Ocean View, Rehoboth Beach, Seaford, Selbyville, Delaware.
You may have seen the reports — and they are correct — that the number of new foreclosures has dropped almost everywhere throughout the country. Although the Mortgage Bankers Association’s report about the drop in non-seasonally adjusted foreclosure starts might indicate otherwise, sharp-eyed buyers can still find any number of foreclosed homes in Delaware.
For those whose goal is to find an appreciably nicer home at a lower-than-average price, a few basics shed light on the process.
Short sales differ from foreclosures. Although the sale price may be a good deal less than what is still owed on a loan, it may be more or less than the actual value of the home. A foreclosed home in Delaware is one that is actually owned by the bank holding the underlying loan — with the previous homeowners already having moved on.
Success in the foreclosure realm means saving money by buying local foreclosed homes — and it means being aware of the motives of the lender. First, any bank will typically offer foreclosed homes on an as-is basis. To keep losses in check, no repairs will have been made on the property. Some homes may be in fine condition, but others will not. That’s why it’s so essential to be willing to pay for an inspection on the property: it’s the only way to know exactly what you are getting into before you sign on the dotted line.
Unless you have prior success in buying Delaware foreclosed homes, it is universally recommended that you enlist a buyers agent to help throughout this process. An agent can advise you whether or not the property value is in line with the market for comparable properties in comparable condition. While you can work with the bank on your own, it is advantageous to have an experience professional to assist at the bargaining table.
If you are interested in buying foreclosed homes in Delaware this fall, why not contact me today to discuss your search parameters? The values really are out there to reward the patient — and anyone willing to put in a dollop of elbow grease! Call/text 302-228-7871 or email me, Russell Stucki, REALTOR ® of Beach Real Estate Market to provide detailed information on Delaware homes for sale, investment and commercial properties, luxury and waterfront homes, condos/townhomes, new construction, lots and land, farms and equestrian properties located in but not limited to Bethany, Bethel, Bridgeville, Dagsboro, Delmar, Ellendale, Fenwick Island, Frankford, Georgetown, Greenwood, Harbeson, Laurel, Lewes, Lincoln, Milford, Millsboro, Millville, Milton, Ocean View, Rehoboth Beach, Seaford, Selbyville, Delaware.