Click for sections: BUYING | SELLING

Why Buying a Home is a Good Idea
The Best Investment

As a fairly general rule, homes appreciate about four or five percent a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region.

Five percent may not seem like that much at first. Stocks (at times) appreciate much more, and you could easily earn over the same return with a very safe investment in treasury bills or bonds.

But take a second look…

Presumably, if you bought a $200,000 house, you did not pay cash for the home. You got a mortgage, too. Suppose you put as much as twenty percent down – that would be an investment of $40,000.

At an appreciation rate of 5% annually, a $200,000 home would increase in value $10,000 during the first year. That means you earned $10,000 with an investment of $40,000. Your annual "return on investment" would be a whopping twenty-five percent.

Of course, you are making mortgage payments and paying property taxes, along with a couple of other costs. However, since the interest on your mortgage and your property taxes are both tax deductible, the government is essentially subsidizing your home purchase.

Your rate of return when buying a home is higher than most any other investment you could make.

Three Truths That Rule Every Real Estate Market

Regardless of where you are considering purchasing real estate, and regardless of whether it will be used as your primary residence, an investment property or your dream vacation home, three core rules apply to buying and selling real estate:

1. Real estate is governed by the law of supply and demand: The appreciation of a market, the expectations of buyers and sellers, and the pace of market sales are all dictated by the supply of – and demand for – real estate for sale.
2. Real estate is governed by the law of cause and effect: A vibrant economic growth cycle leads to a vibrant real estate market and strong appreciation of homes, while loss of jobs and economic uncertainty produce exactly the opposite effect.
3. History will repeat itself: In any marketplace, there are cycles. Period of rapid appreciation will be followed by stagnant periods where prices stabilize or even decrease.

I can help you understand where the market is in this cyclical process and create a winning purchase offer!

Your Dream Vacation Home, Investment Property or New Home?

OK. You get it. Investing in real estate yields higher returns than most any other investment. You understand the market you want to buy in – Coastal Sussex (Rehoboth Beach, Lewes, Dewey…). Now what? That’s where your Delaware Beach Real Estate Expert (me!) steps in.

The whole process of purchasing property can feel overwhelming. It does not have to be – my goal is to make the whole experience of searching for and buying real estate straightforward and painless!

Before buying real estate, you need to know what you want, and how much you can afford.

• Make a list of “must have” and nice-to-have” features of your new home. Characteristics such as single family vs. townhouse or condo, number of bedrooms and bathrooms, yard (fenced?), community amenities – these are just some of the features of a property that you should consider as you look at Rehoboth Beach area real estate. It will also enable me to find your perfect home!!!
• Understand your financial picture. It’s a good idea to know how much house you can afford. Talking to a mortgage professional can help – by asking a few questions, a local mortgage pro can provide a general range of property you can afford, given current income, credit score, debt, etc. You can also look at any online calculator to see what your monthly payment will be for various prices and interest rates.

House Hunting – The Best Part!

Once you know what features you want and a general price range – let me do the hard work! I will search for, and present to you, homes that meet your criteria in terms of features, location and price. Since I am your beach area expert, I will scour the listings to find homes that are in your price range (not above) and meet your goals! I will schedule all visits and be your guide to each property. You can also cruise through the listings yourself by using the MLS page on this website – this is your connection to every listing in the Sussex County MLS.

Remember – you may be looking at someone else’s décor, and while it’s possibly not your style, the house itself may be perfect! So – keep your mind open and imagine the possibilities. What would the master bedroom look like with a new color? Would the yard “pop” with a nice garden? Look at each property with fresh eyes and have fun while you’re “shopping”!

Making the Offer

In an offer to purchase real estate, you include not only the price you are willing to pay, but other details of the purchase as well. This includes:

• how you intend to finance the home
• your down payment
• who pays what closing costs
• what inspections are performed, timetables
• whether personal property is included in the purchase
• terms of cancellation
• any repairs you want performed
• which professional services (attorney, title company) will be used
• when you get physical possession of the property
• how to settle disputes should they occur

Sounds complicated? Well, it is, but it is also exciting! The offer is the first step in negotiating with the seller to purchase your dream beach vacation home, retirement residence, or adding to your investment portfolio. But sit back and enjoy the ride, as I will take care of the details! I will be involved in every step of the process, from helping you craft the initial offer and conditions, through negotiations, coordinating the timetable of inspections and financing conditions, all the way to sitting down at the settlement table and seeing you realize your goal of acquiring beach real estate.

Now that the property is all yours, I don’t go away. It’s time to “spruce up” your new home, and give it your personal signature. I’m with you all the way, happy to offer guidance and suggestions on ways to improve the home, contractors to contact for bids, and anything else you might need.

100% Service, 100% of the Time.

What You Need to Know
Selling Options

Now that you have decided to sell your home – for job relocation, better schools, etc. – you have more choices than ever before as to the method you use to sell your home. You can choose to sell it yourself; commonly called For Sale by Owner or FSBO, or you can list the property with a real estate brokerage.

Within the brokerage industry, there are a variety of business models that offer you, the seller, a wide range of options. Most full-service brokerages, such as Ocean Atlantic Agency, will take full, exclusive responsibility for marketing and selling your property. The Realtor® you hire to sell your house will receive no compensation whatsoever unless and until the property sells and settles.

By contrast, there are firms that offer “limited services” in exchange for an up-front flat fee, or perhaps offer a menu of pay-as-you-go or “a la carte” options. Some even offer a sliding scale ranging from limited to full service. In these cases, the compensation of the Realtor® is based on these reduced service levels with the seller bearing full responsibility for all the other steps and procedures in the selling process. In short, the marketplace truism is that “you get what you pay for.”

What DO I Get for My Money?

No matter which option is chosen, before signing a Listing Agreement or otherwise engaging the services of a Realtor® and agreeing to compensate them, homeowners should understand exactly what services will, or will not, be provided.

For that extra measure of peace of mind, ensure the individual seeking to represent you is both a real estate licensee and a REALTOR®. Visit the Sussex County Association of Realtors’ website at www.scaor.com, for a searchable list of Realtor® members.

So – what exactly does a Realtor® do? The list provided below is an abbreviated version of a much more detailed list, which you can view here. This should give you a solid understanding of the things your real estate professional should be doing for you.

1. Initial visit – an initial meeting with you and to preview your home should be conducted before any discussion of listing price should be discussed.
2. Comparative Market Analysis – also called a CMA, this is an invaluable tool used to understand what properties of a similar nature in similar neighborhoods have sold for. The CMA should also analyze properties that are currently under contract, as well as those that did not sell for whatever reason.
3. Detailed property inspection – Once you have decided on a Realtor®, he/she should conduct a thorough property inspection, measure room dimensions (or review floor plans you might have from your builder), suggest fix-up items to make the home more appealing to buyers, and review the marketing process with you. Your Realtor® may also recommend having a pre-listing home inspection conducted, to reveal any repairs needed prior to showing and accepting any offers.
4. Sign and Lockbox – Yard signs should be installed (unless there are neighborhood covenants that preclude it), and a secure lockbox should be installed. Sussex County Realtor® use the Sentrilock lockbox system, for the highest levels of security while allowing other agents access to show their buyers your property.
5. Photography and Virtual Tour – You want a good set of photographs for prospective buyers to review, and for advertising and internet purposes. These should be taken at the optimal time of day to maximize the appeal of your property.
6. Broker Open House – Owners are best served by having the property shown to as wide array as possible purchasers. The “Brokers Open” is an event held to invite other members of the brokerage community to privately view the property. This is a key event that will expand the marketing of your property to include other local Realtor®.  Feedback from these agents is also solicited, and provided to you the seller.
7. Posting your listing on the Internet - This is one of the most crucial things your Realtor® should do for you – data shows that 70% of buyers start their search on the internet. Your agent should post your listing to Realtor.com, one of the most heavily used websites for listings, they should also have their own website for maximum exposure.
8. Advertising Preparation and Placement (Including Internet Exposure) – Real estate brokers are also marketing experts; it takes times to write strong ads and place them in appropriate media. A breakdown of these media would be:
   • Brochure box flyers
   • Local Newspapers and Magazines
   • “Just Listed” Postcards to be mailed to the local area
   • Targeted mailings to neighborhoods and agents’ own prospect list
   • Broker-focused postcards – many buyers are working with other agents, so a targeted mailing to these brokers is included
   • E-mail “blasts” – an electronic postcard emailed to the agent’s database of prospective buyers, as well as follow up to agents.
9. Communicating with Clients – You want to know what’s happening, and a Realtor® wants you to be aware of all changes and contacts that may impact your transaction. Over the course of a listing, time should be spent communicating market events, showings, feedback and other information.
10. Scheduling Appointments – Not every prospective buyer is available to see your house during the scheduled public open house, so your agent should be personally arranging and coordinating private showings.
11. Follow-Up Showings – Interested buyers want to go back and examine your home with more care and detail, which we like to encourage.
12. Negotiating Process – You have an offer on your house!!! Now what? Even if the price is right, there may be conditions of the sale that you cannot accommodate. Your Realtor® should make recommendations in the negotiating process that will make the transaction a “win-win” for all parties, especially you!
13. Follow-up Work – Post-contract details such as surveys, inspections, lender information, etc. can be time-consuming for the seller.
14. Prepare for Closing – You’re finally there, ready to sit down at the settlement table. Your Realtor® along with your attorney, should ensure that it’s a smooth process and you understand every step.

Finally, understand that not every house sells, so there is risk the Realtor® takes on with every listing. Through it all, the personal and professional commitment of the REALTOR® is to ensure that a seller and a buyer are brought together in an agreement that provides each with a “win” that is fair and equitable.

Contact Vicki today for more information:
vicki@vickitull.com