Listing Courtesy of JACK LINGO REHOBOTH
Many people don’t fully understand why it is that St. Patrick’s is the perfect day for selling a Rehoboth Beach home, or for buying one. But if ever there were a right time to explain it, this is it. There is one drawback to any such explanation, though: namely, that it makes so little sense.
That does not seem to make much difference to a lot of real estate industry marketing supply companies. I can bear witness to that fact, in the form of the postcards and various art pieces that are pitched to Realtors en masse ahead of every St. Pat’s. As you might guess, they are green (usually very green), and almost without exception bear some rendition of a four leaf clover. Also rainbows, pots of gold, wee leprechauns wearing green top hats with buckles on them, and sometimes horseshoes (to indicate the Luck O’ the Irish, of course).
What could this have to do with selling a Rehoboth Beach home, or buying one? That’s very hard to pin down. There is the simple good will postcard, that says, “Happy St. Patrick’s Day” with no further connection. That’s a nice thought, certainly, and not risky. Who wouldn’t want to have a happy St. Patrick’s Day? There is one with a good-looking home at the end of a rainbow, with a wee little leprechaun holding a “Welcome Home!” sign—certainly a strong connection between selling an Sussex County home and the celebration.
One of the best ones is the poster that features two shades of green, a cartoon three-leaf clover (mistake there, if you ask me) upon which is printed in Celtic-looking letters, “You don’t need to have the ‘Luck of the Irish’ to sell your home.” You have to like that one, because it doesn’t discriminate against people who aren’t Irish (the closer you get to St. Patrick’s Day, the more you run the risk of seeming to snub the non-Irish among us).
There is one postcard with a lady bug crawling over clover leaves emblazoned with a sentimental poem, but the emotionality of the poetry is tempered by the heading, “For all Your Real Estate needs just give me a call!” Balance is important on St. Patrick’s Day…but it’s not clear that the card with the green beer mugs got that message (which is “Happy St. Patrick’s Day! Remember, parade watching is like real estate. Location, location, location.”).
One that also tips the scales in the direction of crass commercialism is the picture of the big pot o’ gold brimming with gold coins. It says, “It takes more than Luck to sell your home.” I’m not sure what the St. Pat’s message is for that one—that selling your Sussex County home requires you to go out, find a leprechaun or rainbow, and wangle a pot o’ gold? It’s simply not the case. If you ask me, an experienced Realtor with a great marketing plan and a reasonable price will do the trick better than pots o’ gold or four-leaf clovers. Still, that can’t keep me from wishing you a terrific St. Patrick’s Day, as too!
In Rehoboth Beach real estate, there are happy words (“sold!”) and there are troubling words (“default”). Because of the associations they conjure up, some phrases just automatically make us happier. Two of the leaders in the positive category are the magical words, ‘vacation home.’ All by themselves, they can trigger a smile. Why not? “Home” is comforting; “vacation” is fun. Put them together in “vacation home” and you’ve got a double positive. It’s a real estate equivalent of Jimmy Buffett’s Cheeseburger in Paradise.
As the economy recovers, some American families are doing more than just smiling at the idea. The Wall Street Journal says that vacation home sales jumped more than 50% in 2014—up from 717,000 the year before. Quicken Loans reports a jump “in both the number and dollar volume of second home mortgage applications.”
To a Rehoboth Beach homeowner with sufficient wherewithal, there are some practical, real life incentives for moving the idea from daydream to the ‘to do’ list. The primary motivation is what comes first to mind. Just as a vacation is a welcome respite from the day-to-day, a vacation home needs to qualify as a destination that is pleasurable in itself. Where that could be differs for everyone, but whether it be the beach, desert, mountain, lake, cultural metropolis or outdoor sporting mecca, any Rehoboth Beach homeowner’s vacation home should be a haven inherently suited to relieving the stress of the workaday world. Although it would seem to be properly classified as a pure luxury expense, vacation homes can be more financially sensible than that.
The Kiplinger web site has a number of observations for vacation home buyers. It finds that some mortgage interest rates on second homes have lowered to first-home rates. Another alternative is the “favorite source” for all-cash purchases: a home equity line of credit. According to Kiplinger, “Mortgage interest on a second home is deductible on as much a $1 million in principal for both homes combined.” If lenders calculate eligibility via the Fannie Mae and Freddie Mac guidelines, a borrower’s total debt payments should not exceed 36% of gross income…but if the second home is to be rented, that income can be part of the calculation.
Which brings up some other possibilities. A vacation home can not only cut down on vacation expenses (hotel and restaurant prices are rising, after all); if rented out some of the time, it can contribute offsets to its cost. To take advantage of IRS rules regarding personal versus rental classification, you should consult a tax expert. Since a quarter of vacation homes are rented out at least some of the year, it’s a tactic that deserves investigation.
Perhaps the advantage that’s talked about most for second home buyers is the contribution it can make toward retirement. If a retiree ultimately converts a vacation home to principal residence, profits from the former home can make a handsome contribution to the retirement nest egg. And if by retirement time that vacation home has been paid for in whole, it can make for an even more pleasing financial picture.
For an Rehoboth Beach resident with sufficient resources, purchasing a vacation home can be a practical as well as emotionally sustaining venture. If it sounds like an idea worth investigating further, talk it over with your financial advisor—and I’ll be standing by to help with any and all real estate considerations! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.