Listing Courtesy of KELLER WILLIAMS REALTY
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 email@example.com, visit more listings at www.beachrealestatemarket.com.
You could say that selling a home—in Delaware or anywhere else in the nation—is in large part “a light show.” When you dissect marketing statistics that trace the path of the vast majority of buyers, it’s clear that the first sense that comes into play in the selling of a home is sight: either a first view of the online listing, a glimpse of a property with a “for sale” sign out front, or an image in an ad or printed handout. As the saying goes, “the eyes have it.”
Selling Delaware homes really begins with the photography. Professional photographers know that whenever they aim their cameras at something they intend to capture, as important as the actual object itself is the quality of the light that illuminates it. They talk about the “shape” of the light and whether it’s “hard” (meaning shadows are prominent) or “soft” (shadows innocuous). It’s why the pros will time a listing’s emblematic “curb appeal” shot for the sun to be in the most flattering position. Inside, they may use as many as three or four hidden slave strobe lights to brighten larger rooms where the natural light is photographically uneven.
With few exceptions, light and bright is the rule of thumb for what succeeds best in selling a home. That guideline explains why most agree that the preferred wall colors are variations of “pale” this or “light” that. The perennial favorites are light beige, pale taupe, and pale gray-blue. The common denominator for room color recommendations is high to moderate reflectivity—in other words: light and bright! A recent published analysis of over 32,000 photos of sold homes seems to have been a largely unnecessary exercise: the leaders were (you guessed it) pale gray blue and light beige.
The same thinking leads to the good practice of preceding every showing and open house with a quick trip through the home, opening blinds and curtains and turning on lamps and overheads.
But there are exceptions, of course. Delaware homes with media rooms can often benefit from dimmed lighting that accentuates media screens. Likewise, a rich, darkly paneled study can do the same. Both make an interesting contrast with the rest of the home (and a dramatic break in the whole presentation). When showing a client’s property, some agents lead the guests on a predetermined route through the property. The idea is to manage the progression of impressions to achieve maximum impact.
When you begin to contemplate selling your own Delaware home, even if it’s not being planned for a while, I hope you will give me a call. I’ll come out so we can chat about some low-intensity preparations that will pave the way for a quick and easy eventual sale. There’s never any obligation—and there are often some early steps you can take that result in meaningful results! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.