Listing Courtesy of OCEAN ATLANTIC SOTHEBY'S INTL REALTY
When you own the Rehoboth Beach home your family lives in, you are by definition a real estate investor: it comes with the turf. Your investment is essentially a passive one. Until the day you decide to sell and move on, any improvement in its value is secondary to how well it serves to shelter your family.
How you think about your investment—and how you proceed to manage it—is altogether different when you buy a home purely as a financial venture. For one thing, you face an immediate strategic decision: will you be flipping for a quick short-term profit, or aim for the long term through a buy-and-hold strategy? You have to weigh some pros and cons in order to make the right decision.
Pro: Capital is Freed
A flipping strategy minimizes the amount of time your investment capital is committed, freeing it for other uses. Should you identify another potentially lucrative investment, you will be able to take advantage of it.
Con: Unexpected Challenges
While flipping for short-term profit has definite ‘hands-on’ appeal, first-time investors can be surprised by unexpected complications. Properties that appear to be undervalued (and ripe for a quick flip!) may require costly fixes. Overspending on renovations quickly eats into profits, but underspending can lead to a lengthier holding time. Experienced Rehoboth Beach flipping veterans have learned to successfully gauge a property’s true turnaround value.
Additional Consideration: Taxes
Sussex County flipping has tax implications that impact the bottom line. Profits from a property owned more than a year are generally taxed at the ordinary income tax rate, while a property held for less than a year may be taxed at the capital gains rate. Local and state tariffs need to be considered as well—this is where input from a qualified professional is important.
Pro: Passive Investment
If management is outsourced to a professional property manager, the buy-and-hold strategy will require less personal attention than flipping does. Preparing a property for a flip often involves considerable time commitment and adept contractor schedule-juggling.
Con: Management Costs
The passive investment advantage holds true if outside management is contemplated— with commensurate expense. If you enjoy the challenge of successfully managing a property, this negative doesn’t apply.
Pro: Fewer Properties Need To Be Identified
Ultimately, successfully executing a flipping strategy means scrutinizing a huge number of properties over the course of time. In contrast, a buy-and-hold strategy necessitates finding only a few great bargains. Pursued intelligently, both buy-and-hold and quick flip strategies have proved profitable for many investors. Both call for finding solid value in Bethany Beach properties—which is where giving me a call comes in!
If you’ve learned to skip past onscreen click-me’s with hyperlinks reading, “Top 10 Secrets” or “Best Kept Secrets of the Pros,” you can usually rest assured that you’ve saved yourself some time. No matter whether the long-hidden secrets deal with diet tips, shopping discounts, or travel destinations, nine times out of ten the real secret turns out to be the agenda of whoever is promising the “secrets.”
When it comes to selling a house—here in Rehoboth Beach, DE or elsewhere—let’s face it: there aren’t a lot of secrets left out there. Since selling a house is the professional focus of more than a million of us Realtors® (and since we’re a communicative bunch), it’s hard to believe that many sure-fire selling gambits have eluded discovery.
That’s why, when I stumbled upon a cable channel website’s “10 Best-Kept Secrets for Selling Your Home,” I was more than a little startled that there were ten of them left.
The countdown’s initial secret (#10: “pricing it right”) confirmed my (and probably everybody else’s) suspicion that the remaining nine would offer few surprises—but in the spirit of discovery, I clicked onward, anyway. Soon more secrets, like maximizing area lighting; hiring the right agent, and avoiding expensive remodeling projects had seen the light of day. The rest of the secrets are so well known I needn’t go into them—but there was one with phrasing I hadn’t heard before. It was Selling Secret #1: “The first impression is the only impression.”
The text explained that if the exterior of your property isn’t an immediate hit, “no matter how good the interior of your home looks,” your goose is cooked “because you never have a second chance to make a first impression.”
Sure, it's happened that buyers who have been put off at first by some facet of a home’s exterior have gone on to fall in love with an inviting interior. Experienced Rehoboth Beach, DE agents know that first impressions are sometimes countermanded by stronger second impressions.
However, in the vast majority of cases, there will be no second chance. First impressions matter, and unless the home is priced and marketed as a "fixer" or other "upside potential"-styled listing, it will be well worth the effort for the seller to focus efforts on all the sensory aspects that go toward creating that first impression.
In the meantime, if you plan on selling your own Jamestown house in the upcoming months, it’s out in the open that the right agent will be one whose “secret” is a wide-reaching marketing plan combined with organization and persistent effort. Give me a call to discuss your goals! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.