How to buy a second home at the beachBy Terry Plowman
When Wilmington residents Bob and Christine Watson went shopping for a second home at the beach, they unknowingly followed just about every rule that real estate agents suggest.
They knew what town they wanted to be in, they decided what type of home and amenities they wanted, they knew their price range and they got a recommendation for an agent. They also followed what has become the newest piece of advice in the real estate industry:
They researched the market on the Internet.
Technology has radically altered the search for a second home at the beach. E-mail and cell phones allow real estate agents and their clients to stay in closer contact than ever before, sophisticated software helps agents track thousands of properties and hundreds of contacts, and palm-size computers are linked directly to the Multiple Listing Service.
But no technological advance has revolutionized the buying process like the Internet has. Now someone who is dreaming of that perfect beach getaway can browse through hundreds of available properties sorted by price range, location or amenities -- all while sitting at home in Wilmington.
Or, even easier, a prospective buyer can describe his or her dream cottage to an agent, then sit back and wait for regular e-mails -- with pictures -- of properties that fill the bill.
T.J. Redefer, of Century 21 Rehoboth Bay Realty Co., says agents still use snail mail to send buyers property descriptions and pictures, but he notes that without the speed of e-mail, they could miss out on prime opportunities.
Not every property is snapped up right away, but it's not unusual for the most desirable properties to garner several offers at or above the asking price within a day or two. Because the market is so hot, agents recommend that serious shoppers be pre-qualified for a loan and be prepared to act quickly when a property matching their preferences goes on the market.
Agents also recommend that buyers educate themselves about how location, amenities, rental potential and other factors affect prices.
Because the Watsons knew they would depend on rental income to defray the cost of their beach-home mortgage, they used the Internet to research how much rent the house could command. Although he didn't use it to find an available property, "The Internet is a huge advantage, because most buyers are not there (in the resort area)," Watson says. "You can really get a good understanding of what's available, what the options are, what pricing is. You can do a lot of research on the Internet to see what's out there."
The Internet has changed the process for sellers as well.
Real estate agents used to depend on the three Ps to sell properties: they put up a sign, put it in the newspaper and prayed, jokes Pat Campbell-White, of Re/Max Realty Group in Rehoboth Beach.
The Internet and other computer-based marketing tools are part of the dramatic changes in how property is marketed. Listings have quantum leaped in the 15 years since the Multiple Listing Service came to Sussex County, says Campbell-White. Today at least 100 Sussex County agents are equipped with palm-sized computers linked to the MLS, so they can access up-to-the-minute information on properties even while driving around with buyers.
If you're ready to start shopping, here's how:
Once you find a property you like, you can contact a real estate agent. Many are listed on Delmarva Property On-Line (www.dpol.com).
- Log onto Delmarva Property On Line at www.dpol.com, which features the Multiple Listing Service.
- Click "consumer services," then "residential property search." A screen will ask what type of property and amenities you're looking for -- price range, town, number of bedrooms and bathrooms, waterfront, pool, dock, etc. Fill in your preferences.
- Click "search." You'll get a list of available properties that meet your criteria.
- Click on a specific property to see a color picture and detailed description.
Another route to the same information is through realtor.com, a site that offers extras not available on www.dpol.com, such as a mortgage calculator, message boards, and information about real estate basics, loan programs, price comparisons and other topics.
Although www.realtor.com offers extras that dpol.com does not, its listings may not be as current as Delmarva Property On Line, which agents call "real time" -- that is, as a property is listed for sale, it immediately appears on www.dpol.com. That listing may be delayed a week or more on www.realtor.com.
In addition to these two sites, many agents and companies offer their own Web sites, with links to the Multiple Listing Service. You can search for properties, then click back to the Realtor's site for more information.
One bit of advice that agents always offer is this: Find an agent you're comfortable with, and let him or her guide you through the process. Jumping from agent to agent or from company to company sends the message that you're not a serious buyer, which makes the agents less likely to focus on your beach-home dream.
Lee Ann Wilkinson, a Prudential-Gallo agent who specializes in the Lewes area, suggests that upstate residents ask for recommendations from agents they know in that area, or from friends who have worked with a beach-area agent.
How much will that perfect beach home cost? Wilkinson's listings in the Lewes area are in the $300,000 to $400,000 range, with some slightly lower and a few much higher. According to Derrick Lingo, of Jack Lingo Realtor, "You'd be very lucky to find a single-family home in town Rehoboth for $250,000. Most have gone up to $300,000 or $400,000 just in the past few years." Don't want to walk too far to the beach? Homes in the ocean block are going for $750,000 and up.
But don't despair. Agents say there are many more affordable choices: townhouses, condominiums and mobile homes (now called "manufactured housing" because they're not really mobile anymore).
Distance from the beach is a big factor in price. Redefer, who specializes in the areas around Rehoboth Bay, steers sticker-shocked shoppers toward the Angola-Long Neck area, where attractive, high-quality manufactured homes are priced from $30,000 to $100,000.
Lots in that area usually have long-term leases, with annual rents of $6,000 or less. Redefer sees the Oak Orchard area south of Long Neck as one of the next growth areas.
Wherever you find your dream beach home, the buying process can move quickly if you're pre-qualified for a loan. After your offer is accepted (it will have to be at or very near the asking price these days), the steps that follow will include appraisal, inspections, title search, a survey and, finally, settlement. These steps, which used to take 60 to 90 days, can now occur "at break-neck speed," says Redefer.
In as few as 30 days, you can be the new owner of a home at the beach. Although buying requires a bit of work, the payoff in both enjoyment and investment can be great.
"It's been fun to have the option to go down there," Watson says of his family's home on Lewes Beach. "Plus we think it was a pretty sound financial decision, even though we bought when the market was up. It has appreciated already, just since last year."