Frequently Asked Questions:

What can I expect to pay for a single-family home in Rehoboth Beach?  How about a condo?
Currently there are 25 single family homes for sale ranging in price from $430,000 to $2,500,000 for an average of $955,000.  There are 20 condominiums for sale ranging in price from $225,000 to $799,000 for an average of $526,000.

When is the best time to buy?  
Many people think that fall is the best time to buy because the sellers have realized the rental income for the year; however, properties can come on the market anytime during the year.  

Can I buy a house and have a positive cash flow if I rent?
Probably not; my rule of thumb is that you get 5% of the sale price as rental income.  For example, a $400,000 house will produce about $20,000 in rental income for the summer season.  At 10% down you have a $360,000 mortgage which will cost you about $2,880/month or $34,560/year (this assumes an 8% mortgage rate).  This does not consider other expenses.  Obviously, if you put down enough money, you can get positive cash flow.

How much money do I need for a deposit on a home or condo?
Second home mortgage lenders often require 10% down.

What does it cost to buy?
My rule of thumb is that the closing price is often 3 to 4% of the sales price.  This includes all the fees associated with mortgage fees, inspections, attorney fees, taxes, etc.

How healthy is the rental market? Will my house rent?  
My experience with the rental market is that you can almost guarantee the rental income for the summer season. Even in a bad economy, people still take vacations at the beach; and those who normally fly off to Europe stay home and go to the beach because it is less expensive. 

What are the tax advantages to buying beach property?
You can deduct the mortgage and taxes; and if you rent, you can deduct all your expenses.  But you must claim the rental income.

Why do people buy in Rehoboth Beach?
Most people I sell to have vacationed in Rehoboth Beach for some time or they know family and friends here who own a place and know the town.  The convenience to Washington DC, Philadelphia and Wilmington is a big draw as well.  I find that most of our summer visitors come for the great restaurants, unique shopping and immaculate beaches.  Check out the town's web site for more information.

What is Rehoboth Beach like in the winter?
It does quiet down versus the summer, but there are still many things to do.  On many of the weekends after the season ends you will find theme events including jazz festival, seawitch festival, film festival, Christmas parade, etc.  In recent years, it has become increasingly difficult to rent rooms for New Year's Eve.