Buyer FAQs

With low interest rates in resale and mortgage payments lower then rental rates, I believe it is a great opportunity to buy a home — but the decision is a highly individual one. In any market we have opportunity, and I believe those that can obtain a mortgage should seek this opportunity. Real Estate is an investment that serves many purposes. Any time can be either the wrong or the right time to buy. Study the market to see if prices are rising, falling or standing still.

There are indexes that track the rent-vs-buy numbers, and they might say that it’s cheaper to rent in a certain area than to buy. If it’s purely a monetary decision, then renting in those areas may be right for you. However, when you can’t paint the colors you want or add features to your rental home, then owning affords you the control you want. You’ll also not be forced to move because your landlord wants to sell. Renting vs buying is a highly personal decision when looking at Delaware real estate.

The Internet has changed the way buyers search for homes in Delaware. You can start a lot earlier in the process, and spend more time doing your own research. So use the Web for early research. When it comes to actually working with a Realtor, you can use someone you’re referred to by a friend or relative. Or, you can begin to ask questions via email and see which agents are most responsive and helpful.

This is mostly personal preference. Normally the latest bells and whistles are in the new homes. However, if cost and the ultimate investment value are important to you, sometimes you can buy an existing home for less than you could duplicate it for as a new home. Delaware real estate consists of many areas that have previously been developed, so it is more common to find a Delaware property that has existed for awhile.

Foreclosures are definitely an option to consider. We have mortgage products like a 203K Rehab loan that assist in rehabbing the property. Our goal is to buy the property below today’s market value based on condition and finance a rehab amount. Once the property settles, the mortgage company pays the contractor 50% of the allocated rehab amount and gets to work on the property. Once the contractor has completed the work you have a nice property, just the way you want it. Investors, this is the way to go. In most cases the title is clear, taxes are paid and you could have a nice turn over for rent and cash revenue.

Most analysts will tell you that the days of rapid price appreciation are finished. There will always be areas that are more desired by buyers, and they’ll hold value better or appreciate in value faster. However, your decision about where to buy your Delaware home should be based more on how you’ll enjoy living there and on how far from your job it’s located. In the Delaware real estate market, it is important to find an area that works for your needs. In Delaware there are great locations everywhere, so it is a personal decision and what is needed to fit your lifestyle.

Balance the market conditions, current inventory of homes listed and the advice of your agent in deciding on a first offer. Too low and you could get your walking papers. Be realistic in trying for that bargain buy. The Delaware real estate market is a competitive market. When looking at real estate it is important to understand that there are competitive buyers in the area. Delaware real estate is desirable for its low property taxes and remains a moving market in the current market conditions.

Asking your real estate agent for a mortgage broker recommendation is one way. Another is to get a referral from a friend or relative. Or just visit some of their offices and ask questions. Most of them are dealing with the same major banks, but some will have lower fees. We work with many mortgage brokers and are more than happy to recommend a good fit for your Delaware real estate transaction.

Yes, but it’s not nearly as easy as in the past. FHA backed loans can still be had at 3.5% down payments. We have many small rural areas that allow 100% financing to qualified buyers under USDA. We have conventional products available for 10% down. The 203k Rehab loans and the vacant home loans are great products worth looking into.

Few market analysts will predict this, but the optimists say five years, and the pessimists say 8 years or longer. Of course, real estate is local and there are now areas showing appreciation that’s greater than expected.