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Buying and Selling Del Mar Homes
Guidelines for Buying Del Mar
Let’s say everything is a GO! You have found the perfect Del Mar home. You know you can afford it and it is actually priced below what you expected to pay. What a bargain! Yes there are bargains to be found in Del Mar. At this point it is fine to put in an offer on the property but only with a well-planned contingency. Of course, it the home is going to be financed, the lender will want a Home Inspection before agreeing to lend money on the property. However, you need to protect yourself by making an offer SUBJECT TO a clean bill of health from the Home Inspector of your choice. This kind of a contingency gives you an out if the inspector finds a problem with the roof, or foundation or other structural problem that was not apparent to the seller or to your agent. This does not mean you will not buy the house but you will have a good reason to renegotiate the price with the seller.
Del Mar Homebuyers Quandry
Armed with the Comparative Marketing Analysis, it is time to approach your lender to see if you can get financing without selling your current Del Mar. In most cases, financing will be contingent upon selling your home but you may be able to obtain interim financing sometimes known as a Bridge Loan.
Del Mar: Art and Science
Buying a piece of Del Mar real estate is a science but buying your Del Mar home is an art. The science part involves getting the legal and financial parts down while the art is finding the Del Mar property that you’ll be happy with.
The total universe of possibilities within the universe of Del Mar real estate is quite diverse but narrowing your search ahead of time will help keep things in perspective.
In general there are two phases to any Del Mar real estate search. In the first phase, you get a feel for the different areas and an idea of what is being offered at what price. In the second phase, you search for the Del Mar real estate that meets all or most of your specifications.
Green Remodeling Your Del Mar
Energy conservation. The average Del Mar today uses systems for heating, ventilation and air conditioning, and most homes are not built as efficiently as they could be, resulting in high energy consumption. The U.S. Department of Energy believes if current buildings were green-improved, they would use $20 billion less in energy per year. Del Mar green remodeling puts a strong emphasis on making homes as efficient as possible with modifications such as energy-efficient appliances and thermostats that can be programmed at different temperatures for different times of the day.
Rent or Buy Del Mar
In the early years of your Del Mar mortgage, nearly all of every monthly payment is interest. This means you are only paying off a tiny bit of the loan principal, but it is good news in terms of tax savings.
The monthly payment for a $100,000, 30-year, 8% mortgage on your Del Mar would be about $734. In the first year of your mortgage, $7,970 of your $8,805 payment or 91% would be deductible as mortgage interest. Even in the tenth year, almost 81% of your payments would be deductible. What this is worth to you depends on your tax bracket but this tax savings built into the home-buying equation is why you can afford to make higher mortgage payments than your current rent payments without squeezing your budget. There is no similar tax subsidy for renters.
What Makes Del Mar Sell?
If your only reason for selling your Del Mar is for the purpose of taking your profits there are a couple ways to approach this. Assuming you have lived in the Del Mar for two years so you can avoid federal tax consequences, if you sell when prices are high and rent until prices come down before buying a replacement home, you will have maximized your profit. Remember, if you sell when prices are low, you will still make a profit and be able to buy a replacement home while prices are still low.
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