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Learn About Buying Del Mar Homes
Fixed Rate Loans in Del Mar
Advantages: As indicated earlier, predictability is the biggest incentive for choosing a fixed-rate loan for your Del Mar real estate mortgage.
Disadvantages: Fixed rate loans usually come with higher interest than the start up interest rate on a fixed loan. Down payments for your Del Mar on conventional, fixed-rate loans are usually higher than the down payment required for an ARM.
Del Mar Real Estate Cycles
During a slow economic time, fewer people are buying homes in the Del Mar market. Even so, some homeowners find themselves in a situation where they must sell. Families grow beyond the capacity of the home, employees get relocated, and some may even find themselves unable to make their mortgage payment - perhaps because of a layoff in the family.
During sellers' markets, Del Mar real estate sells quickly and sellers have a lot of pricing power. As a result, prices rise more rapidly than at other times. During buyers' markets, Del Mar real estate may sit on the market for a while before selling, so sellers become more flexible and may even drop their prices.
Building Del Mar Home Equity
A popular question from prospective Del Mar homebuyers relates to building home equity. Buyers like to estimate how much a home may increase in value based upon past appreciation. One of the many advantages of home ownership is that appreciation is based on the home’s market value rather than on the actual dollar amount invested or the down payment so that a $100,000.00 home that appreciates 5% is now worth $105,000.00, especially in Del Mar.
With a typical 30-year loan, most of your monthly payment goes toward interest payments with only small amounts going to the principle in the early years. Only half the principle is repaid in the first 23 years of the loan. You can build Del Mar home equity faster by choosing a 15-year loan instead of a 30-year loan.
The Benefits of Selling Del Mar
As you know, you are allowed to sell your Del Mar principal residence once every two years and exclude up to $250,000 ($500,000 for a married couple) of the gain of the sale on your Federal income tax. Please note: This is not a once in a lifetime tax savings and you don’t have to be any certain age or buy a more expensive property. If you meet the two-year residence test you can sell your principal residence every two years if you are so inclined and the market cooperates. But this tax saving does not affect rental property unless you convert the rental to your personal residence, live in it for two years and then sell it.
What Makes Del Mar Sell?
Books have been written about this topic but to be concise, successful sale depends on six factors: Price; Terms; Location; The Home’s Condition; The Home’s Accessibility and the Marketing exposure the Del Mar receives.
Price is what a willing seller and a willing buyer agree on. Price is determined by the current market, which fluctuates causing home values and prices to fluctuate. Often Del Mar that does not sell is over-priced for the current market. Terms can vary as well. Some owners want payment in full, some are willing to carry a second.
Location is a major consideration in pricing and desirability for Del Mar. Has the neighborhood gone to pot or does it look like a street at Disneyland? Are there open spaces nearby or is the home located in the middle of commercial district?
When Del Mar Does Not Sell
Let’s say a home is in excellent condition but simply messy. The cat box needs changing, the dog dish is a mess, the dishes haven’t been put into the dishwasher and the beds are not made. Should these conditions affect the price of the Del Mar? No, but they do. Take two identical houses next door to each other and priced the same. The sparkling clean house will sell much faster than the messy house and the messy house will more than likely sell for a lower figure. This is true of Del Mar as well as real estate nationwide.
When a home does not sell, the owners tend to think that the REALTOR didn’t do a good enough job of promoting the property. There is a difference among agents and brokers and some will promote a property more than others. However, the main and most important method of promoting Del Mar for sale is listing it in the local MLS.
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