Rehoboth Beach, DE

Every Spring, the City of Rehoboth Beach holds a Large Trash Pick-Up service for its residents. South Rehoboth is having its pick-up this week! You still have Wednesday afternoon, Thursday and Friday to set your sad sofas, gross grills, gnarly mattresses, even the kitchen sink! out on the curb to be hauled away absolutely FREE!! I just LOVE this town!

You've heard it over and over again...NOW is a great time to buy...just about anything! Cars, furniture, and of course, real estate. Many folks feel the best real estate deals today can be found in short sales and foreclosures. Although this is true sometimes, one should not assume that all short sales, foreclosures and REOs are great bargains. Here's why:

A short sale is created when the seller owes more money to the bank than he or she can recover from selling the property. This can be the case for many reasons. Perhaps the seller took out a home equity line of credit on the property, thus removing any equity that has built up during the time the seller has owned it. Perhaps the seller bought at the market's peak, and now that real estate has softened in most areas, the property's sale will not bring what is owed. Perhaps the seller overpaid for the house in the first place, and now is not able to pass his or her mistake on to the next buyer.

There are several other problems with short sales and foreclosures. Often the homes are in poor condition. Think about it...if a person either cannot make mortgage payments or is barely able to do so, she or he is not going to have cash lying around for repairs and maintenance, let alone needed improvements. I've been in distressed properties that have all of the appliances removed. Buying new will add thousands of dollars to the cost of the home.

Finally, there is the issue of dealing with the banks and lending institutions. In a short sale, the home is still owned by the seller. The seller decides to accept or decline the buyer's offer. But getting the seller to agree to the terms of the agreement and sign on the dotted line is just the first step. Next, the bank needs to approve the deal, and this can take months. Not days. Not weeks. Months. Then after waiting up to 16 weeks (or longer), THEN the contract gets accepted, rejected, or the bank's counter offer. Don't bother asking your agent to write an offer with a home sale contingency on it; it is a waste of time. And once the bank does accept your offer, closing is expected within 30 days.

In short, buyers who are in a hurry to make a purchase, have a deadline by when they need to buy, are naturally anxious or impatient people or people who like to be in control of a situation should not pursue short sales. The stress they will need to endure in order to come to closing on a short sale just isn't worth whatever savings they may receive... Not when there are plenty of sellers who bought before the spike and subsequent decline in real estate values, who did not use their home as a line of credit, who have kept their property in tip-top condition or price it to reflect the need for improvements and who are realistic about present market values and/or need to sell in a hurry for personal, not financial, reasons.

Yes, it is a great time to buy. Just don't limit your search to short sales, foreclosures and REO's. The best value often lies elsewhere.

It was bright and sunny when I stepped out the door with Merlin at 7:30am--a beautiful morning! But looks can be deceiving, as was immediately apparant when the blast of chilly air hit my face. Still, tolerating a low temperature is much easier when the views on the walk are as lovely as these (Silver Lake in South Rehoboth Beach).

Looking forward to many more sunny and even warmer days ahead!

Merlin, all snuggly and warm
after a walk in the chilly morning air.

In the next few weeks the flowers will be blooming all over the Eastern Shore as well as in neighboring states. I know it has been a hard winter on so many people and we will all welcome the warmer temperatures. What a great place to be this time of year Sussex County, DE. You have 3 beaches to enjoy and something to do everyday. Lewes, Rehoboth and of course do not forget Dewey Beach. The seasonal spots have begun to get ready for the upcoming season. March 27-29 the annual Home Show in Rehoboth Beach, for more information go to www.rehobothbeach.com. Tips and tricks to spruce up your home.

Although many people do not believe we have hit the bottom yet I still believe it is a great time to buy. Prices are down and so are the mortgage rates! We have many homes, and condo's ready for you the consumer to purchase now and be here before the summer season begins. Townhouses, Condos, and Single Family all prices ready to sell. For more information and just a few of the current homes visit www.katibythesea.com (currently under construction but available to view some of my current listings).

It's coming!!

Silver Lake, Rehoboth Beach