Greenbook: A Local Guide to Chesapeake Living - Issue 5 | Page 14

greenbook | spring 2015

from. Expect to see much lower
density of development with
larger lots for single family
homes, new construction,
modern layout and amenities, and
a much lower price point typically
in the $270,000 - $500,000 range
for planned communities of single
family homes. Examples would
be beautiful communities that the
local Schell Brothers developers
produce – Senators in Lewes, and
Sawgrass in Rehoboth Beach.
Expect to see town homes and
condominiums mixed in with some
of these communities. Other more
established town home and
condominium communities that
have high resale demand are
The Tides (top end of Rehoboth
Avenue) at the Route 1 Service
Road, The Grande At Canal Point
(single family and mixed
development), and the higher
budget canal lots of Canal
Corkran. These latter three
communities are within easy
walking and biking distance of
the Rehoboth Beach boardwalk.
While the ‘Beachfront Bargain”
is quite elusive at the Delaware
shore, there are still newer
communities laid out in the past
5 to 15 years that contain a mix
of lot pull downs from in house
developers (LC Homes, Capano
Homes, NV Homes, for example)
and buy to build (no builder tie in).
There are many fine local home
design and construction firms
producing high quality work on
lot purchases in communities such
as The Glade (Rehoboth Beach),
single family home lots in
Kinsale Glen (Rehoboth Beach),
and similar small scale sub
divisions in Lewes, Dewey, or
Bethany/Fenwick. Ask your
REALTOR® for multiple
recommendations and to
facilitate a meeting for you.
Investment Property Buyers
While your REALTOR® can
certainly facilitate the property
search for investment property
clients, I would recommend that
you also work with a Financial
Planner if your needs fall into the

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arena of beach property purely
for investment purposes. Your
options could include 1033 rental
property exchanges for rental
properties sold outside of the
area (or state), purchasing
property as part of your
investment portfolio (in an IRA
or 401K), or buying beach
property or multiple dwelling
units as additional sources of
income. Depending on your needs,
the old adage, “Location,
Location, Location” holds true.
If looking for maximum income
potential for your rental
property, you should buy in
downtown Rehoboth, Dewey, or
Bethany Beaches and target the
weekly summer rental market.
An example of rental income
for a modest 1940s beach
cottage that a client has bought
on the third block in Rehoboth
Beach (pictured below) is around
$48,000 for short-term summer
rentals (mainly by the week),
and $12,000 for long-term winter
rental. $60,000 rental income
per annum on a 3 bedroom 1.5
bathroom, central air property.
If buying beach properties for
rental outside of the downtown
area, or in the quieter town of
Lewes, while these properties
still make attractive rental
potential, expect these locations
to be more appealing to long-term
annual tenants.
A point of note for investment
buyers, and also for property
owners looking to sell to
appeal for investment clients
While the property needs to be
priced right for location, age,
amenities, and the local market,
investment clients should note
that the buyer is looking at the
property from the perspective
of a rental, and not to live in
himself or herself. As when
listing or purchasing such
properties, always ask
yourself, “What would be the
return on investment of this, or
that (upgrade)?” “Is it needed in
the context of rental income?”
Use a REALTOR® who has

professional training in home
staging to appeal to the rental
market. Alternatively, ask your
REALTOR® to recommend
local home staging companies.
For example, a property I
recently previewed for a client
I recommended would make a
great investment property due
to its location, and the condition
of the property. However, as
a primary residence, the 1950s
kitchen and bathrooms, while in
great shape, would benefit from
an upgrade prior to listing. Since
the sellers did not want to invest
any additional money into a
property that they had
maintained beautifully, my
recommendation for the
marketing plan for the listing
was to price and market to
appeal to investment buyers.
The property had been in the
same family for generations, and
as such, the furnishings were
more appropriate as a full-time
home for an older couple. I
recommended re-staging the
property with simpler, neutral
furniture, removing the many
area rugs throughout the home
that were hiding the low
maintenance beautiful hardwood
floors (sand at the beach!), and
removing many personal
accessories. I did not recommend
upgrading appliances. They were
clean and in great working order,
suitable for a rental property.
Working in conjunction with their
Financial Planner, the client
would prefer a quicker sale so
that they could move on to a
newer phase of their life. The
property is located right next
to two brand new single-family
homes – same great location that
would appeal to weekly beach
tenants, but not in the same price
point for primary and second
home owners. You and your
REALTOR® should be prepared
for an open, honest business
dialogue when listing or
viewing property – on pricing,
and on your selling goals.
In summary, when looking for