What makes a decent looking 3bed/1bath beach house (1block from beach) sell for under $300,000.00?
I realize you have to do research into the property to see if there are any serious stuctural issues; however the particular house in question looks like it just needs a face lift. Looks like you could put in $12K to make it look like any other up to date house. I'm just curious why people don't do this. If you fix it up, what would the estimated resale be for a home 200yds from the beach, especially when surrounding bayside 3bed/1bath condos are going for $500,000/$600,000.
If a property is selling for under $300,000 one block from the beach, it is most likely a land lease situation. Many of the properties in Rehoboth by the Sea (near Dewey Beach) are land lease properties. The owner of the lease has notified the real estate community that they will not renew the lease; they may consider an offer to purchase the land under which the house sits. Currently, most of the leases have anywhere from 12 to 15 years left on the lease, and it is difficult to even get a mortgage on these properties.
Land lease - condition of home - owner motivation - could be many reasons. Most likely, however, is land lease versus 'in fee'; you do not own the ground in a land lease situation, only the improvement on the ground. What happens when the lease expires? That's anyone's guess. The lease may be renewed by the owner at the current rate or at a new rate - or the lease may be discontinued at that point. You are then left with a structure that has little or no value.
Land lease, you do not own the land. There are quite a nunber of properties like this in Dewey.
Chris Kavanagh
Coldwell Banker Residential Brokerage
Bethany Beach, Delaware 19930
302-829-9068
chris@5starbeachhomes.com
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