Buying Ocean City Real Estate

Two beach chairs and umbrella on sandy beach

Buying Ocean City Real Estate

Buying real estate is a series of sequential steps that when properly executed will lead to you getting a good deal on a property through a skillful and fun process. Before Buying, I'd like to cover a few items that are frequently asked (see list below). Should you have any additional questions feel free to contact me anytime and I will be glad to address them. Start your Beach Search Here.

Buying Time-frames- From a signed contract to settlement is typically 45 days. This can be shorter or longer depending on type of financing. Cash deals can be completed under 30 days, while a VA or FHA loan can take 60 or more days.

Condominium Fees- Basic condo fees cover building insurance/ flood insurance, common area maintenance, professional property management, amenity usage and maintenance, reserve fund build-up, trash pick-up and water usage.

Closing Costs- Closing cost amounts will vary depending on the purchase price, property type and overall terms of your deal. In general, closing costs will run 3%-5% of the total Purchase price.

Property Insurance- If you are buying a condo, the only insurance that your typically required to have in this situation is Betterment and Improvements, also known as an HO-6 Policy. The HO-6 policy covers the interior of the unit, your personal belongings, furniture and any improvements that you make to the property.

Ocean City Mortgages- As a Buyer, you have the option to choose any lender you wish. I recommend using a local lender to help navigate you through the process. At the Beach, we have a couple more hurdles for lenders to jump through and if the lender isn't familiar with the process it becomes very difficult. Make sure your lender is aware that you are buying a condo in a Beach town.

Rental Mgmt. Costs- Many Buyers take advantage of Ocean City's robust rental market to offset the mortgage, taxes, condo fees, and general costs. Most popular question is, How much does the management company charge? The management fee varies from 12%-16% and the cleaning fee is $85-$125. The Town also requires a Rental License and Noise Control Permit. The license fee for renting a residential property is $116.00 due on May 1 of each year. The license expires April 30 the following year. In addition to obtaining the required rental license, any property owner who provides shelter on a temporary basis must also obtain a Noise Control Permit. The permit fee is $25.00 and is due and payable at the time of licensing as outlined above.

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