In 2025, Delaware’s housing market presents a unique opportunity for home buyers. Homes sold with a price drop have increased by 23.97% Y.O.Y., creating a more balanced market.
This guide provides a detailed plan for buying a home in Delaware, navigating its challenges while leveraging its benefits.
Key Takeaways
- Step 1: Figure out your finances and budget.
- Step 2: Get pre-approved for a mortgage.
- Step 3: Find your dream home in Delaware.
- Step 4: Make a competitive offer.
- Step 5 Complete due diligence with inspections.
- Step 6 Secure financing and insurance.
- Step 7 Prepare for and close your purchase.
Current Delaware Housing Market Overview (2025)
The Delaware housing market takes a shift in 2025. Buyers have more leverage with the selling of homes below the price list, with an increase of 29.7% Y.OY. and 16.74% inventory growth.
The median home sale price has reached $359,200, which is below the national average, making affordable housing possible in the state.
How to Buy a Home in Delaware: 7 Steps
Step 1: Figure Out Your Finances
Before searching for homes for sale in Delaware, set a clear budget. The state’s cost of living necessitates careful financial planning that extends beyond typical home-buying expenses.
Understand affordability with Delaware’s average effective property tax rate (~0.55%) and standard homeowner’s insurance, typically rolled into monthly payments. For context, Delaware’s closing costs average 5.4% of the home price.
Get your down payment ready.
In Delaware, FHA loans typically require a minimum credit score of 580, while conventional loans usually need at least 620.
First-time buyers can access state programs like the DSHA Welcome Home with Smart Start loan, the First State Home Loan Program with 3% assistance, and the Diamond in the Rough Program offering 5% help through an FHA 203k Limited loan.
Get pre-approved for a mortgage
In 2025, the average 30-year fixed mortgage rate is about 6.00%, while the 15-year fixed rate is around 5.19%. To complete formal verification, buyers should gather pay stubs, tax returns, bank statements, and identification.
Step 2: Find Your Dream Home in Delaware
With a set budget, you can find your dream home faster. Houzeo, Delaware’s best home buying website, allows you to browse through the latest listings with smart filters for price, ZIP code, schools, etc.
Whether you are looking for homes for sale in Wilmington, Dover, or Newark, the best place to buy in Delaware depends on your priorities:
- Wilmington: Stable market with slight gains. Median home value $319,420; taxes about $1,792. Buyers have moderate leverage.
- Dover: Balanced market with steady demand. Median home value $339,753; taxes around $1,231. Buyers get more time to decide.
- Newark: Active market with strong demand. Median home value $357,120; taxes about $2,439. Prices are higher but steady.
Step 3: Make an Offer That Wins
Delaware buyers usually put down earnest money deposits of 1–2% of the purchase price. Offers should include financing and inspection contingencies for protection. The average closing timeline is about 30–45 days.
Step 4: The Crucial Due Diligence Period
In Delaware, buyers usually have 7 to 14 days for inspections. A general home inspection takes about 2 to 4 hours and is the most common. Radon testing is strongly advised, and termite inspections are often required. Mold checks may also be necessary depending on the property.
Step 5: Secure Your Financing and Insurance
Complete lender’s appraisal verification within 7-10 days. Final mortgage underwriting usually takes 7-14 days. Delaware does not mandate earthquake insurance but standard homeowner’s coverage plus title insurance is required.
Step 6: Prepare for Closing Day
Expect closing costs around 5.4% of sale price covering appraisal fees, lender charges, title insurance, and attorney fees. Delaware law requires an attorney typically at closing. Review the Closing Disclosure document at least 3 business days before signing. Conduct final walk-through before signing documents.
Step 7: Welcome Home!
Delaware offers some property tax payment plans in New Castle County due to reassessment shifts but does not have a major statewide Homestead Exemption. Take advantage of first-time buyer benefits like tax credits of up to 35% on mortgage interest (max $2,000 annually).
Tips for Delaware Homebuyers: Do’s and Don’ts
Do:
- Get a formal mortgage pre-approval before serious house hunting.
- Use a licensed Delaware real estate agent familiar with local nuances.
- Budget for common inspections, especially radon and termite.
- Research first-time buyer assistance programs and local funding resources.
Don’t:
- Skip the due diligence window or rush through inspections.
- Neglect budgeting for closing costs around 5.4%.
- Assume all regions in Delaware have the same market conditions.
- Overlook legal requirement for attorney involvement in closing.
Conclusion
Delaware’s 2025 housing market offers opportunities across competitive yet stable areas. With careful preparation and understanding of local financing and inspection requirements, buyers can navigate the process confidently.
Begin with financial readiness, use state programs, and work with knowledgeable professionals to find your home in Wilmington, Dover, Newark, or Middletown.
Frequently Asked Questions
How long does it take to buy a house in Delaware?
It typically takes 30 to 45 days from contract signing to closing, though timing can vary with market factors and financing speed.
➡️Read more to know more about preparation for the closing day
What credit score do I need to buy a house in Delaware in 2025?
The minimum credit score for FHA loans usually requires a minimum credit score of 580, while conventional loans expect 620 or higher.
How can I find my dream home in Delaware?
Find your home in Delaware depending on your priorities, whether it’s Wilmington with a stable market and moderate leverage, Dover with steady demand and more time to decide, or Newark with strong demand and higher but steady prices.
