Buying a Home in Southampton

Buying a Home in Southampton

  • 04/4/23

If you are looking for a summer getaway or permanent residency in a beautiful area, buying a home in Southampton may be the best option for you. Southampton is one of the most popular areas in the Hamptons, known for its lovely shops and beach activities. Before looking at homes, it may be a good idea to know key facts about Southampton and its real estate market.

Why Should You Buy a House in Southampton?

Beautiful beaches

In Southampton, there are endless beaches to explore. Whether you are interested in relaxing on the sand during sunny weather or are more inclined to aquatic sports like surfing and jet skiing, Southampton beaches are compatible with any lifestyle. There are both private and public beaches in the area. Some of the beaches include Coopers Beach and Southampton Beach further along the shoreline.

Charming downtown

Southampton is well-known for its picturesque downtown area full of local boutiques as well as high-end brands. People travel from all over the Hamptons, and the United States, to explore the quaint restaurants and shops that Southampton’s downtown has to offer. Some of these include ZADEH and Le Chef. You can get the best of both worlds by having access to fun shops and beautiful beaches in Southampton.

Rich community and culture

The community of Southampton is remarkable. Homeowners enjoy festivals throughout the year, such as the Fourth of July parade. The town is very passionate about the arts, and the community gathers to attend Southampton’s eclectic art galleries and museums. No matter the occasion, you can always find something fun to do when in Southampton.

Top 3 Neighborhoods in Southampton

1. Ocean Village

Ocean Village’s rich historical significance as home to the first boating docks in the town remains prevalent, given the neighborhood’s contemporary yacht-filled marina. Dynamic restaurants with excellent views of the waterfront are lined along the neighborhood’s edge. It is celebrated for its fun atmosphere and gorgeous scenery.

2. Tuckahoe

With stunning buildings made of marble, Tuckahoe is the perfect village for a fun and bustling atmosphere in the Hamptons. The town has lots of charming shops and restaurants to explore, and it is highly walkable. One of the most popular places includes the seafood and steakhouse at the Tuckahoe Inn. There is also a lively farmers’ market on weekends.

3. Shinnecock Hills

Home to a luxury golf club, Shinnecock Hills Golf Club, Shinnecock Hills has beautiful scenery to behold with rolling, green hills and crashing, blue waves. The homes in the area are stunning, which explains why Shinnecock Hills is one of the most sought-after areas in the Hamptons.

What to Know About Buying a House in Southampton

Median Home Price

The median home price in the area can help you gauge the kinds of prices you can expect in Southampton, depending on the area from which you choose to buy. The median home price in Southampton as of January 2023 is $2,474,500. This is simply a median, and thus when searching for that perfect home for sale in Southampton, it is important to keep in mind that there are lots of homes more expensive and less expensive than this price. It is worth noting that this was a large jump from the median price in December 2022, which was $1,395,000. Thus, it is important to keep an eye on when homes are at their optimal price.

Property Taxes

Property tax rates are helpful to keep in mind because the higher the rate, the more you will have to pay. Thus, the more expensive your home, the higher tax you will need to pay. Suffolk County, where Southampton is located, currently has a property tax rate of about 2.42%. So, if your home is at the median price listed above ($2,474,500), then your average taxes will be about $59,883.

Requirements for Buying a House in Southampton

Conventional Loans

Conventional loans conform to requirements set by Freddie Mac and Fannie Mae. In Suffolk County, conventional loan limits are $1,089,300 for one-living unit homes to $2,095,200 for four-living units.

FHA Loans

FHA loans are government-backed loans insured by the Federal Housing Administration.
FHA loan limits in Suffolk County range from $1,089,300 for one-living unit homes to $2,095,200 for four-living units.

VA Loans

VA loans are only available to veterans of the United States Armed Forces. The VA loan limit in Suffolk County is $1,089,300.

Money-Saving Tips for Buying a Home in Southampton

Find the Best Mortgage Rate

Mortgage rates vary depending on the lender, so finding the best mortgage rates for your budget is key.

Use a Bigger Down Payment to Keep Monthly Payments Down

Investing more money on your down payment can save you lots of money when you have to pay mortgage rates. This is because you are seen as less of a risk to mortgage lenders. Thus, before you buy a home in Southampton, it may be helpful to save up some money for the down payment rather than having less upfront and agreeing to pay more later with interest.

Increase Your Credit Score

Another way to increase your mortgage lender’s confidence in your ability to make payments is to have a high credit score. Before buying your home, strategize ways to boost your credit score before you start investing money. Having a lower credit score could also help lower down payment requirements as well.

Use a Commission Rebate to Save Money

When you use a commission rebate, you are agreeing to receive a portion of your agent’s commission. This is obviously helpful in ensuring you get money back from your purchase of a new home. Not all states offer this, but since New York does, it is worth trying to use a commission rebate with your agent.


Southampton is a highly desirable town in the Hamptons with amazing beach views and stunning homes. You know now why Southampton is so popular, the best neighborhoods to explore, real estate information about the area, and the requirements for buying a home in Southampton.

Southampton real estate is definitely a viable and logical choice for many searching for a home in the Hamptons. There are various strategies for selecting the best home for you, but knowing some of these tips will ensure that your home-buying experience is a bit less stressful. Contact Margot Reutter today to get started on your home search!

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