Can You Buy A Home While On Vacation?
By Reid Colson
It may not be as crazy as it sounds. According to the National Association of Realtors, one out of every three residential homes purchased in 2005 & 2006 was a second home. Many of these are mountain cabins or beach cottages and buyers have a nice advantage right now. That said, buying a vacation home is not something to do on a whim.
You should plan on doing some research before you go on vacation. Perhaps the single most important point to determine up front is why you are buying a vacation home. Are you trying to generate income by renting the property? Would you like to have a place to take your family every year that will likely appreciate in value? Would you prefer some flexibility in location and like to vacation at a different spot each year?
Once you’ve determined why you’re looking for a second home, you can use that information to focus your research. Let’s say you live in Washington, D.C., and have decided to purchase a mountain home within driving distance for family use. The web is a great tool for this research. You can look at the area real estate with a simple search on Yahoo!, or other search engines. In doing a bit of research you may find that Wintergreen suits you perfectly as it meets needs for four seasons of sporting activity. The resort’s 45 holes of golf, 20+ ski and snowboard slopes, camps for children, bike trails, spa and numerous amenities are exactly what you’re seeking. So now what?
Determine your budget. There are a number of ways to do this, one of the easiest starting places is to look into mortgage pre-qualification. Look at those payments and see if they fit within your budget. Don’t forget about additional expenses like utilities, home owner’s fees, insurance and taxes. Determine if the homes you like in the area are within your budget.
Target Your Search. Decide whether you want to build a new home or want to buy one that is ready for you begin using today. Take a look at the inventory of homes in the area and don’t forget to check out local builder web sites – they’re often a great source of unadvertised properties. The web is a great tool for this research. You can look at the area real estate with a simple search on Yahoo! Going to the example above, you may search Yahoo on “Wintergreen custom home builder”. You’ll find a variety of builders, realtor and other home related sites. Check them all out.
Plan your Trip. Your research likely uncovered a few leads – call to set up appointments with builders or set up a half day with a real estate agent. Either way, you should be getting a good look at a variety of homes to get a good feel for what is available in terms of features, quality and prices. You should also plan on spending some time checking out the amenities. Do they include everything you need – is shopping convenient, can you get tee times or lift tickets easily, etc.
Double check your math. After all your research and stops during your visit, you accumulated a lot of information and probably modified your preferences along the way. Look at the budget again and be sure you’re making the right call. Look at the tax implications of how you’re planning on using the property. If you’re considering rentals, make sure to consider property management fees, buying furniture, and maintenance. After doing the math again, if the home makes sense, move quickly. Because these homes are often in areas that are appreciating quickly, recreational uses and investors are often competing for the same limited set of properties. One nice upside to this competition once you get a home is that the prices are appreciating at a very quick pace.
Good luck and happy vacationing!
The author is a Principal in Bridlewood, a custom home builder serving the Central Virginia market. Bridlewood builds custom homes and vacation getaways for discriminating buyers. They are committed to providing the highest levels of professional service and consistent communication throughout the design and building process.
Check out our most recent listings in Wintergreen. We're offering great mountain living in a distinctive getaway home within the Wintergreen resort. This 4br, 3.5 bath, 2,200 sq ft home has 700 sq ft of decking, a stone fireplace, two master suites and a view lot.
Visit http://www.bridlewoodproperties.com/listings/default.aspx for more information.
Great new mountain home for sale - http://www.wintergreenrealestate.com/searchdetails.php?WGRID=10089
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