How to prevent vacation-home buyer’s remorse
You feel ready You have been saving for years, working for years, and it time to reward yourself with a vacation home. You love the lifestyle of the snow birds or the ski bunnies. You want to begin looking for that second home that will allow you to escape and revitalize for a season and return back to your primary home. Whether you desire a get-away in a ski town or a beach town, there are several things to consider. MSN reports that boomers often feel buyer’s remorse with a second home purchase, so let’s consider how to avoid that.
Tour the home in person. With everything so accessible online, more buyers are willing to put in an offer sight unseen. Photos and virtual tours are a great way to preview a property. Viewing a property in person will give you the full experience of the location and home. Accessibility, views, smells, neighborhood nuisances, the feel of the home are all things that don’t show online, and could disappoint you greatly if you don’t visit the property prior to making an offer.
Give the area a test drive. If you want to buy a second home for your own enjoyment, why not take a home in the area on a test run first? With short-term rentals, it’s easy to preview what it might be like to have a second home somewhere without a commitment to buy right away. At the very least, stay at an AirBNB or hotel for a few days. Get local, visit shops, walk the sidewalks, talk to the people who live in neighborhoods you are considering.
Do the math. A second can be costly, so make sure you run the numbers. You should consider the cost of financing the purchase, property taxes, HOA fees & review of the budget, insurance, maintenance and utilities. For vacation homes, weigh the pros, cons and costs of buying versus renting. If it’s an investment property, look at comparable leases in the area, calculate the cap rate and do your research to see what the rental demand is like in that market. You’ll also need to consider the cost of property management.
Timing is Everything. It’s easy to get caught up in the excitement of a competitive market. If you are a Baby Boomer or Gen X, you have some competition to buy in desirable areas. For buyers looking at a second home for vacationing, it can be especially emotional when you start thinking about, gathering with loved ones and visitors from afar. For investors, a hot market might feel like the competition will hinder your chance to get that hot investment. In either case, it’s important to exercise patience, wait for the right time, and never buy a second home feeling pressured to jump at anything or because you’re afraid of missing out.
What are you Really Looking for? Before you buy a second home, make sure you know what you want to get out of it. Is the goal to take a break from everyday routines with work and to be in a more vacation like setting? Or are you interested in generating an income? Maybe you want to focus on building stronger bonds with family and friends, or just unwinding. However you decide to use your second home, you should know what you want to get out of it to make sure you feel fulfilled and satisfied with your purchase.
Execute your Plan. Once you have defined the purpose of your second home and how often you will stay there, do be mindful that it is still a year-round commitment. If it is an investment property, consider long or short term leasing. Consider who will manage the property, so it can generate a nice income for you. If it is a place that is just for you, be mindful or year round maintenance and who you could outsource that to, if it is a distance from your primary abode. Have patience and prepare, so that you can feel secure and satisfied with your purchase and enjoy your second home and all that it can do for you!
Work with a Pro If you are considering a second home purchase, I work in the State of New Hampshire and can assist you in purchasing a lake, mountain or beach home. If you are looking a distance, I have connections nationwide with top agents who are area specialists, many holding the coveted CRS® Certification (Top 2% in the country). Call me to discuss at 603-440-8486, Lisa Waller-Gage, Owner/Broker of Sky Realty
Search for a New Hampshire Vacation Home Here, or contact Lisa today for a detailed list of exactly what you are looking for.
