You’ve probably seen the data: Second home sales have exploded.
Interest in second homes was steadily increasing before COVID, but the pandemic has pushed demand to a year-over-year high of 178% in April 2021. Although the market has slowed, the probable cause is not a lack of desire for a second home, but skyrocketing prices, forcing buyers to put their second home plans on hold. Redfin economist Taylor Marr predicts that interest in second homes is here to stay: âDemand for second homes remains well above pre-pandemic levels, and we can expect that. the high level of interest in vacation homes persists in the new era of remote working. “
Luxury second homes are driving the market
In the luxury sector, a new report from Berkshire Hathaway HomeServices (BHHS) notes that “high demand for second homes is a major driver of the US luxury market.” But the luxury market faces the same realities of high prices and low inventory, especially in sought-after vacation destinations. Kyle Kemp, a Santa Barbara-based BHHS broker, noted that stocks were 50% below normal in his area, but deals doubled as properties were snatched up for a premium.
Other interesting findings: Today’s second home buyers are ditching condominiums, which means competition and single-family vacation home prices in hot markets are on the rise. Buyers also want to spend more time in their second homes and are not interested in renting them out.
Second Home Buyers Can Be Your New Best Customers
What does this mean to you?
First, many of your clients are already thinking about a second home. Pacaso’s Second Home Sentiment Report found that 56% of people want to own a second home – over half of your contacts are potential buyers! You don’t have to wait more than 5-7 years for a former client to re-engage. They might be ready to buy a second home today, if the price is right.
Second, working with second home buyers expands your customer base. Capture out-of-town shoppers interested in your market, or local customers who want your expertise as they research holiday markets.
Third, if you help a buyer find their dream second home, chances are they are trying to convince their friends to buy a home in the same neighborhood. Second home customers can be a great source of referrals!
The co-ownership option
Inventories are tight, prices are high and single family second homes are scarce. So how do you give your customers what they want?
One option is co-ownership with Pacaso. Most buyers, even with remote working flexibility, don’t plan to use their second home for more than a month or two a year. With condominiums, they can buy a luxury home at an affordable price and choose the amount of ownership they want. Pacaso only offers single family homes, and they are never rented out.
Palm Springs agent Brandi Pratt, who has worked on many Pacaso transactions, put it this way, “and that’s totally desirable because they can say,” I have a second home that’s worth $ 5. million dollars, but I bought it for part of that. “
And when your customers buy with Pacaso, there’s no bidding war – the price listed is what they pay. Buying agents receive a 3% commission and equity bonus on each trade, which can add up as each house offers an opportunity for eight sales. Bringing buyers to Pacaso is as easy as a referral, and you can earn your commission on a Pacaso property anywhere in the country, from Napa to Malibu, from Aspen to Miami.
Working with second home buyers and introducing the condo to them helps you grow your business, earn generous commissions, and expand your reach.
Pacaso is the modern way to buy and own a second home. We bring together buyers to collectively buy and own a second home, and provide a fully managed end-to-end service. We’re making second home ownership possible and enjoyable for more people.