If you’re a real estate professional and want to expand your skills to work with vacation home buyers and sellers, now is a great time to explore options in your market. Read on to find out how you can grow your business with vacation home and second home transactions.
What is a vacation home?
The US Census Bureau defines vacation homes as “seasonal, recreational, and occasional-use properties.” Pay close attention to your customers’ needs and wants – finding the right fit for their second home is key. Ultimately, your location and the needs of your clients will dictate the type of properties you work with.
Current market conditions
Sales of vacation homes and second homes reached 6.7% of the total market share in 2021 for the year. At the end of January 2022, vacation home sales were still on an upward trend, suggesting continued growth in the segment. Although this is only a small part of the overall real estate market, there is great interest in owning a vacation home.
Who buys vacation homes?
Buyers and sellers of vacation homes are generally better prepared, having gone through the process of buying their primary residence.
Because this is their second home, many vacation home buyers are in no rush to close a deal. Getting a head start on the process with properties that meet their search criteria will help you attract and maintain a steady stream of second home and second home clientele.
What motivates holiday home buyers?
Below are lifestyle and leisure activities that may entice someone to buy a vacation home and some of the concerns they might have when starting their search:
- Golf courses and resorts: Well-designed golf courses can attract players from across the country who want to play the course. It helps to know the amount of dues and what area services a serious golfer might need in town.
- Waterside : If you’re considering buying and selling waterfront property, you’ll need knowledge of waterfront rights, the area’s floodplains, and how to find more specific details about the body of water connected to the property.
- Hunting and fishing : Homebuyers who hunt and fish and enjoy the outdoors will want to know the area’s hunting and fishing seasons, the regulations for those seasons, the permits required to participate, and the types of equipment that can be used.
Being new to a niche market can be daunting, but with a little preparation you can start off on the right foot. Below are some tips for establishing yourself as a vacation real estate professional.
- Smart Grid:If you are someone who loves the lake life, consider joining the local yacht club. Working alongside community members is a great way to expand your sphere of influence and position yourself as the go-to agent for all things vacation.
- Financial Literacy:Homeowners who buy a vacation home can get tax relief for mortgage interest and property taxes if the home is used as a second home. Vacation home sellers can take advantage of a 1031 exchange to help mitigate any capital gains taxes they may be responsible for. Understanding how these financial strategies work will be useful to you.
Interest in the vacation home and second home market is growing, and you can be part of that growth. Stay focused on your customers’ vision and your business will be rewarded with referrals.
You want to deepen your knowledge and stay up to date with market trends, consult the Rocket ProSM Insight Learning Center.