Make no mistake about it, there are several vacation home-buying mistakes you can make. When you purchase any real estate, it should serve as a blessing and not a curse. The trouble is, with a vacation property, people can easily overlook certain issues to justify their acquisition. Basically, there’s a strong emotional component and it greatly trumps the reality. It’s best to take an objective look before proceeding because once you sign on the dotted line, it’s yours for better or for worse.
Should You Buy a Vacation Home?
Now, should you even buy a vacation house in the first place? The best way to answer this is to think about it from a monetary standpoint that also includes other factors. In other words, it not only must present a financially sensible purchase and fit-in with it’s intended uses.
“Most people are misled by a beautifully-decorated home and don’t look past the surface. When it comes to purchasing a vacation home, people tend to be less discerning about the property and less likely to look at the practical considerations that are the focus of buying a primary residence. I’m convinced that people looking for a second home are in a less critical state. They don’t have a practical head on their shoulders.” —Fox News
Obviously, you must have the budget to not only afford the carry costs but also the financial wherewithal to withstand period expenses. (Some of which will surely be sizable.) Additionally, it’s necessary that it fits your needs. For example, having ample number of bedrooms and baths, as well as the livable square footage. Plus, it must also be in the right location to make it a sensible purchase.
Biggest Vacation Home-Buying Mistakes to Avoid
If you are considering buying a vacation property, you’re probably going to use it periodically. It might also serve as your retirement location in the future. Because of this, since it’s not your primary property, you should avoid the following vacation home-buying mistakes:
- Choosing the wrong location. Okay, let’s begin with the golden rule of real estate — location is the single biggest factor. This is due to the fact that you’re buying into a neighborhood and not just a house. Remember, the neighborhood ultimately determines a house’s value. If the neighborhood is solid and desirable, it’s generally a good purchase.
- Paying too much for move-in readiness. Practically everyone wants a move-in ready house. After all, it’s less work and ready to use from the first day going forward. But, it comes with a cost. And, that cost might not really be justifiable. Don’t pony up too much dough for a property with all the bells and whistles because any property can easily be made over to fit your tastes.
- Hiring the wrong property management service. Chances are excellent, if this is a vacation property, you won’t be there most of the time. So, you’ll need help in keeping it in good condition. And, if you plan to rent it out, you’ll need a local service to manage it. Take your time and do your homework before you commit to a property management company.
- Buying a home that’s overly customized or niche. Another big vacation home-buying mistake is to purchase a property that’s heavily customized or a niche property. If you do, understand that you’ll have a tough time selling it later on. And, you might find yourself in a position of settling for less of a sales price. It’s just bad for future ROI.
If you are considering buying or selling a home in Orlando, contact us for the latest market information. We’ll also provide you with the right advice about the local real estate market so you make the best decisions.