The largest numbers of second homes are in states with large populations. The greatest percentage of second homes, however, are in smaller and less populous states.
The most popular locations for second homes are near bodies of water and mountains and second home buyers prefer rural settings to those more urban, but in most cases, second homes are within less than a day's drive from the primary residence.
Second homes are everywhere.
Among the 359,000 second homes sold last year, second homes were found in every state and in every region, according to the National Association of Realtors' "2002 Profile of Home Buyers and Sellers".
Determining the best location for your second home isn't easy.
So we asked second-home guru Clark Thompson to show us the way.
CEO, of Orinda, CA-based EscapeHomes, Thompson is also a residential real estate broker with Village Associates, also of Orinda.
Thompson's EscapeHomes features listings of all types of second homes -- vacation and resort properties, retirement homes in active adult and continuing care communities, timeshares and fractionals (jointly-owned timeshares) for sale and for rent in 275 cities nationwide and 20 countries.
In response to the growing demand for seconds -- vacation homes, resorts and the like -- the second home portal recently published a list of 10 tips to help shoppers find their second dream home and we asked Thompson to elaborate.
Ten Tips For Finding A Perfect Second Home
Define your lifestyle interests. "It's well known that people who buy second homes are primarily looking at areas that have to do with their recreational interests. So ask yourself 'What is it that I like to do?' Some of it is subconscious. It might not be something they are aware of so they have to define what is the appropriate type of place where they'd like to be."
Determine the ideal travel distance. Ideal traveling time is a matter of personal preference and tolerance, but Thompson says it's best to limit yourself to a few hours traveling time. If it's too far or too expensive to reach within a few hours, you likely won't use an owner-occupied second home enough to justify its cost. Don't sell yourself short by insisting if you buy it you'll use it. Before you buy, rent in the area for a season. See how often you actually manage to get to your vacation home.
Research locations. You may like downhill skiing, but can you really afford a home in a ski town and what happens around town when the slopes close? "Okay, you've defined your lifestyle but what about affordability, climate, population and all those other issues? Check with the local chamber of commerce, use the Internet, use EscapeHomes to find out more about a community. If you live in Michigan, you can't do a drive-by to find out if California or Florida property is more expensive."
Select the desired location. "Within the destination you have to pick the community. Let's say it's Las Vegas. Do you want a new planned development or do you want to be in closer to The Strip? Do you want a patio home or town home for less maintenance? If it's in Florida, do you want it inland or a beach community? If you are into beach communities, do you also want a golf community near the beach?"
Make inquiries with locals. "Go knock on neighbors doors to find out what it's like. How many second home owners are there? Are they true home owners or renters? Too many renters and they might not be keeping the place up. You need community details often available only from the residents."
Contact a real estate professional. A real estate professional is your eyes and ears in distance places. "You can do a lot of things without a real estate agent, but there is a point when that picture you saw and that virtual tour isn't enough. I'm a Realtor and when I was looking to buy in Palm Springs and I needed a Realtor I could trust who I knew would help me. A Realtor can highlight areas of interest. One of the things I've learned is that a resort real estate agent is very different from a regular real estate agent in a resort area. You have to rely upon someone who knows the area," rather than someone who merely sells homes.
Visit destinations. "Most people will visit a destination two or three times before they purchase. You start finding out about the resources, what the travel time is really like if you drive or fly. It might be only an hour flight, say from here (Orinda) to Palm Springs, but if you don't get the ticket ahead of time you may have to fly to Burbank instead of Palm Springs. The other thing is most people buy a second home have in the back of their minds that the property will be their primary residence at some time. Are you really sure this is where you will want to live?"
Review financing options. "Some places deal with high-end purchases that are almost always without loans and are 1031 exchanges. Can you use your equity line to buy a second home? Financing for a second home is different and you pay more, about 1/2 point to 1 point more. There are also different insurance criteria. The good news is you still get that mortgage write off (up to certain limits, depending upon how the property is used and its value)." Involve your tax professional in the financing part of the deal.
Purchase through a resort specialist. "People selling in a resort area know more about a particular area and typically take it very serious that business comes from the outside. Outsiders' questions are are quite different from those inside the area. It's only a half hour, say, from Park City to Salt Lake City, but make sure you are not working with someone who lives in Salt Lake City who wants to sell a home in Park City."
Enjoy the process. "This isn't your primary residence and everything doesn't have to be perfect. Have a little fun with it. You probably don't have to be near the best school or within walking distance of the beach," Thompson said.
Published: July 5, 2002
Use of this article without permission is a violation of federal copyright laws.
 Broderick Perkins parlayed a career in old-school journalism into a
contemporary digital news service that really hits home.
The award-winning consumer journalist, originally from Wilmington, DE, is founder, publisher and executive editor of the bootstrap DeadlineNews Group, a Silicon Valley-based editorial content and consulting service specializing in residential real estate, consumer news and related editorial consulting services.
The DeadlineNews Group includes the website, DeadlineNews.com, offering real estate editorial content and consulting services, and its back shop, the Deadline Newsroom, an open house on news that really hits home.
Perkins obtained his formal journalism education from University of Delaware and a journalism boot camp, the Institute of Journalism Education at the University of California-Berkeley. He went on to 20 years of service as a daily newspaper journalist at the Wilmington, DE News Journal and San Jose, CA Mercury News.
Perkins covered housing on the San Jose Mercury News reporting team which earned a General News Reporting Pulitzer Prize in 1989 for coverage of the Loma Prieta earthquake.
He has also produced real estate, consumer and small business content for the Wall Street Journal, Los Angeles Times, RealtyTimes.com, Nolo.com, Better Homes and Gardens, the National Association of Realtors, Homestore/Move and Intuit/Quicken among more than three dozen publications.
In addition to managing the DeadlineNews Group, Perkins most recently served as chief editorial consultant for Nolo's Essential Guide To Buying Your First Home, Nolo, and writes real estate television scripts for RealtyTimes.com. |
