The Right Time to Buy a Vacation Home
With mortgage rates dropping and multiple reports of the Real Estate marketing “booming”, we wanted to REALLY know… Is now the perfect time to buy a vacation home in sunny SWFL? We were able to interview local realtor Rachael Guertin from RE/MAX Realty Group to get all the details on the current vacation home market.
- How is the current market for people looking to buy a vacation home?
Currently there is a decrease of inventory in our market so it is important that buyer’s who are looking to purchase a vacation home have communicated with their real estate agent exactly what they are looking for and are prepared to make an offer when they find a home they love, especially those in search of a pool home. Because of the current market, the real estate agent they are working with should be able to arrange a viewing on short notice. If buyer’s are unable to physically be at the showing, there are great virtual options to utilize such as Facetime, Zoom, Google Hangouts, etc.
- What is the price range?
The price range of vacation homes of varies. It comes down to location and lifestyle when buyers are looking for a vacation home, along with what is on their must have list. Do they want to be close to the beaches or on the beach, do they like to fish or boat, do they need Gulf access, do they want their own pool and if so what type of sun exposure is important to them, do they like to play golf, tennis, pickleball or bocce, are they looking for more resort style amenities or do they not care for amenities.
These variables all determine the price range of properties. On average, if buyers are interested in a 2/2 condo with a community clubhouse and pool while being within 20 minutes to the beaches, the price range may be between $125,000-$200,000. If buyers are interested in a 2-3 bedrooms condo or townhome with a garage, community clubhouse and pool while being within 20 minutes to the beaches, the price range typically varies between $175,000-$250,000. Single family homes with a pool and Gulf access in Cape Coral typically varies between $300,000-$400,000 for a 2-3 bedroom home. These are not exact numbers but averages. As you can see there are so many different variables that determine the price of the vacation home buyer’s are looking for.
3. What are the best areas to own a vacation home in?
The best areas to own a vacation home again really come down to the buyer and what they are looking for. If a buyer is looking to use their vacation home for certain times of the year and lease it out for the other times, then it is important to consider areas that lease well for the months they are looking to lease.
4. Have you seen a rise of vacation rentals through the pandemic?
No, I have not seen a rise of vacation rentals made available but I have received an increase of demand to find a vacation rental. I receive phone calls at least a few times a month from people looking to lease any time from now through season of 2021. Some of them share that their beaches of pools never opened this summer and they are looking for a place to have that here in sunny SWFL.
- Why is now a good time to buy?
Now is a good time to buy because the interest rates are phenomenal and the price of homes have been stable with an average price increase year over year. Yes, it is currently a seller’s market but that is due to demand, not due to inflated pricing.
On another note, up until about 6-8 months ago, buyer’s who are looking for a second home have become much more serious. Previously, buyer’s would inform me in advance they are coming into town and I would arrange 7-12 properties for them to view with most of them still being available to look at while they were in town. They may be 6-18 months away from buying and I would continue to stay in touch. If the right opportunity presented itself, they would fly down to look at the home. COVID-19 has changed they way we do things now. Most buyer’s are not flying down to stay in a hotel to look at vacation properties. They are trusting the agent they are working with and incorporating virtual showings and are making offers sight unseen, well atleast in person. They may travel to see the property during their due diligence period or they may not. Overall, vacation home buyer’s seem much more serious than they ever have.
Information provide by: Rachael Guertin from Re/Max Realty Group
Images courtesy of: PhotoSell Florida/Chris Shimp