Question on vacation home buying

[Minnie824]

Actually, a few questions. First of all...what would you propose as an offer on a house? For example, if a house cost $200,000, what would your first offer be? 10% lower at 180,000? 5% lower at 190,000? Also, if anyone has a 2nd home/vacation home, did it take awhile to adjust financially? Do you ever rent it out? Do you use it alot? Any info would be great!

 

[rayelias]

Actually, a few questions. First of all...what would you propose as an offer on a house? For example, if a house cost $200,000, what would your first offer be? 10% lower at 180,000? 5% lower at 190,000? Also, if anyone has a 2nd home/vacation home, did it take awhile to adjust financially? Do you ever rent it out? Do you use it alot? Any info would be great!

Let the market decide what your price might be. It may be 5-10% OVER the asking price! It all depends on what it's worth, how much you want it, and how much someone else wants it.

There are MANY "vacation" areas that in the past several years, have had bidding wars on house prices.

I would suggest having your realtor (make sure you get a "buyers broker" who will represent YOUR financial interests) do a market analysis and start there.

With respect to adjusting financially - my advice would be to not even consider purchasing a second home unless you are CERTAIN you won't have to adjust financially. If it's going to be a hardship, think twice. What happens if you can't make the payments and you can't rent it and the market dries up? Are you willing to lose, not only your second home, but your primary residence if times get tough?

YMMV

 

[barkley]

i would'nt think the bidding process would be any different than on a standard home. i think it's advisable though to enlist a local (to the vacation) lic. building inspector to look the place over before you make an offer. since most people don't live in the area their vacation home will be they may not be aware of climate and building issues that should be taken into consideration (what kind of upkeep they will have to hire out since they won't nesc. be available to do it on a regular basis).

had a friend who LOVED hawaii-when her mil passed away she and her dh bought a condo as a vacation home with the plan of living there part of each year once they retired. initialy she tried using a rental company to generate some income when it was'nt being used by them, but she gave up on it when she realized she realy did'nt like the idea of someone she did'nt know "living" in her "second home". she did rent it out after that, but only to friends and co-workers she knew and felt comfortable with.

in hindsight she said that had it not been a condo where she felt comfortable having the place uninhabited for months on end, and she knew the association would be on top of any exterior upkeep she probably would'nt have done it-she did'nt like the idea of having unattended property she was'nt close by to address problems with.