Each month, FrontDoor.com lists the top 10 things homebuyers and sellers need to know about a different topic. So stay tuned for tips on everything from foreclosures to taxes.
FrontDoor's Top 10 Things to Know About Buying a Second Home
One-third of all the homes sold in 2007 were vacation homes and investment properties, showing that demand for second homes remains healthy despite a slow housing market. And with homebuyers enjoying an advantage in many markets, now may be the time to buy that second home. Whether you're dreaming of paradise or profit, master these 10 tips for a smart investment.
- Resist the urge to impulse buy.Don't come back from your vacation with the keys to a new house without having thoroughly researched your purchase first. If you buy on a whim, you may end up with a second home you can't afford or that doesn't fit your needs.
Read More >> - Evaluate your needs and long-term goals. Be realistic about what type of second home suits your lifestyle. If you're looking for a weekend getaway, staying within a day's drive of your primary home could be a good move. If you'd like your second home to someday serve as a retirement spot, assess the home's accessibility and check out health care available in the area.
Read More >> - Get to know the area before buying.Even if you've been visiting the same vacation spot for years, it's important to get to know the area from a non-tourist perspective before you buy. Visit the place off-season and talk to locals to get their take on the area.
Read More >> - Hire a local real estate agent.Buying a vacation home outside your area can be tricky, as residential real estate is extremely localized. A local agent can help you get to know the market.
Read More >> - Choose the type of home that's right for you.Think about how much time you're willing to devote to maintenance when deciding between a condo and a single family home. Condos are a good choice for buyers who only plan to use their homes occasionally and don't want to deal with year-round maintenance. But if you don't want to sacrifice privacy, stick with a single family home.
Read More >> - Shop around for a mortgage. The market changes constantly, so resist the temptation to take whatever terms your lender on your first home offers you. See what else is out there to get the best deal possible.
Read More >> - Calculate additional expenses.Don't forget about insurance and maintenance when adding up the costs of your second home. Some of the most desirable areas are at a higher risk for hurricanes, floods or forest fires, so insurance for these areas can be pricey. Get several insurance quotes before making an offer. For maintenance, a good rule of thumb is to set aside 2 percent of the home's value per year for upkeep and repairs.
Read More >> - Consider fractional ownership to cut down on costs.You can end up shelling out a lot of money for the amount of time you actually spend in a second home. Pool your resources with friends or relatives and enjoy a vacation getaway for a fraction of the cost. Sounds like a timeshare right? Not quite. Fractional ownership offers longer time intervals and involves different pricing, financing and fees.
Read More >> - Look into tax benefits.You don't have to pay taxes on rental income if you rent out your home for less than 15 days a year, but you can't deduct any rental expenses. If you rent out your home for more than 15 days a year, you have to report the income, but you can deduct expenses like maintenance and cleaning.
Read More >> - Rent your home out for extra income.If you need extra cash to supplement your monthly mortgage payment, renting out your second home could be a good option. Being a landlord comes with more responsibilities than many people realize, so familiarize yourself with landlord/tenant laws and the Fair Housing Act before renting out your home.
Read More >>
Archive
You can never get enough Top 10 tips. Check out our past lists for more great advice.
- 10 Ways to Beat the Sluggish Housing Market - Don't let the slow market get you down. Whether you're a home seller looking for offers, or a homebuyer facing stricter loan requirements, rev up your real estate potential with these helpful pointers.
- 10 Things to Know About Foreclosure - "Foreclosure" is the big buzz word into today's market. What exactly is foreclosure and how does it affect you? FrontDoor breaks down what you need to know, whether you're a homeowner in mortgage default or a buyer looking for a bargain.
- 10 Tax Tips for Homeowners - Some of the best perks of owning a home are the tax breaks. Know what expenses you can deduct and how new laws affect you. If you're currently renting, consider the tax advantages of homeownership.
- 10 Red Flags for Homebuyers - Sellers don't always tell the whole truth to potential homebuyers, especially if they're eager to sell (or "motivated" in real estate lingo). But you can't afford to get a professional inspection of every house you tour. So before you spring for the pro, narrow down your choices by doing your own pre-inspection to spot potential problems.
- 10 Ways to Cut Moving Costs - If you're moving into a new home, your pockets probably feel pretty empty right now. You've just paid a down payment, closing costs and broker fees, so the last thing you want is an expensive move. Lucky for you, we've got tips to help you pack up and ship out on a budget.
- 10 Tools for Homebuyers - Buying a house is more than just picking out your dream home -- it's a serious financial commitment that requires many calculations before you even start house hunting. For those of us who are mathematically challenged, figuring out what we can afford and what type of mortgage is best can be daunting. FrontDoor's handy tools help you develop a homebuying strategy and simplify those tough calculations so you can spend more time finding your perfect home.
- 10 Unique Selling Tactics - Say goodbye to the days when baking a batch of cookies and putting out fresh flowers before an open house would be enough to sell your home. In today's market, it takes more than that to attract buyers, and frustrated home sellers are resorting to some unusual methods to get their homes noticed. From clever to downright bizarre, here are our 10 favorite unusual home selling tactics.
- 10 Things to Know About Buying a Second Home - One-third of all the homes sold in 2007 were vacation homes and investment properties, showing that demand for second homes remains healthy despite a slow housing market. And with homebuyers enjoying an advantage in many markets, now may be the time to buy that second home. Whether you're dreaming of paradise or profit, master these 10 tips for a smart investment.