Field Guide to Vacation, Resort, and Second Homes
(Updated March 2009)
It is no question that the state of the economy has drastically impacted the second home/vacation market over the past two years. A booming market in 2007 reported 27.7% of all homes purchased were for investment while another 12.2% were for vacation homes. In 2009, the tables have turned. Today's economic conditions are showing an increase in the lease/rentals of these types of properties. There is a deluge of wonderful homes on the market, however financing options are getting tighter, and in some instances, a cash sale is the way to go. Here you will find information on the activity in the vacation/second home market and well as tips on working with the vacation/second home buyer. You'll also uncover a variety of resources available from the National Association in addition to updates on the RSPS certification. (K. Bartlett Walsh, Quality Assurance Coordinator)
Buyer Motivation and Expectations:
Vacation Properties vs. Investment Properties
To use for vacations or as a family retreat
Vacation Properties - 84%
Investment Properties - 21%
To rent to others
Vacation Properties - 25%
Investment Properties - 51%
To diversify investments/good investment opportunity
Vacation Properties - 26%
Investment Properties - 39%
To use as a principal residence in the future
Vacation Properties - 30%
Investment Properties - 10%
For a family member, friend or relative
Vacation Properties - 14%
Investment Properties - 16%
For the tax benefits
Vacation Properties - 16%
Investment Properties - 11%
Because the buyer had extra money to spend
Vacation Properties - 6%
Investment Properties - 4%
Source: 2008 NATIONAL ASSOCIATION OF REALTORS® Investment and Vacation Home Buyers Survey
Vacation/Second Home Market Activity 
"For lease" signs appear when homes don't sell, (St. Louis Business Journal, Jan. 30, 2009).
Economy turning second homes into rental properties, (International Herald Tribune, Jan. 23, 2009).
Economy posed to motivate second homes owners to rent their vacation homes more frequently according to PhocusWright, (Reuters, Jan. 15, 2009).
Your second home - renting out- bright spot in a bad economy, (New York Times, Aug. 14, 2008).
Real estate: tips for the intrepid, (Business Week, Aug. 18, 2008). Q
Good deals lure foreign home buyers, (REALTOR® Magazine, Aug. 7, 2008).
Talking points - second homes, (NATIONAL ASSOCIATION OF REALTORS®, May 8, 2008).
Working with Vacation/Second Home Buyers
Second homes: the world can be your (fractional) oyster, (USA Today, Feb. 27, 2009).
Bargain hunters descend - cash in hand, (The Wall Street Journal, Feb. 25, 200). Q
Tight economy creates opportunity: vacationers can find bargains at others' 2nd homes, (Chicago Tribune, Feb. 15, 2009).
Good time to buy a vacation home, (Realty Times, Jan. 22, 2009).
2008 NAR investment and vacation home buyers survey, (NATIONAL ASSOCIATION OF REALTORS® , 2009).
Welcome buyer, (Florida REALTOR® Magazine, October 2008).
Absolute auctions help high-end sellers unload homes, (South Florida Business Journal, Sept. 11, 2008).
Throw a farm area block party, (Florida REALTOR® Magazine, May 2008).
Second home buyers go condo, (REALTOR® Magazine, May 2008).
Fiscally fit: renting out a second home while keeping your sanity rentals, repairs and the ick factor, Terri's tips for owning a vacation home, (Wall Street Journal, Feb. 7, 2008). Q
Your beach house is waiting - bring cash, (Money, Dec. 2007). Q
RSPS (Resort & Second-Home Property Specialist)
Resort area and second home speciality, (NATIONAL ASSOCIATION OF REALTORS®, 2009).
Resort and second home property specialists FAQs, (NATIONAL ASSOCIATION OF REALTORS®, 2009).
RSPS on the road, (NATIONAL ASSOCIATION OF REALTORS®, 2009).
NAR education matrix - resort and second home markets, (NATIONAL ASSOCIATION OF REALTORS®, 2009).
New elective options for the RSPS certification, (NATIONAL ASSOCIATION OF REALTORS®, 2009).
eBooks & Other Resources
Books, Videos, Research Reports & More
The resources below are available for loan through Information Central. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Central at 800.874.6500 for assistance.
Investing in a vacation home for pleasure and profit, (Mason, OH: Thomson South-Western, 2006). HD 1341 B69
How a second home can be your best investment, (New York, NY: McGraw-Hill, 2004). HD 1341 K28
REBAC roundtable 2004, volume II, resort, vacation and second home markets, (Chicago, IL: Real Estate Buyer's Agent Council, Inc., 2004). CD016
Making money from a second home: a practical guide to buying and managing a property for long lets, holiday lets or university accommodation, (United Kingdom: HowTo Books, Ltd., 2004). HD 1341 P26
Field Guides & More
These Field Guides and other resources in the Virtual Library may also be of interest:
Field Guide to Short-Term Rental Restrictions
Field Guide to Listing and Selling Luxury Properties
Power Tools for Resort Property Specialists
Power Tools on the Housing Market
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