A vacation home can be a lot of things. It can be a retreat for when you need to get away, it can be a spot to bring family and friends, or it can be a way to bring in extra income. Yes, there are lots of benefits to owning a vacation home, however, vacation homes come with their own problems including financing, management, and more. I am speaking from experience as I have not only helped many clients find their perfect second (or third) home, but Hunky Hubby and I just purchased a vacation home with some friends in Beech Mountain. (It’s for rent on Airbandb, so be sure to check it out!)
Today, I am going to be giving you some tips on how to determine a reasonable offer price for a vacation property and how to decide the price if you are going to rent it out.
Let’s Make a Deal
Just like purchasing a main residence, the offer you put on a house depends on the market you are in, the property’s list price, and how long it has been for sale. If you are going to be using the house as a rental property, you will also need to factor in how much you will be able to price the rental at—but we will dive into that a bit later. It is important to find a realtor that knows a lot about the area. They should be able to tell you if it is a buyer’s or seller’s market and how much homes in the area have been selling for. Usually, you do not want to go 25% below the listed price. Depending on how much time you are going to be spending at the home, you can decide what is important to you. Do you want a home with all the latest updates or somewhere with great views. Are you willing to buy a fixer-upper or do you want to be able to buy it and start vacationing or renting right away?
While I only actively broker here in the Triangle, I am experienced at both the coast and mountains, personally, and would love to connect you to the REALTORS® I trust when purchasing and selling outside of my home market. These are my reliable real estate experts who I have full faith and confidence in. They are sure to take as good care of you as I would! Give me a call today at 919-961-3277 or email me at Annie@HudsonResidential.com for my most trusted real estate references.
How to Price Your Vacation Rental
Purchasing a vacation home can be a great source of rental income but deciding the right rate for your rental can be tricky. If you go too high, your rental can sit empty. If you price it too low, you could be missing out on a lot of money and may not be making enough for it to make sense for you to rent. Air Concierge has a great list of tips to help you figure out your optimal rate.
- Add up your property costs. Figure out how much your property will cost you per month and then use that amount to determine how much you need to charge for the rental and how many days a month you need to rent it out.
- Research the competition. Check out rental rates for places around the home.
- Keep in mind that traveler demand isn’t constant. You can figure out when your peak season is by checking out how the hotel rates fluctuate during differents seasons and around holidays.
- Don’t hit renters with extra fees. Try to include as much as possible in your rate instead of having a listing with extra fees.
See their full list of tips at info.airconcierge.net.
I Am With You
If you are considering buying a second home or rental property, I am currently living it! I would love to tell you about my experience so far and offer some advice. Feel free to give me a call at any time to chat at 919-961-3277 or email me at Annie@HudsonResidential.com.