Besides the traditional second home ownership, a client may want to consider other choices that may setter suit their lifestyle needs and/or vacation dreams. With second home sales representing up to 40 percent of the home sales market, savvy agents need to become aware of the diverse market and ownership options that exist, including timeshares, fractional ownership, residence clubs, condo-hotels and destination clubs. Consider these important questions provided by ARDA (a professional association devoted to the vacation market) as you help your clients with their decision:
- How much time will you be using the vacation home?
- Is the destination choice difficult to purchase in or seem over-valued due to location popularity?
- Are you looking at a second home as an investment and/or family legacy, or primarily as an annual ‘go to’ vacation spot?
- How much time and money are you willing to invest in home maintenance or decor?
- Is it important to be in the same vacation home every time you visit the area, or do you prefer variety?
- What level of luxury are you seeking, and are you realistically able to achieve it in a second home?
- Is it important for the vacation home to be deeded?
- What is your annual vacation budget?
Although the above questions may be more directed to “vacation properties” than traditional second homes, the value of a second home as part of a retirement portfolio ought to be seriously considered by most people. Not only can a second home provide greater net worth, it also can produce a steady stream of income in retirement years.
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