Buyers in the market for a vacation getaway have many ownership options including purchasing a property outright or buying part of a time-share.
There are lots of ways to find the right fit. Dale Mattison, associate broker at Long & Foster Realtors in Bethesda, said buyers should first weigh what is most important to them, whether it be family and friends, adventure and travel or simplicity and relaxation.
Mary Charters, associate broker at Mary Charters and Associates in Gaithersburg, using your vacations to test the waters.
“I have past clients who took five years of going on several vacations a year to different areas on the East Coast that were on the water, and then chose the place they felt was best suited to them,” Charters said.
Data from the Institute for Luxury Home Marketing show 50 percent of buyers who purchase second homes and vacation homes buy at least 500 miles away from their primary residence. The other 50 percent purchase within a two-hour radius from home.
The most popular areas for vacation homes are resorts, typically in warm climates, on the water or in the mountains, she added. But some prefer colder areas, such as Colorado, for skiing.
“These areas are popular because they offer lots of fun activities, great restaurants, lots of shopping and sightseeing opportunities,” she said.
After location, the next decision is whether it is better to buy outright or opt for a time-share?
Eli Lehrer, vice president of the Heartland Institute in Washington, has doubts about time-shares as good investments.
“Largely because so much money is spent to sell them, time-shares will always resell for far less than they cost when purchased from the developer,” he said. “Particularly in a poor economy, it may be impossible to sell a time-share at any price. If one likes time-shares, the best bet is to rent them from their owners on the secondary market.”
The upside of a time-share, said Charters, is that buyers know when and where they are going every year — though there are ways to visit new locations.
“Many time-shares allow you to ‘swap’ locations with other areas, so some people like to do that,” she said. Keep in mind that these arrangements may have be made up to a year in advance to guarantee a date — and some dates may be unavailable.
Mattison said owning a vacation home outright generally provides a greater long-term financial reward because of appreciation, and most buyers tend to go that route.
Despite a decline in sales volume in 2010 as reported by the National Association of Realtors, the market share of vacation and investment home sales has remained steady. The American Resort Development Association found the average sales price of time shares also remained firm.
Whatever the kind of property, a Realtor in the area where they’re looking to buy to find the best deals and most reliable information.
Mattison recommended seeking a Realtor who has earned the Resort and Second-Home Property Specialist or RSPS certification because they have experience and training to help buyers with a second-home search.
