7 minute read
Finding a (Second Place to Call Home
—Ryan Scully, Licensed Associate Real Estate Broker
A contemporary vacation home with a water view in the Hudson Valley, New York
— ASK AN AGENT —
Since the pandemic’s onset, more people than ever have been buying second homes. Douglas Elliman experts share strategies and insights. by Bernadette Starzee
LAST YEAR Alison Betts bought a second home. Then she bought a third one. “I wanted more space and privacy and to get away from the city without necessarily being off the grid,” says Betts, a Brentwood, California–based property-wealth portfolio manager and realtor for Douglas Elliman. From her new vacation home in Big Bear, California— which is about 100 miles from Los Angeles—all Betts sees are mountain peaks, Baldwin Lake, goats, and wild donkeys. Her other new home is in Lake Arrowhead, a popular tourist destination about 80 miles from the city. Both homes offer recreational activities and excellent Wi-Fi, while the Lake Arrowhead property also provides superb opportunities for rental income.
— John Greene, Realtor Associate
A home with a private dock in Palm Beach, Florida
Colorful highrises in Palm Beach, Florida
Demand for homes in vacation communities has soared since the pandemic began, as people focused more on quality of life and rethinking what mattered most to themselves and their families.
“We’re living in a new era in which the places where people live, work, and play are becoming more integrated,” says John Greene, a realtor associate for Douglas Elliman covering Wellington and Palm Beach in Florida.
“Vacation homes are being repurposed, as people can now work from anywhere,” says Allison Cameron Parry, a licensed real estate sales associate whose coverage area includes Cape Cod, Martha’s Vineyard Island, and Nantucket in Massachusetts. “Why work from your office cubicle when you can work from your water-view estate?”
The increased demand for homes in traditional vacation spots means buyers face greater competition, so you need to be ready to move when a home you love becomes available. Below, Douglas Elliman agents in some of the hottest second-home communities share tips for finding your dream vacation home.
1. HAVE A LOCAL BROKER REPRESENT YOU. Buyers seeking a second home on Massachusetts islands often live in Boston, New York, or farther away, and it’s important that they have a local broker working on their behalf, Parry says.
“For homes priced at $1.5 million or below in Martha’s Vineyard or $2 million or below in Nantucket, you have to be ready to go right away,” she says. “Having a local representative who can keep an eye out for properties coming on the market that meet your preferences will give you a competitive edge.”
Local brokers also know the market well and can advise buyers on whether a property is priced accurately.
Most Hamptons buyers rent out their second home for a month, the summer, or even off-season.
— Brian Hagadorn, Licensed Real Estate Salesperson
A traditional Hamptons-style home by Juan Montoya in the East End, New York
— Allison Cameron Parry, Licensed Real Estate Sales Associate
A beachfront getaway designed by Workshop/ APD in Cape Cod, Massachusetts
If you have an existing broker you trust, he or she can refer you to a local broker in the vacation community. The two can then work together to serve your interests, Betts says. Douglas Elliman’s expansive network of brokers provides local expertise in many of the nation’s most desirable vacation communities.
2. THINK ABOUT HOW YOU’LL USE YOUR SECOND
HOME. Consider how much time you envision spending in your vacation property and what your lifestyle goals will look like.
“Whether you plan to use the home for entertaining or for a quiet getaway spot, that can send the search in different directions,” says Ryan Scully, a licensed associate real estate broker whose territory includes New York’s Hudson Valley.
Different communities offer different lifestyles, and some will be better suited to your vision than others.
Islands like Martha’s Vineyard and Nantucket “have more of an escape mentality,” Parry says. “If you have to take a ferry or a flight, it’s a different lifestyle than a vacation spot on the mainland.”
Scully recommends spending some time in a local hotel or rental house before choosing a community, to “get a flavor for the different communities and which one suits you best.”
It’s also important to determine how convenient it will be to get to your vacation home from your primary residence, he adds.
Realtors can work with buyers to help them develop wish lists and prioritize must-haves. For example, “If
you have a passion for tuna fishing, then maybe you must have a dock,” Parry says. “If you’re a tennis enthusiast, you might insist on a community association that offers access to tennis.”
Perhaps you’re planning to bring your extended family to your new home. Parry has also noted an uptick in “multigenerational purchase concerns. Some people are looking for properties with a fully detached guesthouse or complete second home adjacent to the master home with shared spa and pool area so the children and grandchildren can have a respite together,” she says.
In addition to amenities, inquire about the quality of Wi-Fi and utilities in the area where you’re hoping to buy, Betts advises.
3. DECIDE HOW MUCH WORK YOU ARE WILLING
TO DO ON YOUR VACATION PROPERTY. “Many buyers want something turnkey,” says Brian Hagadorn, a Hamptons-based licensed real estate salesperson. “They prefer not to put in a lot of time and money to fix it up.” But with low inventory, turnkey homes are at a premium.
Scully often encourages Hudson Valley buyers to consider new construction, which all but eliminates the need for repairs and can allow for features that may be difficult to find in resale inventory.
Luxury condos appeal to some vacation-home buyers because of their limited maintenance and full-service amenities. “You can enjoy the amenities while you’re here and then lock it and leave it,” Greene says.
A winter home designed by Brandon Architects in Big Bear, California
4. CONSIDER THE PROPERTY’S POTENTIAL FOR
—Alison Betts, Property-Wealth Portfolio Manager and Realtor
Properties in Lake Arrowhead, California RENTAL INCOME. If you’re interested in renting out during times when you’ll be away from your vacation home, “think about the profile of who your renter would be,” Greene says. “In Wellington, there are renters who come for 16 weeks for the equestrian season and will pay a premium that often covers your carrying expenses for the whole year.” That means you can use the property for the other eight months at no expense.
Properties in coastal communities like Palm Beach offer similar income potential, according to Greene. “Platforms like Airbnb and Vrbo make it easy to find renters to come and cover your costs.”
In the Hamptons, about 75 percent of buyers anticipate generating income from rentals, Hagadorn estimates. “They may rent the home out for a month, the whole summer, or even off-season, since off-season demand has increased,” he says. “Homes that rent the quickest have four bedrooms or more and a pool, and they have recently been renovated and are clean and beachy.”
If you’re interested in weekly rentals, “look for something bright, airy, and easily accessible,” Parry says. And remember the old adage about location, location, location. “Remote locations usually won’t be in demand for the masses,” she notes.
