Location key in buying a vacation house

Trips to the mountains or the ocean often lead to dreams of buying a vacation home, but buying a second home requires just as much consideration and caution as buying a first home. The rewards of a second home come with responsibilities.

So, before being swept away by breathtaking views from an oceanfront condominium or a mountain villa, vacation home buyers need to consider maintenance, tax liabilities and benefits and, most of all, the three important factors governing every real estate purchase: location, location, location.

Choosing a home within a reasonable commuting distance for weekend trips can be crucial for residents in the traffic-snarled Washington region. Some vacation home buyers have found that the blissful hours spent at their second home cannot make up for the stressful hours spent getting there.

“Most people find that a commuting time of about two hours is their limit,” says Nancy Fairall, a Realtor with Coldwell Banker Premier Homes in Berkeley Springs, W.Va. “The commute is one big reason that people who have bought a vacation home will choose to sell it. They find the commuting too much, and they thought they would use the place more than they do.”

Mrs. Fairall says families sometimes find they use a vacation home less than they expected because, as the children grow older, the weekends are often filled with sports and other activities. Sometimes a family will opt to hang onto the vacation home even when they don’t use it often, choosing to view it as investment or renting it for income to offset the cost of ownership.

Although most home buyers consider the potential long-term value of their home purchase, vacation home purchasers also need to evaluate the factors that can ensure that the property holds its value or increases in value over time.

“When you are looking for a home near the beach and you want to make sure the property increases in value, it’s best to focus on oceanfront, ocean view or bayfront properties since they are limited in supply,” says Realtor Ed Galyon with Coldwell Banker Residential Brokerage in Ocean City, Md.

“The opportunity for further development in those locations is very limited both because of natural reasons, since the land is physically limited, but also because of government restrictions on development,” he says. “It can be hard to even get a boat slip in those areas, much less a home.”

As with any residential property, location is paramount in determining the value of a home. However, the lifestyle choices of vacationers vary, so value does not depend solely on location.

“Some people who come to West Virginia come here because they want absolute peace and to live in a natural environment,” Mrs. Fairall says. “Others come here and want the beauty of the mountains, but they also want access to cultural things, good restaurants and golf courses. Those buyers usually opt to be closer to Berkeley Springs rather than more isolated in the mountains.”

Mrs. Fairall recommends renting a home for a vacation before buying one so that the buyers can get to know the area before they look for something more permanent.

In some real estate markets consumers feel they should purchase the largest home they can afford, believing that larger homes are more valuable. But vacation home markets are a little different.

“At the Woods Resort [in Hedgesville, W.Va.], there are a variety of styles including little cottages, town homes, villas and big single-family homes, in contemporary or Colonial styles,” Mrs. Fairall says.

“Probably the most popular style in the mountain areas is a log cabin, but even little two- or three-bedroom cottages, sometimes with just one bath, are pretty popular,” she says. “Buying a more expensive home may not be the best idea because, if you choose to sell, it could take longer since fewer people can afford it.”

Mr. Galyon says vacation home buyers should focus on what fits their needs.

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