If you have dreamed of owning an Asheville rental cabin of your own, you may be interested in the information presented recently in the Wall Street Journal. The article indicates that second home sales in some markets increased at dramatic levels last year. According to the article, the soaring sales levels can be attributed to deeply discounted prices on those homes, cash purchases by buyers not dependent on second home mortgages, and increasing stock portfolios of buyers.
If you have considered buying a second home, this may be the time to really start your search. Before entering the buyers' market, however, there are some simple steps which can alleviate future issues during the buying process. First of all, do your homework. What purpose would the home serve? Will you be renting it out when you aren't there? Will you retire there in a few years? How much room do you need? Will you need a management company to keep the home in good condition and keep it rented regularly?
Another important step is to assess your own financial situation. Will you need a second home mortgage which requires more stringent financials? How much can you afford to spend? It makes no sense searching through $1 million homes if you have a budget of $350,000. Do you have a stellar credit rating? If not, clean it up prior to applying for that second mortgage.
In the article, financial experts indicated that mortgage lenders were requiring as much as 25% down on second homes and clean credit reports. Further, they indicated that the best prices on homes were found by buyers able to pay full cash for the home price. The markets studied were Barnstable County, Cape Cod, MA, Mercer Island, WA, Hilton Head, SC, and Palm Beach, FL, and the increase of the number of homes sold ranged from 9% to 181%.
National numbers for 2010 second home sales will not be available until March 2011, but if these specific markets are any indication, it may be time to consider looking around for that second home. For more information, contact Greybeard Realty.