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What to know before purchasing a vacation home

On Behalf of | Nov 22, 2019 | Real Estate Transactions |

Colorado is one of the best places to vacation in the United States, especially if you are an outdoor enthusiast. Between the beautiful trails that wind through Colorado Springs and the slick slopes of the mountains near Aspen, there are so many wonderful activities for tourists.

Oftentimes, tourists decide to make Colorado their second home through a vacation property.  However, you need to consider a few aspects before closing on any property – particularly for vacation homes.

How often you’ll use the property

Most people intend to buy a second home in hopes that they will use it consistently, whether that’s every weekend or once a month. However, some homeowners feel guilty after buying a vacation home and not using it enough.

You must take time to set realistic expectations for how often you want to return to Colorado and if you can justify purchasing another home in that state. If you are still unsure, try a trial run where you rent an Airbnb or a condo for a month or two to see if buying a home is worth the investment.

What is your budget – and is it a priority?

For most buyers, the budget is the most crucial factor in purchasing a specific property. They want a home that fits their needs while also staying financially stable. Luckily, you can review your finances and determine your budget before you start searching for vacation properties. Other costs associated with vacation homes include:

  • Associated taxes
  • Insurance
  • Utilities
  • Homeowner Association fees

If you find the budget is a priority, make sure to look within your budget before falling in love with an expensive home.

Is this worth the investment?

Most people do not think about the potential that comes with buying real estate. You may purchase a vacation home and decide to retire in it. Or you may decide to resale the home when its value is high in the real estate market.

Either option means you are investing money into your future by purchasing the vacation property. If you don’t view it as an investment, you may want to wait before making any major decisions.

Otherwise, if you are committed to purchasing a vacation home, make sure you have the right legal representation during the closing process. O’Brien Legal helps buyers perform due diligence before closing on their new home.