Maine Home Buying Strategy - Second Homes
Maine Home Connection
Home Home About Us About Us Contact Us Contact Us
Buyers Sellers Stats Maine Blog Home Valuation Properties
Explore Communities
Search All Properties
Weekly Open House
Local Lifestyle Videos
Your Home's Value
Waterfront Real Estate
Moving to Maine?
Featured Listings
Home Finance & Mortgage
Retirement in Maine
Real Estate Investing
Featured Properties
Enter a keyword to search the site

Features & Services
Your Home's Value My Home's Value:
Receive a Report of  Your Home's Value 
New Construction Green Homes: 
Guidelines, Builders, Green Homes
Your Homes Value Market Insights:
Current Home Sales Reports & Statistics 
Sold Properties Sold Data:
View All Recent Home Sales History
Left-Marketing Home Marketing:
MHC Imagine More Home Marketing 
...Manage Your Account
Login Existing Users:
Login with your email address only
Existing Users New Users: 
Simple signup to view   all Maine properties.
Contact Us Contact Us:  
Call or email us with your questions.
Newsletter Signup

Buying Maine Real Estate

Second Homes - Strategy and Considerations

On a national basis home sales declined 4.1 percent in 2006 from 2005. But, vacation-home sales rose 4.7 percent in 2006 to a record 1.07 million sales, according to the NAR (National Association Of Realtors®). The increased interest in buying vacation homes for personal use rather than rental is expected to continue throughout this decade.

The annual Investment and Vacation Home Buyers Survey from NAR found that vacation-home buyers intend to hold on to their property for a median of 10 years. Thirty-eight percent of respondents plan to keep their property for 11 years or more.

With a long-term horizon in mind, it's important to make sure that the home you buy lives up to your expectations. To complicate matters, residential real estate is an intensely localized business. Many vacation-home buyers buy outside of their local area.

Understanding Local Market Conditions and Practices

The NAR survey revealed that the typical vacation-home buyer in 2006 bought a property that was a median of 215 miles from his or her primary residence. Forty-two percent bought a vacation-home within 100 miles of their home; 32 percent of the properties were 500 miles or more away.

Even vacation-home buyers who purchase within 100 miles of their primary residence are likely to find that real estate custom and practice might differ considerably from what they're used to. And market conditions are so variable today that you can find different forces at play even within one community.

Buying outside of your local area requires diligent pre-purchase investigations to make sure that you end up with a home that brings you pleasure. Here are the sorts of things you should look in to:

Check out the condition of the local market. Is it a buyer's or a seller's market? If the area is flooded with inventory, find out which homes are selling and why. You usually can't go wrong if you buy the type of home that is in high demand. It may be worthwhile to wait for such a property to come along.

Are there any natural hazards to be aware of such as forest fires, flooding or hurricanes? Can you get insurance for these hazards to protect your investment?

If you're buying in a rural community and you've experienced only urban living, you may need to familiarize yourself with such things as septic systems and percolation tests.

With this in mind, you'll probably have the best success if you choose a real estate agent from the local area to represent you in your vacation-home purchase. Ask acquaintances who own in the area for recommendations. Or, have your real estate agent at home find a competent agent to work with.

Second Home Tax Status

After you decide on an agent, ask for a list of all the fees that will be levied in connection with your out-of-area purchase. For example, some communities have transfer taxes and others don't. Find out how much your property taxes will be and how much they are likely to increase over time.

Buyers who purchase a vacation home a long distance from home should investigate what local resources are available for property management. You may purchase in a planned-unit development that includes onsite management. If not, can you hire someone to look after your property when you're not there?

It's a good idea to take a few vacations in the area where you think you want to buy - and at different times of year - before you actually purchase. You may find after spending more time there that you really don't want to own a property that you may only visit infrequently.

In the end it might make more sense to continue renting if you plan to spend only a week or so a year there.



Seriously Local

Moving to Prouts Neck Soon?: This picturesque peninsula, located in Scarborough, Maine, is a haven for nature lovers, artists, and more. … Read More
58 Fieldstone Drive | Westbrook: Welcome to tranquility in Westbrook, Maine. 58 Fieldstone Drive is a quiet and private neighborhood surrounded by natural beauty.… Read More
Unity featured on PBS "Ask This Old House"
by Larry Loyola

Nowadays unity house is a common thing to live. There is nothing to hide to live like this. I like y... read more

August Home Sales Strong
by Agent Schoen

Very very impressive to read and understand.

Cyber Security - How Safe Are You?
by Philip K

Cyber security has been an very important issues for all businesses, big and small.

 Related Articles

  Footer-BirdHome Buying
  Footer-BirdLife and Culture
  Footer-BirdMaine Waterfront
  Footer-BirdFun Things to Do

Create a Custom Search

Our home search is extremely easy to use and features the most up-to-date technology.  Select your price range, location, waterfront type and home style.

Welcome to Maine Home Connection

Receive email updates of all matching properties. You will have access to all properties for sale in Maine.



Buying Your Home Heart and Mind Buyer Agency
Exclusive Services Agency Relationships Title Insurance
Home Buying Process Advice and Strategy
Affect of the Economy Determining A Price First Time Buyers Viewing Homes Second Homes Home Search Strategy Waterfront Real Estate
Common Forms
Selling Your Home Your Home's Value Home Marketing
Digital Photography High Definition Video Property Storyboard Virtual Staging Internet Marketing
Pricing Factors Advice and Strategy
Counteroffers Establishing a Price Listing Agreements Feng Shui Principles Considering Repairs Value of Improvement Choosing A Realtor Common Mistakes
Home Selling Process
Maine Maine History Maine Geography Maine Economy Maine Demographics Maine Education Maine Climate Maine Beaches
Maine Real Estate Blog
Home Valuation
Search for Properties Virtual Home Buying Hyper Local Search
Maine Communities Portland South Portland Scarborough Falmouth Cape Elizabeth Cumberland Yarmouth Old Orchard Beach Freeport Harpswell
Search For Homes Maine Map Search Detailed Property Search Search By Address Search By MLS Number
Open House
Local Lifestyle Videos
Home Valuation
Waterfront Real Estate Coastal Maine
Maine Coastal Properties
Maine Lakes
Maine Lake Properties
Casco Bay Islands Maine Rivers Waterfront - FAQ's
Relocation Services Relocation Package Maine Counties Quality of Life Education and Schools Art and Culture Property Tax Rates Common Relocation FAQs Moving Long Distance
Mortgage Center Calculator Mortgage Types Credit Scoring Fee & Closing Costs Mortgage FAQs
Retirement in Maine Retirement Planning Retirement Communities Changing Demographics
Real Estate Investing Vacation Homes 1031 Tax Exchanges Condos and Townhomes Remodeling: Cost vs Value