But buyers in the consideration stage expect to pay in cash
Most homebuyers in the market for a vacation rental property plan to take a loan to purchase a worth up to $400,000, according to a survey from vacation rental site Vacasa.
Almost half of survey respondents in their 20s and 30s (46%) said they were willing to dish out $200,000 to $399,000 on homes to be used primarily for vacation purposes, according to a survey from Vacasa. Meanwhile, the majority (64%) said they would spend under $399,000 and were more interested in investment purposes.
“Many buyers are choosing vacation rentals over other investments because of the potential for higher returns and flexibility to use the home,” the report said. “The opportunity for agents lies in that the majority of prospective buyers have not yet chosen an agent or broker as their partner in selecting the best vacation rental for them.”
Nearly three-quarters of the survey’s 721 respondents expected to get financing such as conventional loans (39%), investment loans (27%), HELOCs (12%), and cash-out refinances (4%). The rest said they would pay in cash.
“Buyers in the consideration stage are often unaware of all their available financing options,” Vacasa wrote. “Sharing informative content and referring them to a knowledgeable lender to learn more will help build trust for a deal down the road.”
For 85% of prospective buyers who have already chosen where they want to buy, the top five most popular states for purchasing a vacation rental were Florida, California, Texas, New York, and Colorado.
“Even if you don’t work in the top-ranked states, each market has its own popular vacation destination,” Vacasa wrote. “Focus your marketing efforts on major cities nearby. Second homeowners love to be able to drive to their vacation homes for personal use.”
