Here is my question to the ActiveRain community?  Do you think that we will see people stop buying second homes or vacation homes in the near future and just renting luxury homes for a month or two at time?

It is sad how our minds work. You start off working hard and having success.  Typically, you need to get away from work and you head to the beach or the desert for some sun and relaxation.  Two days into the trip you say to your husband or wife, "This is great, I could live here full time".  This is where it all starts.  Then you start to think, we should buy a "little place" here for a 2nd home.  The little place quickly turns into a real home and before you know it, you have a 2nd home. 

I have been thinking about this a lot over the past several months.  My primary market is Paradise Valley and North Scottsdale, AZ which have a lot of 2nd, 3rd, and 4th homes.  I am 33 and have lots of friends whose parents and even some of my friends who have 2nd homes.  All I here is that they do not have enough time to spend at the 2nd home and that they are always having something to maintain on that house. They have typically bought or will by two of everything now, so that when they leave their primary home they will have the same thing at their other home.  I have seen a trend of people who have bought a 2nd home typically sell it after about two to three years, because they are simply not able to use the property the way they thought. 

Disclaimer 1- I am talking about people that own 2 properties (Primary Home and a 2nd home or a vacation home for personal use), I am not talking about an income producing second homes. I also am not talking about the people who go from one of their 4 homes via their private jet.  These people it is all about convenience, I get that, and kudos.   

My thought is that people, especially my age, will not be buying 2nd homes in the future.  I think after seeing what my parents and myfriends parents go through maintaining their "vacation homes" I think that my generation will not be willing to put in the effort.  I do not blame them.  A vacation is supposed to be a vacation.  Like you want a honey do list on your first, last, or any-day in the middle of your vacation.  I see people just renting a furnish home for a week or month at a time or going to a nicer hotel.  If you start to add up the number of days that you used the 2nd home and the expenses of the 2nd home, you will end up spending more on taxes, maintenance, and utilities, than you would have if you would have just rented something or stayed at a nice hotel.  Now I know you sales people out there are going to say that I am forgetting the appreciation of the property in my equation.  I understand that the home will appreciate, but the people buying a second home typically have more that one investment and their 2nd home is not their primary investment strategy. 

I just think the stress and the feeling of "we have to go to the 2nd home" out weighs the appreciation aspect.  I tell half my clients that they should not buy a second home, that they should either rent a luxury rental or stay at a great hotel when they want to come to the Valley.  And then next year, when their son or daughter in Boston, has a baby and they do not make it to the Valley except for two or three weekends, they are truly vacations instead of "trips to check on the house".  And if they want to go to San Diego next summer or the Oregon Coast, they do not feel like they are waisting money because they are not going to their home in Arizona.

Disclaimer 2 - I like to sell homes.  It is my primary income.  Please do not think that I try to talk people out of buying property.  I will sell anyone a property, but l want to make sure that are buying a second home really are prepared mentally for what they are doing.

 What do you think ActiveRain?

This blog is an extension of James Lownestern's Blog Too Young....Too Old?

I started out in real estate at the age of 25 in North Scottsdale, AZ.  I was the youngest agent in the market by at least ten years.  I struggled for the first year because I was doing everything wrong.  I had my picture on everything and did not have good objection handlers in place to handle the questions about my experience level.  8 Years late I still try not to put my picture on things, but sometime it is required.  Here is what I would suggest if I was telling someone 25 how to succeed in Real Estate being young.

1. FIRST AND MOST IMPORTANT: Join the right company.  Join a bigger company in your area.  One that believes in training and support.  If you interview with a company and they do not have a training program, you probably do not want to be with that company. You want to be around people that will help you grow.  The worst thing is to have no one to turn to for help.
2. DO NOT PUT YOUR PICTURE ON YOUR CARDS, SIGNS, OR ANYTHING, or anything if you don't have to.  Do not let "OLDER" agents tell you, you have to have your picture on your card.  Develop a logo instead and use that in place of your photo.  Start to brand yourself immediately.  If you use your photo and you look young, chances are that you will not even get the opportunity to demonstrate your knowledge or sales ability, because Sellers will not give you the appointment. Now if you are someone like David Odem and you are a man child, feel free to use your photo
3. LEARN OBJECTION HANDLERS:  These are the two that you will get the most.  Whether you use these or create your own, learn them by heart.
1. How long have you been in the business?

Agent Old: I have 25 years of experience and I am the number one producer in the world (Every older agent seems to be the highest selling agent in the world, just ask them). 

Agent Young: Since I have been in the business I have learned one thing.  Not one client cares about how many other clients' homes I have sold.  They only care about "WHAT AM I GOING TO DO TO SELL THEIR HOUSE?" This is what I am going to do to sell your house.

1. You are very young?

Agent Old: These agents will never get this question, because they just had a hip or a knee replaced.

Agent Young:  This is the best question that you can get and you have to address this question in a listing appointment.  Here is how you answer it.  Make it a joke:  Do you really think so? Then laugh and agree with them, but ask them some questions.  I am younger than most of my competition, but let me ask you some questions? Do you have more energy now or when you were my age?   Answer:  your age.  Do you have more or less responsibilities and duties than when you were my age?  Answer:  More.  Do you have more money now or when you were my age? Answer: now.  Exactly, and thank you for proving my point.  (They will be a little confused at this point)  I am going to work extremely hard to sell you house because I have extra energy, because I have less responsibilities and duties than most of my competition (i.e. no children, wife, big house, huge bills) and I also want to have more money in the future. Simply put, I work hard and put in the hours because I can.  I have more time than my competition.  This in combination with my work ethic is what has made me successful in my career so far.

1. BE RESPECTFUL AND HUMBLE.  Being young is great, but young confidence can be mistaken as cockiness very easily. (Trust me, I know what I am taking about)  Remember that the majority of people that you are going to be dealing with are much older than you.  Whether it will be other agents, clients, loan officers, or title people, they all are expecting you to act professionally. Respect them and ACT THEIR AGE NOT YOURS.  You can goof off and let loose when you are with your friends on the weekend, not when you are around people you are trying to do business with.
2. FOCUS AND PROMOTE WHAT YOU HAVE TO OFFER:   Being young is a great advantage. You are hungry and willing to work hard.  An advantage over an older agent is that you are going to be here for the client's family for years to come, where the other agent may retire in 5 years. There are a lot of things that you have to offer, just take advantage of them.

In summary, learn from everyone and keep in mind that almost every situation has a positive spin.  Look for it and use it.

If you are considering a move to Scottsdale, or buying Scottsdale Real Estate, you owe it to yourself to visit Grayhawk as part of your home tour.  If you are considering buying a home or real estate in Grawhawk you owe it to yourself to talk with Brian Myers at Signature Properties to determine whether I am the best real estate Broker in Grawhawk to help you with the purchase of your home.

http://www.luxuryinthedesert.com/

http://www.myersbringsbuyers.com/

Brian Myers, GRI, ABR  Signature Properties in Scottsdale, AZ  602.740.0686  brianmyers@cox.net

 Here is my question.  What timing has the best results?  Do I bring this house to the market when it is at frame stage like the picture below or do I wait until it is a couple weeks from completion?  I have several investors that are building spec homes in Cave Creek, Carefree, North Scottsdale, and Paradise Valley and they are have different opinions on this.  The homes range from 4500 Sqft to over 10,000 Sqft.  Price range is basically 2 to 6 million.  Some think it is better to get as much exposure to the home as possible and give the potential buyers the option to pick their finishes.  My other clients want to be able to dictate the finishes and have the potential buyers and real estate community see it only when it is finished.  I am looking for opinions or personal experience with this issue. Please feel free to look at the home below and let me know what you think.  I am extremely interested in hearing your responses.

The house below is being built in the Canyon Ridge Estates neighborhood of Cave Creek.  This particular house is 5326 Sqft with 5 bedrooms and a 4 car garage.  The MLS # 2782597 . You can also find more information on this house on my web site at www.LuxuryintheDesert.com.

Brian Myers, GRI, ABR  Signature Properties in Scottsdale, AZ  602.740.0686  brianmyers@cox.net

This is the most affordable Golf Course lot in Estancia.  Whether you want to buy it and hold it for an investment or build a wonderful new home, you cannot go wrong with Estanica.  Estancia Golf Community is one of the most prestigous communities in North Scottsdale.  It is the only member owned and operated, Tom Fazio designed, Private Golf Club in Arizona.  The lot is situated between the 14th & 15th holes of the Estancia Golf Course boasting Pinnacle Peak, Troon Mountain, McDowell s & City Light views. The terrain makes building very easy, NO EXPENSIVE PAD OR LOT PREP NEEDED. It has a perfect size building envelope of 13,481 square feet and it is conveniently located near the South gate of the development.  Call Brian today for more information: 602.740.0686.

The MLS #2794500