I've never (yet) been in a position to own a second home - I do live in CA after all, and have had 10 homes here that I've lived in - but I'm curious about other areas of the country that are considered large 2nd home markets.
What buying criteria do your 2nd home buyers use? Is there a relationship between what they paid for their primary home and what they are willing to pay for the 2nd one? What is an average 2nd home price? Would you consider these buyers rich? or just comfortable? What is your biggest selling point when you discuss buying in your market? Do you find that they want to know about recreational areas, museums? Do they have, or want to have a (smaller than their original) job?
I'm also curious about buyers who have more than one home in which they live at different times of the year. What are some of the factors that you think make up their buying decisions when they are deciding on home 2, 3 o4 4?
Other than wineries, financial institutions, a hospital, one hardware store and REAL ESTATE AGENTS! (lots of these!), Sonoma doesn't have what I'd call an employment base. We do have a lot of people who mostly spend their weekends here, but work in San Francisco or other larger towns during the week. It can be difficult for first time buyers to find homes they can afford and now that issue is made more difficult by the lack of financing.
I showed homes this week to a highly qualified young couple (first time buyers), both fully employed, who found the house they wanted after looking for a whole year. That house was about to go into foreclosure, so it was a bargain - and a short-sale. It was offered "as-is". Pre-approved and ready to make an offer, I suggested that they call their lending institution again and confirm that their loan was still available. It wasn't. They are going to receive an inheritance in a couple of months and their financial resource suggested that they wait until that was in hand and use it to increase the down payment. This is after they had been told they were pre-approved.
Juding my my television, this is happening all over. It is disappointing and has at least 2 bad effects: they can't buy the house they love and the house they love will now slip into foreclosure. Love to hear any creative ideas you have about anything we can do to help stir up this market other than staying positive. I know you're a creative bunch! I look forward to your feedback.
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