Five Tips for Buying a Vacation Home in Washington State

Every real estate transaction requires careful thought and consideration, but perhaps none more so than purchasing a home that will not be your primary place of residence. Owning a vacation home is a dream for many, and can be a great investment opportunity - if you make it such! While in no way a comprehensive guide, today I’m sharing five things to keep in mind as you start your journey towards owning a home away from home. If you’re ready to take a deeper dive into the possibility of owning a vacation property, speaking with a real estate professional is your next best step!

1. Location Matters

Choosing a location that suits your preferences is an obvious consideration, but choosing a location that also appeals to others is an important factor in the future appreciation and potential rental value of the home. Look for an area that offers a good mix of attractions, amenities, and high potential for appreciation. Spend time in the location to get a feel for the community, assess nearby amenities, and ensure it aligns with your vacation goals.

2. Build Your Budget Wisely

As with the ownership of any home, be sure to factor in not just the property cost, but ongoing expenses like maintenance, property taxes, and utilities when formulating your budget. Explore financing options and interest rates, and be mindful of any additional costs associated with obtaining a mortgage specifically for a vacation property. Check insurance costs and coverage, as factors in a different area like weather, potential natural disasters, and the property’s overall vulnerability may affect the insurance costs.

3. Consider Rental Potential & Logistics

Even if you do not initially plan to rent the property out, consider the property’s potential as an income producing short or long term rental. If you’re not planning to be there consistently, consider how you’ll manage the property. Hiring a local property management service might be beneficial.

4. Research Local Regulations & Future Developments

Understand local zoning laws, rental regulations, and any restrictions that may impact your use, remodeling intentions, or ability to rent out the property. Investigate potential future developments in the area that could affect property values or your overall experience.

5. Resale Potential

Lastly, even if it’s a vacation property, think about its resale potential. Opt for a property that has a high likelihood of appreciation in value over time.