Do you and your family have a favorite vacation destination? Someplace you visit frequently? Someplace that feels like a second home?

When you own a vacation property, you don’t have to worry about hotel bookings or availability; your vacation home is always ready for you. Owning a vacation property also offers the opportunity to own real estate in another part of the world, which often comes with its own financial benefits.

Here in Park City, resort real estate and vacation properties are a significant portion of our market. Many people flock to the area for our year-round recreation, including amazing skiing, world-class mountain biking, and fantastic spas and restaurants.

Although we might be a little biased, it’s easy to see why Park City is frequently the answer when someone asks, “Where to buy a vacation home?”

In this post, we’re breaking down everything you need to know about buying a vacation home.

What to Know Before Buying a Vacation Home

The first thing you should consider when buying a vacation home is how exactly you want to use the property. Consider the lifestyle you’re seeking. Do you crave fresh powder and a winter-long ski adventure? Perhaps a ski-in, ski-out property is the best choice for you. Do you dream of perfecting your swing on the greens each summer? A golf community would help you do just that.

But beyond the lifestyle you’re looking for, you should also consider how you plan to use the property on a more realistic level. Do you plan to use the property as a vacation home that gets rented out when you’re not using it? Is this a home you will spend half the year living in?

In Park City (and many other towns and municipalities), certain neighborhoods are not zoned to accept nightly rentals. Additionally, some communities with homeowner’s associations (HOAs) might have their own rules about nightly rentals.

If you’re hoping to offset some of the costs of your vacation property with rentals, you’ll need to be aware of these types of specific regulations.

Curious about Park City’s best neighborhoods? Read these posts next:

• Best Park City Neighborhoods for Investors
• Within a 10-Minute Drive: Park City’s Best-Kept Secret Neighborhoods
• What are the Best Gated Communities in Park City?

Is Buying a Vacation Home a Good Investment?

It’s one of the most common questions we get asked as real estate agents in Park City. Although lifestyle is the primary reason for and benefit of buying a vacation property, no one wants to feel like they have made a “bad” investment.

Although we can’t speak to your unique situation, as we are not financial advisors, as Realtors, we can confidently say that yes, buying a vacation home (particularly in Park City) is a good investment.

The return on investment you get on a vacation home is slightly different than an investment-only property. Many people buying vacation homes in Park City are looking for a balance. They want a second home they can rent out when they are not using it.

For this type of property, it’s best to look at the property’s appreciation over time. Nightly rentals will rarely carry the costs of owning the home, perhaps with the exception of luxury resort condo units.

In Park City, we’ve seen quite good appreciation in real estate over the past several years.

Interested in investing Park City real estate? Here are a few more posts for investors you might enjoy:

• Stocks Vs. Luxury Real Estate: What’s the Better Investment?
• What to Know About Hiring a Property Manager in Park City
• Is Park City Good for Investors?

How Long Does it Take to Buy a Vacation Home?

There is no hard and fast rule about how long a real estate transaction will take. The answer depends entirely on the person selling the home and the buyer. Was the home completely ready to go? Does the property need some work first?

Every home sold (vacation property or otherwise) needs to go through a due diligence period, where the property is thoroughly checked over. Some common elements of the due diligence period include home inspections, environmental assessments, title review, risk assessments, etc. In some cases, this requires a lot of homework and can take longer.

Wondering how to buy a vacation home from out of state? Read our blog: Can You Buy a Home Out of State in Utah.

How to Afford a Vacation Home

Whether you are paying cash, applying for a vacation home loan, or borrowing against your portfolio, there are numerous ways to finance a vacation property.

Here are just a few things you should consider:

• Vacation home mortgage rates are typically a little higher than rates you would see in a primary residence.
• Depending on your situation, and if you are using the property as a rental, there could be tax advantages (talk to your CPA!)
• Since you’re not living in a vacation home full-time, it’s a great opportunity for shared buyers. You can split the cost and the use of the property.

Learn more about the financial side of owning a vacation home in Park City with these posts next:

• What are the Tax Implications of Owning a Vacation Home?
• What’s the Best Way to Finance a Vacation Home in Park City?
• The Art of Negotiation in Luxury Vacation Real Estate

One More thing to Consider when Buying a Vacation Home

When buying a vacation home (or any home, for that matter), choosing the right real estate agent to represent you is key. Chances are, when you buy a vacation home, it’s going to be in an area and a market that you aren’t intimately familiar with.

Working with a local real estate team means you have access to professionals who know the ins and outs of the area. They have boots on the ground and can expertly advise you on the nuances of the market.

A local agent will also have their finger on the pulse of the area. They already know all the best amenities and locals-only spots you’ll want to know about when you own a vacation home here.

Additionally, if you’re buying from out of state, you may not have the opportunity to tour homes in person. A local agent would be able to be your eyes and ears. They could help pre-qualify homes for you, or even take you on FaceTime tours at showings.

Here at CFH, we’ve spent the better part of the last three decades helping people realize their dream of owning a vacation property in Park City. Whether it’s your first vacation home purchase or you’re experienced with recreational real estate, get in touch today and see how our team can help.

Fill out the form on this page, call us at 435-647-8035, or email us at info@CFHparkcity.com to speak with someone.