Confident Home Buying: Is This the House for Me?

Buying a house is likely the single largest investment you'll make and, like a good marriage, if it's the right one, it may last a lifetime. But how can you be confident in your home buying, especially if you're a first-time buyer? With so many homes to choose from, how do you know if this house is the one?

Sounds like a dating question. And, coincidentally, using some of the same techniques used to determine if you're marrying the right person may also help you decide which home is the best for your needs. These days more buyers are coupling up–-buying homes together (even if they're not in a relationship) to offset the cost and be able to afford more.

You've heard of buyers' remorse and you know you sure don't want it. Sometimes fearing buyers' remorse can actually lead to buyers' inactivity. They become afraid and so they do nothing. They shop, they see, they even put offers in but in the end, they don't close. If you're a serious buyer, you don't want to get stuck in a cycle of looking and never owning.

So, how can you be confident that the home you're buying will meet your needs? Start with some basic guidelines. Make a list of your must-haves, needs, and wants. These are truly three different categories. Yes, some things you list may overlap but after your list is started, you'll begin to see what really matters to you. Sometimes buyers will be shopping for a home with a pool, but when they finally make a list they realize that money is very tight and the added cost of heating a pool will be too much of a drain. So they revise their home-buying desires and start house-hunting all over again. It would've been far more effective to have considered this from the start.

Next, study the home or apartment that you're currently living in. What are the positive aspects of it? Are there things about the place you live in now that you absolutely can't stand? Taking stock of what is working and what isn't in your current home provides a good blueprint for the things you should consider when searching for your next home. Remember to be honest. Sometimes we tend to forget the bad things about a home due to its sentimental value. If you look at your current home with a critical eye, you'll know which areas caused a big headache and then you can be sure you don't buy another with the same problem.

For instance, maybe the home needs a lot of fixing up and you and your spouse barely survived the remodel without tearing each other apart. You might then want to search for homes in much better condition to limit the fixing up. Our minds have a wonderful way of forgetting the bad, once the bad is over. But, trust me, you'll remember once you're back in the same scenario again.

Do your homework and get everyone's feedback. Unless you're buying a home alone, you should spend time meeting with those who will be living in the home to discuss what's important. Sounds obvious...yes, but guess what? A lot of times Buyer One and Buyer Two don't even talk about what's really important to each other until they start searching for homes. Then they realize how truly different their views and expectations are and see the necessity to compromise a little. Time is better spent reviewing and discussing first. That way, an agent can make sure the properties being shown are in line with everyone's desires.

Finally, plan ahead. Especially if you're moving a family or you're moving in with someone else. Use a synchronized calendar, like Google, to help map out all the meetings and showings. There will be lots of important meetings to attend and if you can't get the necessary buyers there, the process will be stalled. Without the necessary buyers present, you can't be confident the home will satisfy. Plan. Schedule. Commit. This will assure that the home-buying process will be a success.

August 17, 2012 -- Realty Times Feature Article by Phoebe Chongchua

Home Improvements That Sell

In a mash-up survey of 450 real estate agents and 1,660 homeowners, homeowners get it - most of the time - when it comes to home improvements that help induce sales and higher prices.

Realtor.com's home improvement survey, conducted online from June 6 to June 13, 2012, tapped agents and Realtor.com users who are homeowners planning to improve their home before putting it on the market.

Given today's home buyers are aware of soft market conditions that can put a drag on values, they want a home that's ready to appreciate and that's a home in the best shape possible. Nearly 90 percent of real estate agents believe home improvements can help a home sell faster, and nearly 73 percent say home work can boost the price, provided the home improvements are the right home improvements.

Nearly three in four (71.4 percent) real estate agents say sellers too often underestimate the power of simple home improvements - repairs, painting and cosmetic upgrades. Not so, say more than one in four (75.21 percent) of homeowners polled. They most certainly plan to repair broken household items before listing their home for sale.

Also, 65.9 percent of real estate agents said another common mistake among homeowners is not making "the right" home improvements for the local market. Like upgrades from home to home help pull up values overall.

Agents, 62 percent of them, also said too many homeowners make specialty improvements based on their own tastes rather than what might appeal to a buyer.

 Recommended home improvements 

 The most common home improvements recommended by real estate agents included:

• The vast majority, 96.5 percent, of real estate professionals surveyed recommend sellers repair household items that are broken before putting a home on the market.
• More than half, 63.8 percent, of real estate agents recommend sellers make kitchen improvements.
• Most, 59.3 percent, of real estate professionals recommend sellers make bathroom improvements. What sellers improve Are sellers complying with real estate agents' recommended home improvements? Again, for the most part, yes.

The most common improvements made by home sellers:

• A majority, 75.21 percent, of sellers planning renovations will repair broken household items before selling their home.
• Most, 53.43 percent, of owners plan to add new flooring before selling their home.
• Also most, 53.37 percent, of sellers plan bathroom improvements before selling their home. Homeowners appear to have dropped the ball on kitchen work, but they aren't pinching pennies when it comes to home improvements that sell. Home improvement budgets were $2,001 to $5,000 for 24.1 percent of home sellers planning improvements; $5,001 to $10,000 for 22.23 percent and $10,001 to $20,000 for 16.63 percent.

August 16, 2012 -- Realty Times Feature Article by Broderick Perkins

Living Modern in Montana ~ 112 Cobble Creek Road, Bozeman MT

Stephen Dynia's contemporary design ~ 112 Cobble Creek Road, Bozeman, MT

 
The highest standards of architect Stephen Dynia’s contemporary design approach have been applied to this sleek, clean-lined home. Situated on nearly 17 acres, just minutes from historic downtown Bozeman, this masterpiece embodies the very best of innovation, embracing a truly unique landscape.  The home's architecture creates fluidity and a sense of harmony between nature and structure.  Every aspect of the materials and design is integrated to provide sustainability in a dramatic setting.

Nestled in the fields south of Bozeman, Montana off Sourdough Road.

Situated on nearly 17+/- acres, just minutes from historic downtown Bozeman

For more information: http://www.finehomesmt.com/cobblecreek

During the day, the home is passive solar, with sunlight heating, shaping and articulating the living spaces. The expansive south-facing glass wall affords unobstructed views of the Gallatin and Spanish Peaks Mountains.  At night, the expansive wall of glass ties the southern starlit sky into the living area. Glass doorways open onto a 1,400 square foot Tiger Wood deck and adjacent 400 square foot patio dining area, providing for seamless indoor/outdoor living.

Unobstructed views of the Gallatin and Spanish Peaks Mountains

General Resident Features:

•     Designed by Stephen Dynia Architects, winner of several AIA awards
•     Extensive use of passive solar (heating is not needed on most winter days)
•     Rough sawn beams and walnut flooring throughout the main living area
•     Two limestone fireplaces situated at either end of the living space
•     Crestron Adagio Distributed Audio System featuring six independent zones and six audio sources
•     Home Theater System featuring full Dolby 7.1 Surround Sound, B&K Home Theater System,   Sony HD
•     1080p Cinema Projector, 85" Wide - Automatic Drop-Down Projection Screen and a wet bar/morning kitchen with a U-Line Beverage Cooler

Home Theater System featuring full Dolby 7.1 Surround Sound

•     Four 1080p Flat Screen HDTVs with hidden components in Master Bedroom, Kitchen, Guest Room and Studio Apartment
•     383 Bottle Wine Room
•     Large irrigated garden and adjacent chicken coop (non-permanent structure on concrete patio which can easily be removed and transformed into a garden patio dining area)

Gourmet Kitchen:

•     Two Freestanding Islands one with counter seating and one with bar-height seating
•     Teak Cabinetry and Cambria Countertops throughout
•     Two Dishwashers - Miele and Fisher Paykel
•     Commercial-Grade 5-Burner DCS Range/Oven
•     Three Blanco SteelArt Designer Sinks
•     Reverse Osmosis Water Filtering System
•     Two InSinkErator Garbage Disposals

Gourmet Kitchen with two freestanding islands and three Blanco SteelArt Designer Sinks

Designer Finishes:

•     Louis Poulsen Artichoke Chandelier
•     Dining Room Features a Louis Poulsen Artichoke Chandelier. Designed by Poul Henningson in 1958, the PH Artichoke is considered a classical masterpiece. The original PH Artichokes were created for the Langelinie Pavilion Restaurant, where they still hang today.

View of the dining room looking south east towards Triple Tree and the Hyalite Mountains.

Louis Poulsen Artichoke Chandelier

•     Dornbracht Kitchen and Bathroom Fixtures throughout the residence. All fittings and accessories that bear the name Dornbracht are of the highest quality, possess pioneering design and place a clear and unmistakable emphasis on function.
•     Duravit Toilets in Powder Rooms and Master Bath, designed by Philippe Starck.
•     Powder Room Sinks feature cutting-edge contemporary design, manufactured in France by Julien.
•     All Baths include Zuma Collection Contemporary Soaker Tubs
•     Oceanside Handcrafted Glass Tile installed in Master Bath. Villi Glass Mosaic Tile installed in other baths creating a unique brilliance using the interplay of light and color.

Oceanside Handcrafted Glass Tile installed in Master Bath

•     Robern Cabinets in Master Bath provide minimalist design blends with modern, innovative technology.
•     Architectural Door Hardware by Omnia
•     Oceanside Handcrafted Glass Tile
•     Master Bathroom

For more information: http://www.finehomesmt.com/cobblecreek

For more information or to schedule a showing, please contact:

Carol Lister

Broker, CRS, GRI, ABR

Prudential Montana Real Estate

2001 Stadium Drive, Ste. A

Bozeman, MT

59715

carol.lister@prumt.com

406-581-9376

http://www.carollister.com

Carol Lister, Broker, CRS, GRI, ABR - Prudential Montana Real Estate

Lake Davis, Sales Associate - Prudential Montana Real Estate

or

Lake Davis

Sales Associate

Prudential Montana Real Estate

1925 N 22nd Avenue, Suite 201

Bozeman, MT

59178

lake.davis@prumt.com

406-539-1519
http://PruMT.com

Sellers Getting Comfortable With Today's Housing Prices?

The wealthy may soon be feeling the pinch as the luxury housing market takes a hit. According to RealtyTrac, homes listed for over $1 million have dropped 20 percent in 2012. That means the average sales price for expensive real estate homes has gone from $2.5 million, last year, to just above $2 million. Some higher-priced luxury homes are even lopping off several millions of dollars in hopes of finding buyers. 
 
Interestingly, after many years of waiting and hoping, the more vast real estate market is experiencing some price stabilization and possibly even seeing prices rise a bit. Some say that's because sellers are getting comfortable with the lower sales price. 
 
However, other experts argue that the increase is more likely seasonal rather than a true sign that the market has completely bottomed out. Part of the reason for the skepticism, industry economic experts say, is because there is a large looming mass of homes either nearing a foreclosure or already in progress. As those foreclosed homes quickly and massively come into the marketplace, it's likely prices would drop. 
 
But in the last couple of months, the press has reported on housing inventory dropping in some markets and competitive pricing is most evident in the markets that suffered greatly from foreclosures such as Phoenix, Miami, and parts of Southern California. Markets like Phoenix and San Francisco are seeing some speculative purchasing and that is raising concerns about possible market bubbles. 
 
If you're selling your home now should you be concerned? Not if you're taking the right precautions and hiring the most experienced industry professionals to assist you. Understanding the pros and cons of a particular market is vital.
According to the National Association of Realtors, nationally, first-time buyers made up only 35 percent of existing single-family home sales during the month of April. That compares to 40 to 45 percent of the market in better times. 
 
Statistics like that matter because they point to economic barriers that could keep your home on the market longer than you desire. It's, of course, the tight credit lending restrictions, high unemployment rate, and overall unstable economy that are, in some cases, shutting out first-time buyers. 
 
But the flip side is that continuing low interest rates are still drawing wannabe homeowners out to search for their perfect house which has likely dropped a good 35 percent from what it was during the housing peak. 
 
Another factor contributing to the overall real estate market is that it's an election year. Due to uncertainty, some predict that buyers may be inclined to purchase before the end of the year. Others fear that, depending on the outcome of the election, some of the tax cuts currently in place will expire. 
 
Also, your pricing could be affected depending on the style of home you're selling. The number of buyers interested in the senior housing market is increasing. Lots of Boomers are aging and they have many ailments. Apartment living lacks the privacy they desire but often single family homes aren't suitable. So housing that features senior-friendly accommodations like a master suite on the first floor tend to be in demand. If you have a home that is designed to allow buyers to age in place, it's a good idea to market it that way. 
 
Remember when selling your home, follow a few simple rules. Study the market. Get expert advice. Know your target audience. Highlight the most desirable aspects of your home and, be realistic with your listing price. 

August 10, 2012 -- Realty Times Feature Article by Phoebe Chongchua 

Record Low Mortgage Rates Helping to Stir the Housing Market

In Freddie Mac's results of its Primary Mortgage Market Survey®, the average 30-year and 15-year fixed-rate mortgage hitting new all-time record lows along with the 5-year ARM. The average 30-year fixed has been below 4.00 percent all but one week in 2012. The average 15-year fixed-rate mortgage has been below 3.00 percent for 8 consecutive weeks.
Freddie Mac's Chief Economist highlights how these record low mortgage rates are fueling housing demand in its July U.S. Economic and Housing Market Outlook. 
 

30-year fixed-rate mortgage (FRM) averaged 3.53 percent with an average 0.7 point for the week ending July 19, 2012, down from last week when it averaged 3.56 percent. Last year at this time, the 30-year FRM averaged 4.52 percent.  15-year FRM this week averaged 2.83 percent with an average 0.6 point, down from last week when it averaged 2.86 percent. A year ago at this time, the 15-year FRM averaged 3.66 percent.  5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.69 percent this week, with an average 0.6 point, down from last week when it averaged 2.74 percent. A year ago, the 5-year ARM averaged 3.27 percent. 1-year Treasury-indexed ARM averaged 2.69 percent this week with an average 0.4 point, the same as last week. At this time last year, the 1-year ARM averaged 2.97 percent.     According to to Frank Nothaft, vice president and chief economist, Freddie Mac:    "With little signs of inflation and the Federal Reserve's "Operation Twist" keeping U.S. Treasury bond yields in check, fixed mortgage rates are remaining low and helping to stir the housing market. For instance, the 12-month growth rate in the core Consumer Price Index has been in a narrow 2.1 to 2.3 percent band over the past nine months ending in June. Meanwhile, new construction on one-family homes rose for the fourth consecutive month in June to its strongest pace since April 2010 with builders restocking their lean inventories of new homes.  In fact, homebuilder confidence for the next six months rose for the third month in a row in July to its highest reading since March 2007."  July 20, 2012 -- Realty Times Feature Article

Housing Cycle Reaches Low Point

Home sales volume last year was up modestly over 2010, but there was an important shift in their composition: Investors were stepping up to buy while households dropped back. There’s a positive side to this. Our surveys show that households getting into the market are doing so for all the right reasons. They’re seeking a different home or another neighborhood. They’re not buying just so they can flip the house at the first sign of market change.

These buyers are getting in at the low point of the housing cycle, so meaningful wealth gains over the next few years are inevitable even though financial considerations are not their principal motivation. From 1981 to 2011, despite the housing bust years, home values more than tripled. For that reason, households who bought 30 years ago are sitting pretty financially. Renters’ typical net worth, by contrast, barely changes, so renters today have about $4,000 in net worth, not much different than they had a few years ago. Compare that to home owners, whose net worth is typically around $160,000. That’s down from $230,000 at the height of the housing bubble, but it remains in stark contrast to renters.

Looking ahead, we could see a greater unequal distribution of net worth over time as home prices rise. Those who will benefit the most are those who, like many investors and some households, are buying during this low point.

Unfortunately, many would-be buyers are either hampered by today’s excessively tight credit requirements or earning too little to qualify. On the first problem, we will continue to urge lenders to return to reasonable, pre-bubble standards. On the second, those who lack the income to buy face challenges that go beyond our ability to help. At a minimum, we can encourage young people to stay in school, since high school dropouts are far more likely to struggle economically throughout their lives than graduates.

May 2012 | By Lawrence Yun
Learn what the latest economic indicators mean for the real estate industry.
http://economistsoutlook.blogs.realtor.org

Big Sky Returns

For the past few years we've all been hoping for the best while preparing for the worst. Just when the news cycles seemed the bleakest, a ray of hope would peek through the mist when things started moving into positive territory, another shoe would drop and correct the mood.

And then there's Big Sky in the summer.

What's not to like? A new movie theatre is now showing first run films in a first rate facility. New restaurants have added to the selection of fine dining venues. There are zip lines, mountain biking trails and outdoor concerts. The days are sunny and the evenings are cool. And real estate prices are at pre-2004 levels‹that seems like a bargain, and it is. Even the afternoon thundershowers only help add drama to the already beautiful panoramas.

While not completely insulated from the events affecting the rest of the country, this resort community has developed a strong attraction for many people, and it's continued to improve and grow, not always in a linear progression, but grow nonetheless. Following the triple blows of the Yellowstone Club reorganization, the Moonlight Basin reorganization, and then the liquidation of the Club at Spanish Peaks, the area is now somewhat chastened by the recession, but in a solid position for continued growth.

A much-improved Highway 191 makes driving Gallatin Canyon from Bozeman to Big Sky smoother than ever. The Bozeman-Yellowstone International Airport's expansion was perfectly timed, and the facility can now receive more than 400,000 visitors annually and has added more direct flights than ever before. The Big Sky ski resort posted its largest ever skier day-count numbers last winter. Moonlight Basin had its most profitable ski season ever, according to MLB reps. Yellowstone National Park down the road anticipates record-breaking visitations in 2012.

The sporadic recent reports of the national decline in housing inventory are mirrored in our local supply of housing stock. Here's what that means for the Big Sky market:

There are currently 101 "improved" properties listed in the Meadow area for sale; those are homes, condos and town-homes. In the Mountain Village there are 152, with a high-end listing for $5,850,000 and a low end of $59,500 in the Hill Condos.

So, what's sold? Well, 81 Mountain Village properties sold in the last 12 months, 67 properties for under $1 million and 14 for more than $1 million. The top end property sold for over $5 million. In the Meadow, 100 properties sold during the past year. Four of those sold over the $1 million mark, seven were sold for between $500,000 and $1 million and 89 sold for under $500,000. Twenty-nine sold for between $250,000 ­ $500,000 and 61 units sold for under $250,000. Thirty-nine of those sold for under $150,000.

Of the 181 properties that sold in the past year, the average DOM (days on market) was 230, with a several sales on the market for 0 days (priced attractively, no doubt), and 14 properties listed for over 600 days, seven of which were listed for over 1,000.

Evaluating both areas, there are 253 currently listed properties, and there were 181 sales in the last 12 months. This shows that over 70 percent of the supply of housing was absorbed over 12 months. Seventy percent absorption means that there are still some listings out there, which have failed to attract a buyer, for some reason or another; however, with a 3.6 month supply of housing, the market is tightening up.

We're seeing price increases in some sub markets. In Cascade, for example, the high price two years ago was $1.25 million for a single family home. This past spring there were three sales at $1.39 million, $1.5 million and $1.65 million.

All and all, those are nice Big Sky market returns.

Eric & Stacy Ossorio - Brokers

Eric Ossorio is a managing broker of the Prudential Montana Real Estate/Ossorio Real Estate Group in Big Sky, where he works with this wife and partner Stacy.

He's lived in Big Sky for 20 years, and been a broker for 35. Having almost seen it all, he sees no reason to live anywhere else. Contact him at (406) 539-9553 or ossoriorealestategroup.com

Real Estate Outlook: International Boom

International sales were up considerably in the last year, with low prices and a weak American dollar attracting international buyers.
The latest National Association of Realtors 2012 Profile of International Home Buying Activity found that residential international sales rose from $66.4 billion in 2011 to $82.5 billion for the year ending in March 2012.  
"Today's advantageous market conditions have drawn more and more foreign buyers to the U.S. in recent years, signaling how desirable and profitable owning property in this country can be," said NAR President Moe Veissi, broker-owner of Veissi & Associates, Inc. in Miami, Fla. "Low housing prices, a good inventory condition and increased buying power with today's exchange rates help attract international clients. Foreign buyers also have the advantage of working with a Realtor®. Realtors® who specialize in serving international clientele have a truly global perspective; they know what hurdles foreign buyers  face when purchasing property in the U.S., and have the expertise and knowledge that comes from working with clients from different cultures and real estate practices."  
Several areas attracted more international interest than others. The NAR survey found that Florida, California, Texas, and Arizona led the way. Florida was a hub of activity, making up 26 per cent of all foreign purchases nationwide. California came in a close second, accounting for 11 percent of all foreign purchases.
The survey found that European buyers were attracted to East Coast locations, while Asian buyers tended to pursue homes on the West Coast. Demographics were mixed for areas such as Florida and Texas. Texas was a popular buying ground for Mexican buyers, while Florida found interest among South Americans, Europeans, and Canadians.
Leading the way in foreign purchases by country was Canada, followed by China. Canada accounted for 24 percent of international sales while China accounted for 11 percent, up from nine percent in 2011. Mexico was third with eight percent of sales and India and the U.K. both accounted for six percent.
"Foreign buyers recognize that owning a home in the U.S. has many benefits, both financial and social," said Veissi. "Many purchase property as an investment, vacation home, or to diversify their portfolio. In addition, many recent immigrants view homeownership as an important accomplishment. They believe that being a homeowner is one of many ways they become established in the U.S. and attain stability, security, and a sense of community."
These are not all vacation properties, either. Many of the homes purchased were bought as primary residences. 

July 2, 2012 -- Realty Times Feature Article by Carla Hill 

Optimism Returns to Market

According to the latest HomeGain survey, optimism has returned to the market. The 1st quarter National Home Values Survey found that 37 percent of real estate professionals expect to see home values increase. This is up from 15 percent last quarter. 
 
"Real estate professionals have grown more optimistic regarding the direction of home prices, especially in the states that have been hardest hit in the past few years, like Arizona, Nevada and Florida and also in states that have done comparatively well, like Massachusetts and Virginia." said Louis Cammarosano, General Manager of HomeGain.
A quarter of homeowners are feeling the same optimism. Twenty-five percent reported they expect home values to increase as opposed to 15 percent last quarter.
The survey also found that:

• Twenty-two percent of real estate professionals expect home values to decrease in the next six months, down from 42 percent from last quarter.
• Twenty-nine percent of homeowners expect home values to decrease in the next six months, down from 37 percent from last quarter.
• Forty-one percent of real estate professionals and 46 percent of homeowners believe home values will stay the same in the next six months.
• 77 percent of homeowners believe their homes are worth more than the recommended agent listing price.
• Likewise, 62 percent of home buyers believe homes are overpriced.

Things got political in the 1st quarter survey with over half (52 %) of agent and brokers indicating they "strongly disapproved" and "somewhat disapproved" (14%) of Barack Obama's performance as President, earning him a 66 percent disapproval rating, an increase of two percent in the disapproval rating of agents and brokers surveyed in the first quarter of 2011. 
 
This rating was down 4 percent, however, from the fourth quarter of 2011 when the President had a 70 percent disapproval rating among agents and brokers. 
 
For homeowners, the disapproval rate had fallen as well from the 4th quarter of last year. The survey found that "forty-one percent of homeowners "strongly disapproved" and 15 percent "somewhat disapproved" of the President's performance, earning him a 56 percent disapproval rating. The President had a 60 percent disapproval rating last quarter among surveyed. 

May 31, 2012 -- Realty Times Feature Article by Carla Hill 

Vacation Home Market

Are you in the market to buy a vacation home? If so, you're not alone. There is a ripe and ready segment of today's market that is geared up for taking advantage of today's favorable buying conditions. 
 
According to the latest National Association of Realtors Investment and Vacation Home Buyers Survey, vacation-home sales rose 7.0 percent in 2011. Investment property purchases were up a staggering 64.5 percent. Many of these were distressed properties being sold at steep discounts.
In comparison to the total sales, vacation-homes were 11 percent of all transactions for 2011, up a healthy 10 percent in 2010. 
 
NAR Chief Economist Lawrence Yun said investors with cash took advantage of market conditions in 2011. "During the past year investors have been swooping into the market to take advantage of bargain home prices," he said. "Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property." 
 
These investment buyers are pulling out the cash as they look into buying these rental properties. Forty-nine percent of investment buyers paid cash in 2011. Forty-two percent of vacation-home buyers did the same.
"Clearly we're looking at investors with financial resources who see real estate as a good investment and who aren't hesitant to use cash," Yun said. "Of buyers who financed their purchase with a mortgage, large downpayments were typical. The median downpayment for both investment- and vacation-home buyers in 2011 was 27 percent." 
 
What types of buyers are scooping up today's vacation homes? The NAR survey said lifestyle factors are the leading motivator. These homes are more likely found in suburban and rural areas.
The median vacation-home price was down 19.1 percent from 2010 to $121,300. The NAR reports, "The typical vacation-home buyer was 50 years old, had a median household income of $88,600 and purchased a property that was a median distance of 305 miles from the primary residence; 35 percent of vacation homes were within 100 miles and 37 percent were more than 500 miles. Buyers plan to own their recreational property for a median of 10 years." 
 
Additionally, 16 percent of vacation buyers bought the property for a family member (such as a child going attending school), friend, or relative to use. 
 
Regionally, 42 percent of vacation home were purchased in the South, 30 percent in the West, 15 percent in the Northeast, and 12 percent in the Midwest. 

Realty Times Feature Article by Carla Hill 

Things You Should Know Before Buying a Luxury Home

Luxury New Market Realities

1. It's a great time to buy - really! Compared to real estate overall, the high end has seen a resurgence in sales but there is still no shortage of excellent buying opportunities. Equally desirable are interest rates, which even for jumbo loans are exceptionally low.
2. Trading up? Sell low, buy even lower. Even if you have to sell your current home for less than you want, chances are you still come out ahead. "Once you find out what a good deal you might get on your purchase, that big discount on your existing house will be much easier to stomach, " says Paul Boomsma, president of Luxury Portfolio International. Factor in ultra-low interest rates and the prospect of selling low becomes even more palatable.
3. Don't be surprised to discover you are not the only buyer in the marketplace. The opportunity to own a fabulous home for a fraction of the cost of only a few years ago continues to entice consumers worldwide; interest from international buyers in U.S. real estate has never been higher.
4. Multiple offers still happen. Even though there are a large number of homes for sale, really good inventory gets noticed. "When a property is done and priced at the market, it will definitely attract multiple offers and that's very surprising to buyers," says Betty Graham, president of the Coldwell Banker Previews International division for NRT.
5. Not all sellers are desperate. "Distressed sales are part of the market but they are not the whole market," observes Mark Nash, a Coldwell Banker Residential Brokerage agent in Chicago and author of "1,001 Tips for Buying and Selling a Home."
6. Taking a hard line in negotiations isn't always the best strategy; sometimes patience brings a better pay-off. It is important to "give buyers enough time so they will thoughtfully consider your offer," says Graham.
7. Cash is king. One of the biggest changes in the last five years is that more luxury buyers are opting for a cash deal. The motivation is not a lack of available loans; rather, luxury buyers understand they often can negotiate a better deal using cash, observes Joyce Rey, executive director of Coldwell Banker Previews International. "If there are fewer contingencies, then sellers are more likely to accept a lower price."
8. Don't worry if it's a buyer market or a sellers marketing; instead focus on getting a handle on what's happening today in your target location and price range.

Source: Unique Homes by Camilla McLaughlin