As a real estate agent, there are many niches to consider. You have likely already specialized in a local area or in some type of niche, but have you considered the niche of vacation homes?
This niche can be very exciting and can be very profitable. Vacation homes are very hot now and have been for several decades. If you want to work in a very exciting part of the real estate market, the vacation home niche is a great choice.
In 2020, there was a pretty big surge in second-home purchases. This was mainly due to the lower interest rates, but the vacation home niche hasn’t slowed down. Many buyers are seeking vacation homes making this a very profitable and very popular niche for the right real estate agents.
Why is Vacation Home Niche Booming?
With more and more people working from home, it stands to reason more and more people are looking for vacation homes. Having a second home in a desirable destination can allow someone to continue to work easily, while on vacation. It’s easier to work from home, in your own home, than in a vacation rental house.
This, along with the lower interest rates helped give people more access to vacation homes. While first-time buyers may be struggling to find an affordable home, those with the financial means are looking for a second home. Vacation home seals have been booming for a few years and as an agent, you can enter this exciting niche.
What does the Vacation Home Buyer Look Like?
If you plan to specialize in the vacation home niche, you’ll want to know what this homebuyer looks like. When the National Association of Realtors did a survey of more than 2,300 second-home owners, they found a few things including:
- About one-third choose a home near the beach
- More than 20% look for a lakefront home
- Another 15% of second-home buyers want a home in the country
- About half of vacation home buyers want a detached, single-family home
- Less than 7% of vacation home buyers bought with any intention to rent the home out to generate income
- Many vacation home buyers pay cash
- Over three-fourths of vacation homebuyers put at least 20% down
- Only 4% of those buying vacation homes were first-time buyers
These stats help paint the picture of what a vacation homebuyer looks like. If you want to go into the vacation home niche, you don’t have to work in a tropical area. All that is necessary is that you have an area with homes someone might want as their second home. This could be near a beach, lake, or even out in the country.
Huge Benefit of the Vacation Home Niche
As a real estate agent, one of the biggest benefits you gain working in the vacation home niche is a very fast closing. Unlike the purchase of a primary residence, vacation home buyers want to close very fast. With many of these transactions including all-cash offers, you might close a vacation home sale in just two weeks.
Cash transactions come with fewer contingencies and without a lender, there are fewer hoops to jump through. This can lead to a much faster closing, which means you can close more deals each year in this real estate niche.
How to Specialize in the Vacation Home Niche
You can pursue a very specific NAR certification if you want to enter into the vacation home niche. This certification is known as the Resort and Second-Home Property Specialist (RSPS) certification. It’s not expensive and it will give you a good foundation of knowledge.
You will learn many different things with this certification. Plus, it will give you the credentials you need to gain trust from your clients.
If you’re considering specializing in a new niche, the vacation home niche might be perfect for you. It’s a profitable and very exciting niche in the real estate world.