With soaring home values and low inventory, finding some of your home buying clients even one primary residence they can afford might be challenging. But what about a second home?

According to Redfin data, demand for second homes is soaring well above pre-pandemic levels. That’s even though houses are selling for record prices as competition remains high. Affluent buyers aren’t the only ones driving this trend. Even middle-class families are seeking second homes that can serve specific purposes.

This increased demand for second homes is good news for you. Past clients who already own a primary residence may be open to the idea of purchasing a second home they can get for a good deal because of low-interest rates or if it’s considered a fixer-upper.

There are several reasons your prospects should consider purchasing a second home during these current market conditions. Share these with them and gauge their needs and interests.

Interest rates are too low to ignore

Already in 2022, mortgage interest rates have increased. That’s not a huge surprise considering the costs of practically everything, including gasoline and groceries, are soaring. But putting the interest rates into perspective, they are still low enough to entice homebuyers.

Your clients who have ever considered owning more than one property may want to now take advantage of these lower rates. If they’ve been able to sock away some cash from last year’s stimulus payments or bigger tax refunds, that may be enough for a solid down payment on a second home.

Desire for a vacation home

If your clients like to vacation or get away once in a while, they understand that it can get expensive. Renting beach homes, condos, or other lodgings short term isn’t cheap. What if they actually owned the property they vacationed at and could go there anytime they wanted?

Buying a second home to use as a getaway could be a sound investment. Not only could your client use it as a retreat for themselves, but if it’s located in a desirable spot, they could rent it out to others throughout the year to help recoup some of the costs.

Rental income

As many real estate professionals understand, real estate investment can be lucrative. But your client doesn’t have to own a high-rise property or apartment complex to benefit.

Now might be the time to purchase a second home for investment purposes. Even the most modest property could be used as a rental property as a way to yield extra income. Your client could always decide later whether they want to make this their primary residence, sell it at a higher profit or keep it as a long-term real estate investment.

Ability to work remotely

The pandemic changed the way – and where – we work. Many of your clients may now have the capability of flexibility to do their jobs from virtually anywhere. In some cases, that could eliminate the need to live in specific places near their company’s headquarters or offices.

While they still may be rooted in a specific area because of family, some of your clients might want the freedom of spending parts of the year at a second home somewhere else.

A second home may also be needed out of necessity. If your client has to work remotely permanently or often, they may need a home that’s functionally suited for that if their primary residence isn’t.

While some of your clients might think second homes are just for the rich, it’s not true. Make sure they understand why they should give it some thought now as the demand for second homes continues.