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Buying a second home isn’t a quick process — it takes time, and a lot of planning.
Financial planner and co-founder of Facet Wealth Brent Weiss has seen several clients buy second homes, and says there’s one important thing to have before you start.
“The No. 1 thing that people need to do is have a plan around it,” he says. “If you do it right, it becomes a really amazing part of your financial plan, and it’s a successful moment for you.”
In order to build a solid plan, there’s a lot that needs to happen before you even start thinking about the home itself.
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Set a realistic budget before you start searching
Weiss says his clients often skip one of the most important steps in the process of buying a home: setting a realistic budget for how much second home they can actually afford.
“The biggest mistake that I see among second home buyers is that people start looking before they set realistic goals or have a plan for it,” he says.
“People start Zillowing, and they go online and look for houses. And guess what happens? They call me and go, ‘I’ve found my dream home,’ and it is inevitably more than we probably should fit into the budget,” Weiss says.
Instead, he recommends anyone thinking about a second home purchase start by setting up the financial side first.