Selling a 2nd home...any regrets

[arch57]

We have owned a 2nd home on a quiet lake in the Maine foothills for 15 years now. It's 250 miles from our primary home and the drive can take 4-6 hours depending on how often we stop and of course traffic. We bought in 2006 in our late 40's while still working and through a ton of sweat equity turned a dumpy sad looking place into a picture perfect lake retreat. It is year round an we do spend 60-90 days a year, visiting in almost every month.

However, the long drive and the birth of our granddaughter 2 years ago have made it harder to get up here to relax and the pull to visit our granddaughter grows stronger as she grows. They also live 1 1/2 hours away but in the opposite direction of our place in Maine.

So with the crazy real estate market we consulted a broker this week. My wife and I were floored with the state of the market. We had been hearing about the multiple offers, many cash, most above asking but didn't realize it was happening here in Maine. She told us she would list it on Wednesday have showings until Sunday when all offers are due by 5pm. Expect 15-20 offers and she thinks $50-100K over asking!!!

As we mull over the decision we are worried about those regrets for never being able to recapture this magical place. Like DW said "we'll never be able to buy it back". Sure it has been a hassle having two places, keeping both of them in top notch shape, dealing with scheduling events, doctor appointments, family visits etc. If we did sell we don't have any concrete plans yet as to what to do with the proceeds? Do we sell and move closer to our granddaughter? Do we buy a place in a warmer climate? Do we find another 2nd retreat but closer to our home in central CT?

Mostly any regrets or realization it was a good decision from others on selling a beloved 2nd home.

 

[Ronstar]

We had a second home - a snowbird condo that we sold in anticipation of buying a full time in the snowbird location. We sold the condo, but haven’t bought the new full time home.

So while I have the proceeds from the sale, I no longer have the enjoyment of the second home. To me, the enjoyment of the second home had more value than the proceeds that were lumped into my portfolio. I didn’t need the money - I needed the place.

So before selling, I would recommend really analyzing how much you enjoy the place. If you get more happiness from the place than you would from sale proceeds, then keep the place. Otherwise sell it and take the money.

 

[Bamaman]

I too have a lake house--65 minutes drive from home.

I am there 1-2 days a week cutting grass and reconditioning the place. But we've not spent any appreciable time there in 3 years. Life and raising 2 grandkids gets in the way.

The house costs about $300 a month for taxes, insurance and utilities--not bad. And it appreciates all the time. As long as my health holds, we're going to keep it. The lot alone is worth 130 times what my grandmother paid for it in 1945.

 

[ivinsfan]

This doesn't sound like a place that you would ever make into your primary home.



What are the income tax consequences of this sale? Remember you could always sell your primary residence with a tax free exclusion moved to the lake for a the required time( I think it's 3 years) sell that and have another exclusion..if I understand the rules correctly.



You don't actually mention money or how this cash would fit into your retirement lifestyle.

 

[arch57]

You don't actually mention money or how this cash would fit into your retirement lifestyle.

This would NOT become our primary home. It's a situation where we would almost double what we put into the home with initial cost and repairs. We never thought we would recoup those costs when the market was stagnant for years. To know we could sell it in one weekend for more than asking is both exciting and terrifying.

Fortunately though we are in a position where we don't need the cash. It could fund a place down south or another primary home closer to our daughter.

 

[pb4uski]

My only thought is that as your grandchildren grow are you going to want them spending lots of time with you at this second home? If you don't have it you may not have that opportunity, though I guess that you could always rent a place on a lake for a few weeks.

My mom has a second home that was her summer home from the summer Florida heat and all of her kids and grandkids spent lots of time there over the years and cherish their experiences at "camp". My nephew stores two boats and my sister stores a boat and a jet ski there.

 

[Brat]

We sold our vacation home in Sunriver. The drive became too much and kids were soon to start college. The profit helped pay college tuition.

I recommend selling the vacation place and put part of the profit in a 529 for the grandchild. Look at the cost of one year at a university in your daughter's state of residence. That would be a good amount to start with. If your daughter has more children do the same for them.

 

[Scuba]

I think it depends how much you enjoy the home. It sounds as though you don’t need to sell financially, so maybe asking yourself some questions would help. Would it bother you more to sell it and wish you had it back later, or to keep it and have it decline in value and not be able to make money on it later? If you sell it, is there another area you’d rather have a second home, or would you use the proceeds to rent in a different location?

I personally like renting homes in places I want to visit rather than having a second home I’m committed to, but YMMV.

 

[GreenEggs]

Short answer:

The 4-6 hour drive would be too far for me. I'd let it go while the market is hot.

 

[38Chevy454]

Agree that sounds like you will use it less in future. Maybe consider if you would rather have a southern snowbirding place instead? Maybe something that family could use or be happy to visit you there. Like around Disney for the grandkids?

 

[Scrapr]

We had a vacation home in Bend for years. 3 hour drive on non holiday periods. I used it to overnight for work but did not deduct anything. My wife & I moved full time there & sold the big house. It was perfect for us. Good neighborhood, small but comfy & park & trails nearby. I was on a retirement track. Fast forward a couple years my wife catches cancer & passes. I'm there alone. I sold the house last year & moved back to Portland area. With Covid it was really isolating. I had better support & friends in Portland.

Was back in Bend last week & it was not the same. Stayed in a motel. Not as close to trails or parks. Not close to neighbors. I still love Bend. And I love my new neighborhood. I'm just going to have to pick a better place to stay in Bend. When we had the Bend house we always felt like we had to go to Bend. We had not been to the beach for years. Since I sold I've been over at the coast 4 or 5 times.

Of course if I knew prices that were already high would skyrocket I would have held on to the Bend house for a while. Prices are up YoY about 25-30%. But c'est la vie

 

[arch57]

My only thought is that as your grandchildren grow are you going to want them spending lots of time with you at this second home? If you don't have it you may not have that opportunity...

Our granddaughter spent 6 days there in late June when she was only 22 months old. Ever since then whenever we see her she says "I wanna go to Nana's lakehouse and swim in my pajamas". It was a wicked hot evening so instead of bedtime we let her go back into the water. So it already has had an impact on her young little mind.

 

[ExPatKiwi]

I'd sell and reinvest some of the proceeds in your primary home...swimming pool etc.

 

[ducky911]

We have 4 granddaughters(ages 11y to 4m) and they all love our cabin. Really get to know them better on a long weekend retreat. We setup a bunkbed room for them.

 

[cyber888]

I sold a 2nd home - a log home. No regrets, because my neighbor was cutting trees and made the mountain look bald. The maintenance was also a lot of work - carpenter bees drilling on the wood, mowing. It was a 3.5 hour drive. DW and I thought we'd be better off traveling to Europe every summer, and we also have a timeshare for 3 weeks that we can exchange anywhere.

It really depends on you - how much do you like it and how much you are attached to it.

 

[Markola]

I’ve never had regrets turning in the keys from the large variety of spectacular places we have…..rented [emoji41]