Napa Valley has long been one of the most alluring areas to live and visit in Northern California. With over 400 stunning wineries, picture-perfect weather, fine dining destinations, splendid spas, and upscale shopping areas, Napa Valley manages to hold its position as the place to be despite market shifts and the global pandemic. Situated inland from the Pacific Coast and mostly set back from the busy 101, the cities in Napa Valley are quiet, quaint, and secluded, offering refuge to residents and tourists alike. It feels like a collection of charming luxury villages complete with walkable downtowns and friendly neighbors who open doors for each other.
Investors have long kept Napa Valley real estate in their sights. These homes are large enough to rent to entire families or singles who are visiting from out of town for a retreat. Many of the properties in the area come complete with pools, hot tubs, outdoor dining spaces, and luxurious indoor amenities.
As a top tourist destination, Napa Valley is hard to beat, and if you are looking for a vacation home, there is no better place to buy than in a popular tourist destination like this one. When considering buying one of the Napa Valley homes for sale, you have a few things to consider.
The Napa Valley real estate scene
The Napa Valley real estate market has remained steady for decades and is on the incline. Properties here promise glorious hillside views, pristine landscaping, expansive entertainment spaces, and top amenities like tennis courts and more. The
median rent in the area is approximately $1,900 per month, which is much higher than the national average but reasonable for the region, especially considering all that these communities have to offer. Purchasing a vacation home to rent out can bring a solid return if you can find a great investment and strike the right deal.
So, what are some helpful tips when buying a vacation home in Napa Valley?
Tips for buying a vacation home in Napa Valley
Know your budget
Speaking of finding that great investment and the right deal, you will want to know upfront how much house you can afford before you start looking. This knowledge will help your agent find the right property for you and help you calculate your costs and your returns ahead of time. The best way to figure this out will be to get pre-approved with a trusted lender. The lender will run your credit and take your income information, along with a few other pieces of personal information, and then give you an approval amount you can work with. Then, you can add in any other costs to accurately figure out a solid budget.
Know your costs
Yes, you will want to know what costs are included in the monthly maintenance of your vacation home. In most cases, people rent out their vacation homes when they are not using them, so you will want to factor in the expenses you will pay in property taxes, HOA fees, cleaning fees, utility costs, landscaping costs, pool maintenance fees, and property management fees. Calculate all of these fees as best you can well in advance so you know not only how much house you can afford but how much you are willing to spend every month on your investment.
Buy in upscale neighborhoods
With a vacation home, you will not rent your home for the long term. Instead, you will be attracting visitors who are on vacation, so you want to offer them the luxury of staying in a prestigious neighborhood that has easy access to all the activities people flock to Napa Valley for: shopping, dining out, exploring the wineries, hiking, and bicycling. The age-old advice says to buy the cheapest house in the nicest neighborhood. If you can find that sweet gem of a house needing renovations, you can get a great deal on the property upfront and then invest in making upgrades yourself that will raise the property value and the rent prices.
Upgrade your property
You will likely want to upgrade the property no matter what. Unless the house is turnkey and truly brand new, you will need to slap a fresh coat of paint on the walls, upgrade the appliances, and ensure the landscaping looks truly perfect. You will also be investing in fully furnishing and decorating the house for yourself and your renters. In today’s market, it also helps to have optimized homes that include spaces dedicated to games, meditation, exercise, and more.
Furthermore, you can integrate technology with surround sound systems that run through the house, smart assistants in various rooms, and so on. All of these upgrades will increase both the property value and the rent prices, both up-leveling the return on your investment. The nice thing about making these upgrades is that you will get to enjoy them whenever you come to stay.
Invest in a property manager
It may also be helpful to invest in a property manager. This way, you can save yourself the time and energy of having to deal with the day-to-day details of managing your vacation rental, especially if you do not live nearby.
Work with a trusted agent for top-notch advice
Finally, when buying a vacation home in
Napa Valley — or any home for that matter — you should always work with a trusted Realtor who knows the area well and is experienced in vacation homes.
Lauren Lawson is the Napa Valley expert you want by your side. Working in the real estate industry since 2001, Lauren has helped buyers and sellers achieve exactly what they are looking for in Napa Valley real estate. She is proud of her ability to consistently
exceed her clients’ expectations, and she looks forward to serving your needs and helping you find a beautiful vacation home.
Contact Lauren today to get started.
*Header photo courtesy of Shutterstock
