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  Buying & Selling , Vacation Rental Market Q&A: Destin, Florida  
 
     
Vacation Rental Market Q&A: Destin, Florida

An interview with Destin, FL realtor, Shannyn Stevenson about buying a vacation home in the Destin vacation rental market.
 

Vacation Rental Market Trends

Destin, FL

A Q&A with Destin realtor, Shannyn Stevenson.  Listen to Christine's podcast interview with Shannon.

 


How is the housing market in Destin? Destin is kind of an unusual market.  Most buyers are investors, not first-time homeowners. These are people who've bought homes before and are looking for properties that will generate income.

Any trends that you've noticed? 

  • Most buyers buy with the intention of renting.
  • Many people buy properties sight unseen.
  • Buyers are becoming more aware of listing sites like VRBO.

The typical buyer: 35-45 and lives within driving distance of Destin.  A lot of our clientèle is from Georgia.  Though, we're seeing it expand to areas that aren't necessarily within driving distance-- some from 13 or 14 hours away.

Avg. cost of a home:

Low-end: 1BR condo on the gulf that sleeps 4 is typically $370-400K. A 1BR with a setup for bunk beds that sleeps 6 is $425-450K.

Mid-range: 3BR condo. Looking at 700K+.

High-end: Luxury, high-quality condos with a lot of square footage and amenities can run anywhere from $1.3-1.5 million.  Most people who buy these condos will not rent them out.

What do prospective buyers look for in a vacation property in your area?

Property Type: Properties that generate income. Houses, condos.

Location: Gulf front or gulf view condos-- nothing less. For houses, investors tend to lean toward houses that are at least a block from the beach.

Any specific amenities: Definitely a pool. Heated pools are nice because you get a lot of snowbirds or tourists down here in the winter time.

What tourist attractions and events would pull in renters?

Waterpark and go-cart track for kids.  Golf courses, great restaurants, tons of shopping for adults.  The Baytown wharf area is a lot like New Orleans and has events.  Last year, Destin hosted a huge golf tournament that brought tons of people into the town.

Destin is laid back and family-oriented.  You won';t find many college students down here at Spring Break-- that's more Panama City Beach. We get more families with younger kids or families that bring their college kids down with them.

Tips for buying a vacation rental home in the Destin area:

  • When buying get all of the information, such as the condo documents.  These will contain important information about condo owner meetings, etc. 
  • When you buy into a condo, you want to know what';s happened in the past and what may be coming up in the future of the property.
  • Definitely make sure that you ask what the hidden costs are when signing with a management company. Many rental companies tell you that they charge a certain percent and then end up having hidden fees that it equal much more than the quoted percentage.
  • As soon as you can, get your property rented. 
  • If you buy a condo that needs a little fixing up, plan to do it after the rental season.

And lastly, why should a buyer choose a vacation rental home in your area? Whenever I show properties I always hear “I wish I would have bought a property three years ago when it was first taking off.” What I tell buyers is that if they missed out on buying a property on the first go round, here's your second chance to get in the market. Because it is going to go back up and is going to take off again and you don't want to miss out a second time.  

Shannyn Stevenson has 10 years experience in successfully buying and selling homes in the Destin and Santa Rosa Beach markets and knows the neighborhoods, condos, schools, market conditions, zoning regulations and local economy.   www.KnowTheGulfCoast.com


To get a feel for the Destin Vacation Rental Market or to find a great vacation property to rent, browse Destin Vacation Rentals on HomeAway.com.

Are you a realtor in a vacation market who'd like to do a Q&A? Email us.

What other advice do you have for homeowners looking to purchase a vacation rental in Destin?


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