Why You May Want To Cash in on Your Second Home

Appfolio Websites • June 11, 2021

Why You May Want To Cash in on Your Second Home



When stay-at-home mandates were enforced last year, many households realized their homes didn’t really fulfill their new lifestyle needs. An office (in some cases two), a media room, space for children to learn, a gym, and a large yard are all examples of amenities that became highly desirable almost overnight.

Zelman & Associates recently reported that sales of primary residences grew by 9% in 2020. That increase in demand was met by the lowest supply of homes for sale in history. High demand and low supply caused prices to skyrocket over the past twelve months. Here are three home price indexes released most recently that show how home values have risen:

Prices increased by double digits in every region of the country and in 19 of 20 major metros. Chicago was the only exception, where prices still rose by 9%.

What does this mean to those who purchased a second home during the pandemic?

Many people didn’t want to give up a home in the city or close to their office. Instead, they purchased a larger second home farther away and moved there to stay safe and have more space. According to the same Zelman report, sales for second homes rose an astonishing 27% in 2020.

That large second-home retreat on a lake or in the mountains would demand a higher price than the average house. Let’s assume a buyer purchased such a home for $500,000. Assuming the middle 13.2% appreciation shown above, that home would now be worth about $566,000.

Those who bought second homes to improve their lifestyle during the height of the pandemic, or those who just wanted to be in a safer environment, also made a great investment.

What should these homeowners do now as the pandemic is receding, and the economy is reopening?

The buyers of those second homes now have a decision to make. Many will move back to the original home they still own (the one that’s closer to work, friends, and family). Should they keep the second home? That could depend on answers to questions like these:

  • Now that you may have to go back to the office (at least a few days a week) and students are required to physically attend school, would you still use the second house enough to warrant the expenses of an additional home?
  • Would you go to the second home on most weekends, or would you return to the movie theater, attend sporting events, eat out at fine restaurants, or spend your time traveling again?

Bottom Line

If you purchased a larger second home during the pandemic, you were able to make day-to-day life much easier for those important to you. You also made it much safer. However, with those goals already accomplished, you now need to decide whether to continue paying the extra expenses or sell the house and cash in your profit. If you decide selling makes sense, let’s connect today to discuss the value of your second home.


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The #1 Regret Sellers Have When They Don’t Use an Agent

By KCM • February 2, 2026
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Are Big Investors Really Buying Up All the Homes? Here’s the Truth.

By KCM • January 28, 2026
Are Big Investors Really Buying Up All the Homes? Here’s the Truth. It’s hard to scroll online lately without seeing some version of this claim: “Big investors are buying up all the homes.” And honestly, if you’re a homebuyer who’s lost out on a few offers, that idea probably sounds believable. When homes are expensive and competition is tight, it’s easy to assume giant companies are scooping everything up behind the scenes. But here’s the thing: what people assume is happening and what the data actually shows aren’t always the same. Let’s look at what’s really happening with large institutional investors in today’s housing market – because the numbers tell a much different story than the headlines. The Number Most People Won’t See Online Let’s start with the most important stat. According to John Burns Research & Consulting (JBREC), large institutional investors – those that own 100 or more homes – made up just 1.2% of all home purchases in Q3 of 2025 (see graph below): That’s it. Out of every 100 homes sold, only about 1 went to a large institutional investor. And here’s an important point that often gets missed: that level of investor activity is very much in line with historical norms. It’s not unusually high, and it’s actually well below the recent peak of 3.1% back in 2022 – which itself was still a small share of the overall market. So, while it can feel like big investors are everywhere, nationally, they’re a very small part of overall home sales. Why Investor Activity Gets So Much Attention There are two main reasons this topic gets so much attention: Investor activity isn’t spread evenly. Investors are more active in certain markets, which can make competition feel intense for homebuyers in those areas. As Lance Lambert, Co-Founder of ResiClub, explains:“On a national level, “large investors”—those owning at least 100 single-family homes—only own around 1% of total single-family housing stock. That said, in a handful of regional housing markets, institutional and large single-family landlords have a much larger presence. ” Investor is a broad term. Part of what makes the share of purchases bought by investors sound so big is because many headlines lump large Wall Street institutions together with small, local investors (like your neighbor who owns one or two rental homes). But those are very different buyers.In reality, most investors are small, local owners, not massive corporations. And when all investors get grouped together in the headlines as a single stat, it inflates the number and makes it seem like big institutions are dominating the market (even though they’re not). Yes, big investors exist. Yes, they buy homes. But nationally, they’re responsible for a very small share of total purchases – far smaller than most people assume. The bigger challenges around affordability have much more to do with supply, demand, and years of underbuilding than with large institutions competing against everyday buyers. That’s why it’s so important to separate noise from reality, especially if you’re trying to decide if now is the right time to move. Bottom Line If you want to talk through what investor activity actually looks like in our local market, and how it impacts your options (or doesn’t), let’s connect. Sometimes a little context makes all the difference.

Why January Is the Best Time to Kickstart Your 2026 Home Search

By Inner Circle • January 22, 2026
It’s a new year, and if buying a home in 2026 is on your mind, there’s one simple piece of advice worth hearing first: get started now. Not in March. Not in spring. Not “when the weather gets better.” Now. Why? For starters, buying a home takes time. A recent Realtor.com article suggests getting started at least six months before you plan to close. That doesn’t mean starting in January automatically puts you on track for a June closing. In fact, if you get started now, there’s a good chance you could be in a home much sooner than that. On the flip side, even if you don’t plan to move until later in the year, beginning the process early still puts you in a far stronger position when you’re ready to make offers. You’re almost always better off starting sooner rather than later. There’s a lot involved beyond simply finding a house you like. Financial preparation, getting pre-approved for a mortgage, understanding what you can truly afford, getting a handle on the existing inventory, touring homes, writing offers, negotiating terms, and finally closing — all of that takes time. And that’s before factoring in local competition and inventory. But as we head into this new year, there’s another reason starting early matters even more — and it has everything to do with what’s happening in the market right now… It’s Finally a Buyer’s Market in Many Areas… But It Might Not Last One of the biggest reasons to begin in January is where the market stands right now. In many areas, conditions are unusually favorable for buyers — and that’s not something to assume will stick around. According to recent housing market data , there were roughly 37% more sellers than buyers across the U.S. in November 2025, one of the largest gaps on record going back to 2013. A gap that large can give buyers more negotiating power. It often leads to more options, more time to consider choices, and greater leverage when it comes to price, terms, and requests for seller concessions. But that gap can easily close. Many buyers put off looking for a home until the spring market “officially” begins. That’s in quotation marks because there really is no official date for when the spring market begins. But at some point in the next few months, there will likely be a surge of buyers entering the market. When that happens, competition will increase and many of the advantages buyers enjoy early in the year will likely begin to shrink. Buyers who wait may find themselves facing more multiple-offer situations, tighter negotiations, and less room to ask for concessions. Getting started in January doesn’t just give you a head start — it gives you a shot at taking advantage of conditions that may look very different just a few months from now. The First Thing to Do After the First of the Year If you’re even just thinking about buying a home in 2026, the most productive first step after the new year isn’t scrolling listings or heading out to open houses — it’s having a conversation with a local real estate agent. National headlines are helpful for understanding broad trends, but real estate is extremely local. Conditions can vary dramatically from one city to the next, from one neighborhood to another, and even from one price range to another within the same town. An agent can walk you through what inventory looks like right now, how competitive buyers are in your target price range, and whether sellers are negotiating or still holding firm. They can also help you come up with a timeline and strategy based upon your personal situation and the current market conditions. The Takeaway: Buying a home almost always takes longer than people expect. That’s why many experts recommend starting the process at least six months before you plan to move. That doesn’t mean it has to take that long — plenty of buyers find and close on a home much sooner. But it does mean that giving yourself time is rarely a bad idea. Starting as early in the year as possible is always smart, but starting early in 2026 may be even smarter. With roughly 37% more sellers than buyers — the largest gap we’ve seen since 2013 — today’s market is offering buyers opportunities that may not last once more people jump in later this year. Waiting until spring could mean more competition and fewer advantages than buyers see right now. If you’re even thinking about buying in 2026, getting the ball rolling in January can put you in a much stronger position. And the best first step isn’t browsing listings — it’s talking with a local real estate agent who can explain what’s happening in your market, help you set realistic.
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