Hi Alina,

Price per square foot has some serious limitations. Materials, construction techniques, finish and condition vary widely and therefore the square foot approach would have to keep all these constant to have real use.

If the property has a rental history the previous reply is helpful, Usually investors try to determine the probable inclone, estimate expenses and then look for other advantages. Investors are interested in the rate of appreciation in the area and the depreciation effect on their taxes. The best economic advantage is generally a buy and hold option which will normally beat the flipping approach. (We know, the TV shows show flipping as a great option.) Sometimes it is.

If you are looking at a property for your own use, consider both the investment advantage and the cost of alternate vacation rentals, entertainment and restaurants. A combination of personal and business use will require a combined approach.

After all that, why not have a local realtor show you several similar properties, compare prices and features and then ask what the discount from list to sale price has been.

Sincerely,
Ann & Jim Malloy

Alina: To determine a vacation property's value, you would take the steps needed to determine the value of any other property, such as using recent comparable sales. If you are planning to use the property as a vacation rental, you will also want to check rental and occupancy rates. Finally, it would be important to verify what average market time is for homes in the area you are considering. That information will show how "liquid" your investment might be.

Compare the property to other nearby sold properties is probably the best way.