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How to Buy a Home in Ski Country

Only pay for what you want
Prices on ski homes and condos tend to vary based on a wide range of location-related factors, from the quality of a property's mountain view to how close it is to ski trails, shops and restaurants.

Experts recommend deciding ahead of time what you want nearby and what you're not willing to pay extra for.

"A family with kids might want a great family space, while a jet-set couple with no children might just want to be near the local bars and restaurants," Ernemann says. "That's important to think about, because the further you get from heart of a ski town or the slopes, the more bang you'll typically get for your buck."

Consider nearby alternatives
Sometimes you can find ski-house bargains by getting off the beaten path -- literally.

Spencer says many homes in his town are right on ski trails, but people looking for deals can buy properties that aren't and hop on Park City's complimentary buses to reach the slopes.

"If you're on a ski trail, that obviously increases a home's price," he says.

Ernemann says Aspen-area househunters on a budget should consider Snowmass Village, Colo., some eight miles away.

"It's still part of the same resort community, but real estate there has been slower to recover and there are some great opportunities for buyers," he says.

Check a property's rental value
If you plan to rent out your ski property when you're not using it, make sure you know before you buy how it will fare in the rental market.

Ernemann says agents who show you properties will often prepare a free rental analysis for you.

If you're worried about a broker's objectivity, most ski communities have lots of property-management firms that will give you a free market analysis in hopes of getting your future business.

Understand second-home mortgages and taxes
Some lenders have different underwriting standards for second-home mortgages, so don't assume you'll qualify for a loan or get today's lowest rates if you're buying a vacation property.

Ernemann says some second-home buyers end up paying around 0.5 to 1 percentage point higher interest these days than they would for a loan on a primary residence.

"Some banks charge a premium on interest for second homes, although the spread isn't nearly as much as it used to be," he says.

Buyers should also understand how federal tax rules apply to vacation homes.

For instance, you can generally deduct the mortgage interest you'll pay on your vacation property -- but only on the first $1.1 million that you borrow for both your primary and secondary homes.

Internal Revenue Service rules get even more complicated if you rent your ski property out for more than 14 days per year, so consider consulting with a good tax adviser before buying.

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