How to find the perfect vacation home in Laguna Beach

Laguna Beach’s unbeatable location and stunning landscapes make it one of Southern California’s premier locations for a luxury vacation home. It can be a quiet hillside retreat overlooking the neighborhood and the ocean beyond, a private estate with beach access, or an upmarket property located close to the heart of Laguna Beach’s arts community.

This guide will walk you through everything you need to know about selecting the ideal Laguna Beach vacation property, from choosing the right neighborhood to understanding local market trends.

Step 1: Define your vacation home needs

Before diving into the Laguna Beach real estate market, take time to clearly outline your vision for your vacation property. Taking this step will guide your entire homebuying journey and help you make decisions that align with your long-term goals.

• The primary purpose of your vacation home: Are you seeking a private retreat for personal use, an investment property for rental income, or perhaps a combination of both? Your intended use will guide every decision you make, from the property’s location and layout to its amenities and aesthetics.
   
  • Your Laguna Beach house into a personal retreat: Prioritize privacy, seclusion, and features that enhance your lifestyle and comfort. The number of bedrooms and bathrooms, for instance, should comfortably accommodate your family and anticipated guests.

    Consider how you’ll use the space – perhaps you envision expansive indoor/outdoor living areas for entertaining, or maybe you prioritize ocean views and direct beach access. Take note too that private parking is a premium feature worth considering in Laguna Beach, as is adequate storage for beach equipment and recreational gear.

  • As a rental investment: If rental income factors into your plans, your property considerations should expand to include features that appeal to potential renters. Location becomes even more critical, as does the inclusion of amenities that command premium rental rates.

    Space efficiency and durability also take on greater importance, as well as other practical aspects like lock-off capabilities for owner storage and property management requirements.

• Future-proofing: Looking toward the future also plays a vital role in your decision-making process. Consider whether this property might eventually become your retirement home or if you plan to pass it down to family members. Think about your anticipated usage patterns as well, such as how often you will personally visit the property, and during which seasons. These factors can significantly impact your choice of location and property features.

Step 2: Set a realistic budget

Owning a home in Laguna Beach represents more than a purchase—it’s a lifestyle investment with significant financial considerations. Therefore, it is essential that you establish a clear budget especially given the premium nature of the market. Not only will this set your expectations for what is achievable, but also help you prioritize features that align with your lifestyle and investment goals.

The market at the moment

Laguna Beach stands as one of California’s most expensive coastal areas, with property values going up or down depending on a property’s proximity to the ocean, its size and condition, and the specific neighborhood it’s located in.

Single-family homes in the area, for instance, typically start at $1.5 million and can reach upwards of $45 million for premium properties. For those interested in condominiums, prices begin around $800,000, with luxury units in prime locations commanding prices over $3 million. As of November of 2024, the median listing price in Laguna Beach is approximately $4 million and a median listing price per square foot of around $1,800. Both market indicators are trending upward.

Costs to factor

The initial costs of purchasing a Laguna Beach property go beyond the sticker price. Down payments for vacation homes typically range from 20% to 30%. Meanwhile, closing costs can add another 2% to 5% of the purchase price. Inspection and appraisal fees can total up to $1,500.

Here are other expenses to factor into your budgeting:

• Mortgage payments
• Property taxes
• Homeowners insurance
• HOA fees, depending on your area
• Maintenance costs
• Property management fees (for rentals)

Step 3: Choose the right neighborhood

Laguna Beach’s distinct neighborhoods each offer their own unique character and advantages, making neighborhood selection an important part in your home-buying journey. Understanding the characteristics and offerings of each area will help you find the perfect match for your lifestyle and investment goals.

• North Laguna Beach presents a quieter, more residential atmosphere that appeals to those seeking a peaceful retreat. This area benefits from its proximity to Crystal Cove State Park and features several private, gated communities such as Irvine Cove, Emerald Bay, and Smithcliffs. This part of Laguna Beach also happens to offer some of the most spectacular beachfront and ocean view properties in Southern California, making it particularly attractive for those planning to use their vacation home as a genuine escape.
   
• Central Laguna Beach pulses with the heart of the city’s activity and offers the quintessential beach town experience. Here, you will find yourself within walking distance of the town’s best shops and restaurants, with Main Beach and Heisler Park just steps away. The area showcases a lovely blend of historic cottages and luxury properties, while the vibrant arts scene and gallery district provide constant cultural stimulation. This neighborhood ideal suits buyers who want to be in the middle of Laguna’s dynamic energy and do not mind the increased tourist activity during peak seasons.
   
• South Laguna Beach offers a more secluded feeling while maintaining easy access to some of the area’s most spectacular beaches. This part of Laguna Beach is home to notable communities like Blue Lagoon and Victoria Beach, both of which feature luxury beachfront properties. The quiet residential streets create an exclusive atmosphere, while the premium property values tend to hold steady even in fluctuating markets. These areas particularly appeal to buyers seeking long-term value and a more exclusive beach living experience.
   

Step 4: Consider lifestyle amenities

Lifestyle amenities are a key element in creating a luxurious vacation experience and adding long-term value to your Laguna Beach house. The right amenities can turn your property into a true retreat and cater to every aspect of high-end living.

On-site features and amenities

• Outdoor living spaces are highly desirable especially if you want to take advantage of Laguna Beach’s perfect weather. These can include outdoor kitchen and dining areas to enjoy al fresco cooking and dining, sparkling swimming pools, and gathering spots where you and your guests can bond under a clear Laguna Beach sky.
   
• Health and wellness features such as spa-like bathrooms, a private gym or yoga studio, deep soaking tubs, and refreshing steam showers can elevate your vacation home into a sanctuary.
   
• Advanced home automation enables you to set the mood with controlled lighting, secure your vacation home effortlessly, and maintain the perfect temperature with a single tap or push of a button. Whichever smart home features you choose, these integrated technologies can make life simpler and enhance the entire vacation home experience.
   

Proximity to Laguna Beach’s best offerings

• Beach activities form the cornerstone of Laguna Beach living, with each area offering unique opportunities for ocean enjoyment. The city’s numerous coves and beaches present varying conditions for swimming and surfing, while protected areas provide excellent snorkeling and diving opportunities.

  Many beaches feature volleyball courts and fire rings for evening gatherings, creating perfect settings for family activities and social events. The extensive tide pools along the coastline offer fascinating marine life exploration opportunities, while calm morning waters provide ideal conditions for stand-up paddleboarding.

• Cultural attractions also abound in Laguna Beach, given its longstanding reputation as an artists’ colony. The renowned Festival of Arts and Pageant of the Masters draws visitors from around the world, while the monthly First Thursdays Art Walk showcases the city’s vibrant gallery scene. The Laguna Art Museum and Laguna Playhouse provide year-round cultural programming, and numerous artists’ studios welcome visitors. These cultural assets not only enrich the community but also contribute to property values and rental appeal.
   
• Outdoor recreation extends beyond the beach, with the Laguna Coast Wilderness Park offering extensive hiking trails and mountain biking routes. Public tennis courts and sports facilities cater to active residents, while nearby golf courses provide additional recreational options. The winter months bring excellent whale-watching opportunities, and local operators offer kayaking tours that explore the coastline’s hidden coves. These diverse activities ensure the year-round enjoyment of your vacation property.
   

Step 5: Work with a local real estate agent

Given how competitive Laguna Beach’s real estate market is, partnering with a knowledgeable local agent is not only helpful—it is essential. Here are several values to look for when choosing a Realtor:

• Community expertise and access: A seasoned Laguna Beach agent does more than guide you through listings; they offer intimate knowledge of neighborhood dynamics and exclusive access to off-market properties. These “hidden gems” and early-access opportunities are crucial, especially in a market where connections often carry as much weight as competitive offers.
   



• Understanding of local regulations & coastal considerations: Owning coastal properties in Laguna Beach requires an understanding of unique regulations, such as view preservation ordinances, beach access rights, and restrictions on future development. Find an agent that can help you navigate these intricacies. Doing so will help you ensure your investment is aligned with your goals and enable you to enjoy your property for a long time.
   
• A strong professional network: Your agent’s network is equally valuable. Seek someone who is established in the local real estate scene– they will have trusted property inspectors, real estate attorneys, insurance specialists, and other professionals on their speed dial.
   
• Expertise on Laguna Beach luxury and vacation houses: Agents who specialize in high-end vacation properties bring insights beyond standard comparables. They highlight the unique value each property offers within the broader Laguna Beach market. Furthermore, their strong negotiation skills and reputation can open doors to off-market listings and even early insights on properties before they hit the market.
   

When choosing an agent from your shortlist, take time to review their recent sales history, especially vacation home transactions in Laguna Beach. Look for client testimonials that speak to their expertise with second-home buyers as well; it provides insight into their ability to handle the specific needs and goals of this type of purchase.

As with big-ticket investments, communication is crucial, so consider whether their style and availability align with your expectations. A responsive agent who keeps you informed and is available when needed can make the buying process smooth and stress-free.

KEY PITFALLS TO AVOID WHEN BUYING A LAGUNA BEACH VACATION HOUSE

In many real estate transactions, knowing what to avoid can be just as important as knowing what to do. Here is a list of common pitfalls to steer clear of to help you make a sound investment and enjoy your property to the fullest.

1. Avoid making emotional decisions. The allure of ocean views and picturesque properties can easily lead buyers to rush into a purchase. It’s essential to stay disciplined about must-haves and deal-breakers, as emotional decisions can lead to regret when practical considerations like property condition, accessibility, and resale potential are overlooked.
    
2. Study local property regulations. Many new buyers assume that they have the freedom to make any renovations or modifications they desire, but Laguna Beach properties often come with strict regulations and zoning laws.

   These ordinances can affect everything from remodeling to property usage, and may even restrict short-term rentals in certain areas. Historical preservation laws may also limit changes on properties deemed to have architectural or cultural significance.

   A comprehensive understanding of these rules can prevent future frustration, making it important to research all potential limitations before finalizing a purchase.

3. Account for hidden costs. Whether you are purchasing a property by the coast or further inland, always be prepared for the hidden costs. These include maintenance and insurance expenses, as well as taxes and other fees you might incur depending on the services you avail. If you are opening a vacation rental, you will have to include cleaning, regular fixes, and property management into your overall accounting.
    
4. Go beyond online research. While online listings and property data provide a useful starting point, they often lack important context, such as a property’s specific condition, location nuances, and neighborhood characteristics. Working with a local real estate expert familiar with Laguna Beach’s coastal market can offer invaluable insights that go beyond what is available online, helping you make more informed decisions.
    
5. Consider environmental and seasonal factors. The coastal climate has specific effects on daily life and property maintenance, as properties in certain hillside areas may be more vulnerable to erosion from heavy rain. Seasonal fluctuations in tourism can also impact the overall lifestyle and rental income potential if short-term rentals are part of your investment plan.
    

DISCOVER THE PERFECT LUXURY HOME WITH SHAUNA AND LEITA COVINGTON

If you’re planning to invest in a Laguna Beach house, partnering with seasoned professionals like Shauna and Leita Covington can make all the difference.

Shauna and Leita not only excel at identifying the best real estate deals for their clients– they are also invaluable resources for optimizing your experience in Laguna Beach. From navigating local regulations to sharing insights on the best restaurants and recreational spots in town, they make sure you feel at home in this beautiful coastal community.

Call them today at 949.395.3037 or email them to find your ideal vacation house in Laguna Beach.