Planning to Sell a Vacation Home? Tips for a Stress-Free Selling Experience

Vacation home owners who want to sell may find that this is the perfect time to consider doing so, particularly if their vacation home is located in a popular vacation destination area. According to the National Association of Realtors® (NAR), low inventories of vacation homes have pushed prices to the highest level seen in a decade. While these prices will likely push some buyers out of the market on the lower end of the scale, sellers should still be able to benefit from the lack of competition from other listings at the higher levels. But it is important to remember that selling a vacation home successfully requires an approach that is far different than the one used to sell the standard owner-occupied residential home.

Determine the tax implications for the sale

One of the most important things vacation home owners can do to prepare themselves for a successful sale is to make sure they know how capital gains tax laws will apply to their situation. Current tax laws do not afford secondary residences with the same exemptions that apply to a primary residence. Because of this, vacation home sale proceeds are currently considered to be capital gains for the owner, and taxed accordingly, minus verified costs, including the original purchase price, closing costs, and some types of repairs and renovations.

Determine the most likely buyer for the home

The next step in a successful vacation home sale is to decide who the most likely buyer is for the home and then determine a strategy to target them. In addition to the typical vacation home buyer, consider whether the home might also appeal to incoming retirees, local homeowners who want to downsize, or investors looking for properties suitable for seasonal vacation rentals. Determining the most likely buyer and then working to craft a marketing approach that will appeal to that specific demographic can shorten market time and result in better offers.

Determine the best time to put the home on the market

Unlike residential areas where homeowners reside year round, vacation home locations typically see significant activity trends and patterns each year due to weather, seasonal attractions, or other local features. Because of this, vacation home sellers who make sure their home is ready to be marketed during high activity periods will be more apt to see maximum buyer interest in their Upper Mount Royal home.

To take advantage of this increased activity, vacation home sellers should make sure that any repairs and maintenance needed has been completed and that the home is clean, vacant, and ready to welcome prospective buyers. Homes that have been unoccupied for long periods may also require significant amounts of exterior maintenance, lawn care and landscaping work to clear away leaves, branches, and tall grass.

Determine whether your schedule allows time for effective marketing

Marketing a vacation home successfully is much more difficult for sellers that live hours away where it is located. Sellers who cannot realistically be available to field calls or show the home quickly to accommodate potential buyers who are in the area on vacation should never try a by-owner sale.

Instead, choose a local real estate professional in the area where the vacation home is located who has a record of verifiable success in listing and selling vacation homes. In addition to handling all the duties of marketing and showing the home, this type of agent can provide owners with a list of reputable local lawn care, maintenance, and repair contractors to make sure the home is kept in excellent condition.