A vacation home always sounds like a good idea, but in many cases a second property is more than most homeowners can handle. One of the critical decisions of any recreational property owner is deciding when to sell. There are many factors that would suggest a sale is appropriate. The following factors could justify a decision to sell, whether you are using your vacation home for personal use only or as a rental investment property:
In short, monitor the market and your investment regularly. Anticipate problems and act accordingly.
Once you have made the decision to sell, there are other issues you have to deal with. These would include the following:
The optimal rule here is to sell when everyone else is buying, although this is not always possible. The best time for selling a recreational property is generally in the spring or summer.
The property has to be priced right for the market—without emotion and based on objective assessment or value. It is normal to determine the ideal price and then add another 5% to 10% or more for negotiating margin, depending on the market at the time, and the type of property.
Prepare all necessary documents for the realtor or purchaser. For example, if a mortgage is assumable without qualification and has an attractive interest rate, get a copy of the mortgage. If you have a vacation revenue property, get all the financial and other records for a purchaser to review.
If you have an assumable mortgage or you are prepared to take a first or second mortgage back in terms of vendor financing, clarify the terms.
Depending on the nature of your property, obtain advice from your tax accountant and lawyer with regard to pricing, apportioning value, and timing.
Make certain your real estate agent is experienced in selling the type of recreational real estate in your specific geographic area. Of course, you can try to sell the property yourself through various home-selling websites. There are pros and cons of this approach to consider.
Check out similar properties for sale and the positive or negative features about your own property relative to others you have reviewed.
Have your agent advertise and promote the property as extensively as possible. This would usually be done through a Multiple Listing Service (MLS) website, the agent’s own website and contact list, an open house for public viewing, an open house for realtor viewing, newspaper advertising, and lawn signage. There are many other types of marketing techniques. Ask the agent to confirm in writing, before you commit yourself, what their marketing plan will be for your property.
Determine what your best deal and bottom-line position will be and why. The purchaser will attempt to negotiate the best deal, so be prepared. Although the points on making the offer are designed from the purchaser’s perspective, they will give you a good idea on which matters to counter-offer.
If your vacation home is more than you can handle, White Sand Property Solutions can help. We pay cash and close quickly. Contact us today for to find out how we can help.