Owners of secondary homes may enjoy many pleasant months vacationing in a home away from home, profiting from rental money in popular tourist locations, or otherwise enjoying the benefits of their investment property. But when the time comes to sell a home—whether it's for financial, personal, or time-related reasons—owners of secondary homes may realize that selling their vacation properties has a set of challenges not involved in the sale of a primary residence.
Selling a vacation home has a lot in common with regular home sales, but there are a few differences. This guide shows sellers what they should keep in mind during the selling process.
Start at the Right Time
The best way to secure a good sale price for a vacation home is to start the sale when buyers are looking. For any home, experts say that the best time to list the property comes in the late spring or early summer. Home buyers are looking to get the purchase taken care of by the end of the summer. For a vacation home, buyers may be hoping to use it during the summer. In this case, sellers may want to have the space ready to go by spring. That way, buyers looking for the perfect summer getaway have the most opportunity to catch a glimpse.
Think Like a Buyer
Grabbing the perfect sale price calls for an intuitive understanding of what buyers want in a vacation home. Of course, sellers may be selling a vacation home to someone who wants to buy it as a primary residence. People looking for a second or third property are not going to make the same kinds of decisions that they would for a primary residence. If the property is located in a place that is geared toward holidays and summer trips, sellers may want to focus on the property's ease of use and how quickly someone can take ownership.
Make Improvements Buyers Want
Whether buyers are looking for a first, second, or tenth home, they have a few things that they really want. Comfort is a big plus, as well as convenience. The property should be in excellent shape, and generally ready for buyers to take occupancy. Buyers want plenty of storage and places to put things, especially if the home is on the smaller side. If sellers are planning to sell the home specifically as a vacation home, they should keep budget in mind for improvements. Buyers who already have a mortgage on one home may not have a lot of money to pay for luxury upgrades.
Stage for a Quick Sale
Like most other homes, the way sellers stage a vacation home could make a significant difference in its final sale price. Buyers look for a sparkling clean home that is uncluttered. The smaller the space, the more sellers should emphasize lighting and a feeling of spaciousness in each room. Sellers may not need to spend a lot of money, but some investment may set the home sale on the right foot.
Keep Taxes in Mind
The biggest difference between selling a primary residence and a vacation home is taxation. When sellers close the sale on a vacation home, they may be subject to capital gains taxes, which refers to the increase in value on the asset from the time that the seller bought it. The sale may be additionally complicated The rules may be even more complicated if the property is outside of Canada or if it was ever used as an income property. Sellers may want to consult an accountant specializing in taxation to determine what their tax obligations could be.
The vacation home selling process may be a bit different, but a lot of the fundamentals are the same. With these tips, Suntree home sellers can prepare to sell a vacation home with less hassle and a better outcome.