Selling A Vacation Home? What You Need to Know
Selling a vacation home is different from selling a primary residence. Many homeowners who are selling their first vacation property are unaware of what to expect. Knowing the differences can help vacation homeowners with the process.
Stage the Property
Vacation homes need to be staged to look as appealing as possible to home buyers. Home buyers looking for a vacation property are typically in search of convenience and beauty.
- Trim back shrubs or trees that block beautiful views.
- Provide outdoor seating to help home buyers envision themselves relaxing outside.
- Clear away clutter inside to emphasize that the property is clean and well maintained.
- Open curtains inside to make the interior look light and spacious.
- Clean the property thoroughly.
Home staging can boost the sale price of the house, thus boosting profits. Homeowners who aren't sure what else needs to be done to stage their property must work with their real estate agent through the process.
Consider Including the Furniture
Denver new homeowners who plan to sell their vacation property and not buy another may find themselves stuck with a lot of extra furniture when the process is finished. However, many vacation home buyers are in need of furniture and will purchase the furniture already in the home for a fee.
Home sellers who don't want to keep their furniture when the sale is final may be able to work with their real estate agent to include the furniture in the sale of the home.
Understand the Taxes
When a homeowner sells their primary residence, they can make profit on the sale of their home up to $250,000 (or $500,000 if they're married) without paying taxes on the profits. Anyone who has sold their primary residence in the past must be aware that selling a vacation home is very different. The money made selling a vacation home will be taxed.
Taxes on profits made selling a home are known as capital gains taxes. Capital gains taxes requires homeowners to pay about 20% of the profits in federal tax, and some state taxes may apply as well. Homeowners can reduce their profit (and thus reduce their tax liability) by subtracting expenses related to selling and maintaining the home.
In addition, homeowners who have lived in their vacation home for a length of time will not have to pay taxes on those years that they were living there. Working with a tax professional can help ensure that the math is done properly and the taxes are paid in full.
Work With Professionals to Maintain the House
Often, people who sell their vacation home do so remotely, from where ever their primary residence is located. This makes selling a vacation home more logistically challenging, unless the homeowner works with professionals to get the job done.
Hiring someone to maintain the property can help keep the house staged for buyers. Working with a real estate professional can help ensure that someone will be on hand to negotiate and manage the administrative aspects of the home sale. This makes selling a vacation home significantly easier.
Contact Your Real Estate Professional Today
If you own a vacation home that you're thinking about selling, contact an experienced real estate professional today. Your real estate professional can help you coordinate the sale even if you're not in the area.