3 Tips for Selling a Vacation Home

Selling a vacation home is not unlike any other home-selling process. By working with skilled professionals and utilizing accepted best practices, sellers can make a sale as quickly as possible at an acceptable price. The following strategies can help vacation home sellers make the sale process easier overall.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Focus on What Makes the Vacation Home Special

Vacation homes are frequently chosen for their proximity to local attractions, scenic views, or luxury-style amenities. When ready to list and market the home, the seller should ensure these features are front and center. Add the distance to the housing description, and clarify any handouts.

Sometimes, vacation homes double as rental properties during the seasons when the homeowners are not there. Records of past rentals that show the amount of rental income possible can be a strong draw. Keep records of the expenses involved in ownership and renting, as home buyers considering renting will want to know the revenue potential.

Consider Carefully Chosen Vacation Home Upgrades

Plenty of low-cost improvements can increase a home sale price without taking up too much time or breaking the bank. A fresh coat of paint in the kitchen can be applied on a weekend to add appeal to everyone’s favorite room in the house. Pressure washing sidewalks and driveways or investing in some landscaping is another lower-budget way to increase curb appeal. The better the home looks from the road, the more buyers will imagine themselves in it.

Other improvements can include revamping outdoor seating areas and fixing features such as gazebos or docks. Outdoor lighting can be inexpensively installed to make the area shine in listing photos.

Decluttering is always good for a sale. While vacation homes often do not store the same items in them as first homes, putting some stuff in storage can still help. Clear closets of out-of-season decor and accessories, sporting goods, and worn or no longer useful items like old life vests or outdoor toys. If the furniture is going with the house, make sure it’s in good shape. Add that as an option to the listing information.

Understand Taxes When Selling a Vacation Home

Taxes are one area where the sale of a vacation home differs from that of a primary home. Secondary or vacation homes are considered investments. When a second home is sold, the sellers typically owe capital gains taxes on any profits. When a home is owned for less than a year, gains are taxed at the seller’s ordinary income tax rate. However, homes owned longer than a year qualify for the long-term capital gains rate, which can lend significant tax savings. Then there’s the 1031 exchange option. Talking with financial advisors can help sellers reduce their tax obligations and keep more of their proceeds in hand.

Vacation homes have factors that make them different from primary homes. However, selling a second home can be treated like any other home sale. By focusing on the benefits that make the home desirable and working with professionals familiar with the local area, sellers can find buyers who prize these getaways as much as they do.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Updated March 2024