Owning a vacation home can be an incredible opportunity, but sometimes certain circumstances dictate the need to sell the property. No matter what the circumstances may be, selling a vacation home, even in areas like Goodlettsville, is like many other property sales despite the additional considerations that should be kept in mind.
What Makes It Special
Selling a vacation home in many ways is like selling one's primary residence, except that there are a few special things to keep in mind for a successful sale. A general rule of thumb when dealing with vacation property is that the more information one can provide to potential buyers, the better.
Oftentimes people like to rent out their home when they aren't using it, and while this works out great for extra income, it can also have the potential to influence the sale. Make sure to fully disclose all rental history to potential buyers so they can make an informed decision. Knowing that four different families lived in the home over the last two years might sway their purchase one way or another, so it's something to keep in mind. In cases where multiple individuals have ownership of the same vacation home, additional factors must be taken into consideration.
In most home sales, an appraisal and inspection are standard so that everyone is on a level playing field. Taking the proactive steps to get these items completed before the home goes on the market shows buyers that you're serious about the sale and can provide enticing information right off the bat.
A Home Is Still A Home
While a vacation home does have its nuances, in many ways it can and should be treated like any other home that's going up for sale. While selling a home requires a lot of patience and good timing, there are some items that homeowners can consider to help speed up the process.
Curb appeal for a vacation home is critical, as this is the first impression many will have for a purchase that's more than likely discretionary. Take time to spruce up any landscaping, touch up exterior paint, or even consider small touches like a new mailbox or new numbers to hang on the house. Every little improvement can go a long way toward creating a favorable first look.
When selling a vacation home, it's important to remember that, when selling a home that isn't a primary residence, home sellers can't claim an exemption on the capital gains tax from the profits. Be prepared in advance to pay taxes if the home sells for a significant profit compared to the price paid for it.
Tax Considerations When Selling a Secondary Residence
When selling a secondary residence, there could be tax consequences. If the property depreciated in value over the length of ownership and the home sells for less money than it was purchase for, there are no capital gains. On the other hand, if the home sells for much more than the original price, providing the seller with a profit, there is not an exemption on the capital gains and taxes must be paid. The percentage rate of capital gains tax paid on a secondary property can be up to 15% of the profits. The percentage will depend on what state the home is in and the current amount designated for the tax year. The numbers may change slightly, but an individual selling a second home will pay some form of taxes on any profit that is made on the sale. It may be useful to keep the home, or transfer the home to a trust instead.
Keeping The Stress Low
A vacation home is supposed to be a getaway, so selling it shouldn't have to feel like a stressful burden. As long as some basic real estate strategies are implemented and you are completely upfront with any information a buyer wants to know, the sale should happen pretty smoothly.
What's more, selling a vacation home could open up other opportunities for future property purchases or even upgrades to another home in your portfolio. While it might be sad to say goodbye to one home, it could bring about other great possibilities.
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