The memories tied up in your summer house may make it hard for you to decide whether to sell or keep the home. We may know that it will benefit us to sell the vacation home, especially if it is causing financial burdens or if no one visits it anymore. Other times, we don’t want to give up the house because of all the memories and good times spent there. If you find yourself stuck trying to decide if you should sell your summer home or keep it, this article should help you make your decision. In this brief guide, we will go over how to sell your summer home in today’s market and who you can reach out to for additional options.
Should I keep my summer home?
Your summer home is most likely filled with great memories with your friends and family. It may be hard to detach from the home emotionally, but it is imperative that you do so you can decide if it is feasible to keep your vacation house. You need to consider many different factors before you choose to keep or sell your home.
For example, has the location of your primary residence changed? Some people move away from their vacation home and love coming back, but they find that the trips to the summer home are becoming too infrequent and costly.
Another major factor you need to take into consideration is the additional mortgage. If there is still a mortgage on the vacation house, make sure that the monthly payment is not becoming too much of a burden. If it is a burden, can you refinance or restructure the loan? Even if you can restructure or refinance the loan, think about the terms and conditions of your new loan. When you refinance or restructure, you may have lower monthly payments, but your repayment time may add years to the life of your loan.
Once you weigh out the pros and cons of keeping your vacation home, you will need to decide to sell the house or keep it.
How to know if its right to sell a house
Selling your home vacation home is personal. Not only do you need to think about the market conditions, but you also need to consider your lifestyle needs and the needs of the house.
Lifestyle demands a move
Many different lifestyle changes, such as having more children, can impact the need to sell your vacation home. For example, maybe you had a vacation home before you planned for children, and you now realize that you can no longer afford the vacation home mortgage. Perhaps you’ve already had the summer home for years, but all of your children have moved on and no longer visit the house.
Home improvements needed
If you have had the vacation home for years and there are significant repairs you need to complete, you may want to sell your home. If you sell your home traditionally, you may not receive offers from buyers using conventional or federally backed loans. There may be a few real estate investors that will want to make an offer on your home. If you are unable to sell your home in the condition it is in; you can always reach out to companies that accept homes regardless of the condition it is in.
If you cannot afford the carrying costs associated with owning the vacation home, it may be a good idea to sell the house. Even if you already paid off the mortgage for the vacation house, you still have to pay for homeowners insurance, property taxes, and homeowner associations dues. If you no longer use the vacation home and don’t want to keep paying the carrying costs, you may want to sell the house.
How to sell your home traditionally
As mentioned earlier in this article, there are different ways you can sell your home. You have the option to sell your home traditionally or through a company that purchases your home with cash. If you decide to sell your home on the market traditionally, there are some steps you will need to follow.
Reach out to a real estate agent
Not only will you want to reach out to a reputable real estate agent, but you will also want to make sure they are knowledgeable of your market area. You can ask friends and family for a reputable agent, or you can conduct a quick online search to find the best agent near you. Once you locate an agent, you will want to ask them about their commission fees and experience.
Set a timeline
Selling your home on the market can take months. A home sells within two to four months, depending on the market conditions. You will want to be realistic about the timeline to sell your home. Of course, your knowledgeable agent should help prepare you for how long it will take to sell the house.
Before you have your agent list your home for sale, you will want to declutter the house. You may have a lot of potential buyers coming to check out your home, so make sure that the house is in pristine condition before you list it.
Things to do before you list the house:
- Deep clean
- Schedule any repairs if needed
- Stage the house
- Have a professional take photos of the house
If you would like, it is best to schedule a pre-sale inspection. This inspection will let you know what repairs you need to take care of before someone buys your home. Most homebuyers have their own inspectors come to check out the house before they put in their offers. Having a pre-sale inspection gives you a heads-up of any repairs your potential buyers may bring up when their inspector comes in.
List the house
Once the house looks good to go, you will want to have your agent list the home on the market for you. You will want to make sure the price you list for the house is realistic. Of course, it is easy to claim that your home costs a lot because of the work and customization you put into your home. Keep in mind that your style may not match what other buyers like, so they will most likely want to renovate the space. To best price your home, you will want to look at your local market condition. Your real estate agent will tell you the best price for your home based on the other homes sold in your area.
Ideally, your home will receive offers after a view buyers have come to check out the property. Once you receive these offers, you can either accept the offer as is, reject the offer, or make a counteroffer. When reviewing the offer, you will want to look at it in its entirety. How is the buyer paying for the home? Do they have any seller concessions?
Aspects of the offer to review:
- Type of financing (FHA, VA, Conventional, etc.)
- Proposed closing date
- Down payment
You may be tempted to accept the highest offer if you receive multiple offers, but that may not be the best way to go. You will want to consider the type of financing they use. For example, if they wish to purchase the house with lender financing, they will need an appraisal. If there are any shortfalls between the appraised value and the purchase price, the deal could fall apart.
Sellers costs to consider
It is crucial to keep in mind that there are closing costs on the seller and homebuyer’s side. You also need to pay the agent’s commission fees, typically 5% to 6% of the home’s sale price.
Other costs paid by the seller:
- Recording fees
- Outstanding liens
- Government transfer tax
Additionally, if the buyer negotiated any credits for repairs or closing costs, you will need to pay for these as well. Your agent will provide you with the complete list of fees you will be responsible for at closing.
Gather paperwork to close
Selling your home is not as easy as just accepting an offer and receiving payment. As mentioned earlier, if your homebuyer uses lender financing, your home will go through an appraisal and inspection process. Once everything looks good, you will need to fill out paperwork to ensure the sale completes.
Documents needed to close on your home sale:
- Tax records
- Mortgage documents
- Homeowners insurance
- Home inspection report (if applicable)
- Property survey
- Your original purchase contract
This list is not an inclusive list of all documents you will need to gather. Make sure that you review with your real estate agent to ensure you have all the proper documentation. If you have a real estate attorney, they will make sure to check all the documents before you close on the sale.
Selling your house for cash
If you don’t want to go through with selling your vacation home the traditional way, you can sell your home for an all-cash offer. Companies like Smith Liquidations offer you the opportunity to sell your house for cash.
Cash sale process
If you decide to sell your home for an all-cash offer, there is not much you need to do on your end. You will need to input your contact information and your home information. Smiths Liquidations will waste no time trying to create an excellent offer for your home.
Review your offer
Once they complete their review of your property, they will then reach out to you and send you an all-cash offer of your home. Unlike selling your home traditionally or to other types of companies that buy your house for cash, Smiths Liquidation does not have any fees. You will not need to pay any closing costs, administrative fees, or real estate agent commission fees. Keep in mind that if there are significant repairs that your home needs, they will be deducted from your net proceeds. Even if you like the offer you receive, there is no obligation to take it.
If you agree with the amount offered, you will let them know, and they will draft up a contract. You will receive a payment within two weeks, not months. You have the opportunity to choose your closing day, and you do not need to have repairs completed before you move out. They will handle the repairs on your behalf.
Is my vacation home eligible?
Yes! Regardless of the state of your vacation home, you can sell your home to them. Does your vacation home need upgrades? Are there repairs that need tending to? Haven’t been in the house in years, and you are unsure what needs updating? No worries! Once they review your home and offer you an all-cash offer, all you have to do is decide if you want to take the offer or not.
Submit your information today!
Selling your home on the market comes with many paperwork and fees. You will need to consider the seller’s fees, buyer’s fees, and real estate commission fees. Not only will you need to worry about the cost of selling your home, but you also need to make sure your home is show-ready. Instead of waiting months for your home to sell, submit your information for a free, no-obligation, all-cash offer on your home. Contact us now if you are ready to find out how much you can receive in cash for your home! Our team is prepared to handle any questions or concerns about the purchase process.