With the housing market being where it is right now, now really isn’t the best time to sell a vacation home. At the same time, if you are in a difficult financial situation, you may be left with no other choice. So, if you are in desperate need to sell your vacation home despite the general lack of interest in these properties, there are a few things you can do to help increase your chances of getting your home sold or even to get past these tough times an hang onto the home if that is what you really want.
Recognize Your Situation
Before you put your vacation home on the market, it is important for you to understand where you stand within today’s market. According to a report released by the National Association of Realtors in 2008, vacation home sales dropped by about 31% last year. In addition to experiencing a drop in the volume of sales, the median price of these homes dropped as well. In fact, the median price of these homes dropped from about $195,000 to $45,000. Keeping these things in mind, you will be better prepared to face the road before you.
Assess Your Finances
The next step is to assess your personal financial situation. Frankly, if you can afford to continue making payments on your vacation home, it will probably be a better idea for you to hang onto the property rather than to try to sell it in today’s financial climate. If you are in a situation where selling the property is inevitable, you will be forced to make some difficult decisions regarding the selling price of your home. More than likely, you will have to sell the home at a price that is well below what you paid for it. In addition, you may not be able to get enough for the property to cover full repayment of your loan. In this case, you might need to pursue a short sale or a loan modification to help get out from under your loan.
Consider Other Options
If possible, you might want to consider other options rather than selling the house. For example, you might be able to rent the property out until its value recovers. Even if you aren’t able to cover the full mortgage payment amount by renting out the property, you may be able to get enough funds from your renter to make the mortgage payment more manageable.
Improving Your Chances of Making a Sale
If you have decided that selling the home is your only option and a short sell or loan modification is out of the question, you might need to do a few things to help sweeten the deal a little. For example, by offering to cover the closing costs or by including the furnishings with the purchase, you may be able to attract more buyers.
Depending upon where the home is located, you might also want to consider repositioning the property. By making a few modifications, such as installing better appliances for year-round use or by adding more closet space, you can make the property more appealing to those who are looking for a permanent residence rather than a vacation home.
Jim Olenbus is a Texas real estate broker that has been actively selling West Austin real estate since 1997. He is one of the bloggers for the Austin TX real estate blog and he manages a team of agents at Cantera Real Estate in Austin, Texas.
