Selling any home is a lot of work and planning no matter what type of house it is or where it is. SD Property Shop has put together some helpful hints on how to sell your San Diego beach house for a high value.
Representation — How to Select an Agent
Find an agent that has a lot of experience with beach front properties, especially in your region or neighborhood. Ask them how many they have sold recently and what percent we sold at a price higher than the listing price. Ask them to provide you with proof of their sales with detailed sale info. Discuss marketing plans with your agent prospects and what recommendations they have for your home such as repairs.
Asking your friends for agent recommendations is a given. But walk up and down the street and see if any of your neighbor beach homes we purchased recently and see what you can find out and who was the agent. Call the local board of Realtors for any consumer complaints and select the most impressive agent from your interview pool.
Repairs & Cosmetic Sprucing
Make any major repairs to your home BEFORE signing the listing agreement. Ask friends and neighbors to do their own walk through and ask them to be nosey and particular so you can identify all the repairs you will need. Go on AngiesList.com to finad hire good and qualified repair professionals as well as professional window cleaners, interior and exterior painters, maids, and landscapers to enhance your home cosmetically.
Contracts, Disclosures, and Lawsuits
Many beachfront areas in California lie on changing shorelines due to erosion, earthquakes, and hurricanes. If your beach house has a risk, you’ll want to note that information on the state-required home disclosures so you do not get sued post-sale. You’ll need to sign two major contact agreements and several property disclosures to sell your beach house. Spend some time researching information from your state’s geological survey to see if your house it at risk.
Stage Your Home For Prospective Buyers
This means removing the amount of clutter in your home so it looks bigger and exposes the great parts and rooms of the home. Remove extra furniture and unnecessary wall decorations. You want the buyers to be able to imagine how their belongings fit and look in the home. And if they like what they “see”, they’ll probably make an offer. An added benefit of staging your home is that it creates less to pack up when it sells.
Season and Promotions
Summer is the season you want to target to sell your beach house for top dollar. Promote your home better than other beachfront sellers by hiring professional photographers to showcase all the aspects of the house, inside and out. Make sure to include the beach in as many of the photos as possible because that’s your main selling point. Makeup promotional fliers, without featuring the price because it encourages a prospective buyer to call the agent who will then in turn invite them to come look at your awesome beach home.
Know Your Tax Liability For When Your Home Sells
Is your beach home is a second home or an investment property? If so, you could be subject to much higher taxes than a primary home. You can avoid or defer some or all of your tax liability with some advanced planning such as calculating your potential gain or loss. The IRS doesn’t calculate losses by subtracting your purchase price from your sale price. You get to increase your purchase price by adding in the non-loan related closing costs you paid when you bought the property. You can also add in the cost of any capital improvements you made to the home. Once you’ve figured out your total cost, you subtract that from your net selling price after paying the commissions, fees and closing costs at the sale. By projecting your taxable gain or loss, you can determine what tax strategy to use.
See Tax Planning and the Sale of a Beach House by Steve Lander with Demand Media to find out a lot more about tax liability with selling at a loss, selling your primary home, selling your second, or selling an investment property.
Know Your Market Direction
Is you home value going to increase in a couple years or decrease? If it’s going to decrease you will want to get it listed and sold as quickly as possible. You also may be better off renting your house if you anticipate you won’t get the price you will be asking. Beachfront homes are a very inelastic fee model meaning you can almost list it for anything and someone will rent it. On the other hand, if you aren’t in any particular rush to sell and market predictions say the housing market is on the upswing, it may be best to wait or at least take your time getting it ready for sale. Knowing your market direction is hard to predict but speak with lots of different types of professionals in the real estate buying and selling market to find out what the dominant belief is. HINT: California beach home values hold their value better and increase faster than almost anywhere in the country.
SD Property Shop Contact Info
Courtney Cameron, Realtor
Realty ONE Group
3 locations to serve you — Rancho Bernardo, Mission Valley and Carlsbad
Hours: Call or Email anytime.