Strategies for Selling a Vacant Home

As the real estate market continues to stabilize, sellers may find that their property remains on the market significantly longer than the days of “list today, sold tomorrow.” There is also more competition for buyers. So, it can be frustrating to put your home on the market, expecting a fast sale, only to find that after six months you’re still waiting for an offer. This is especially true if you need to move quickly and leave your unsold home vacant.Besides creating a marketing challenge, a vacant home can also be a target for vandalism. Here are strategies you can use to hasten a sale and protect your property during the process.

Instead of producing a spacious appearance, an empty room tends to look smaller than a furnished room. So, leave behind a few select pieces of furniture and keep the window treatments in place. A chair or lamp on a small table will confer a sense of scale and help potential buyers gauge whether their furniture will fit the space.

If you decide to remove the furniture, have the house cleaned and painted. Furniture, rugs and decorations tend to hide or minimize imperfections. When furniture and artwork have been removed, every blemish and bruise becomes accentuated, faded paint and wallpaper become more noticeable and scratches and nicks stand out.

Repaint brightly and boldly colored rooms to a neutral tone. What was an eye-popping room when fully-furnished may appear stark and small when empty.

To thwart unwelcome visits, give the house a lived-in look. Set a couple of lamps on timers, and ask a neighbor or friend check on the house daily to collect mail, park a car in the driveway, and close and open drapes and windows. Continue using a gardening service or hire someone to cut the grass regularly. During the winter months, arrange to have snow shoveled from the walks and driveway.

If available, consider employing a home manager or house sitter. At little or no cost to homeowners, the house is furnished and decorated for show-to-sell condition. Most companies require home managers to mow the lawn, shovel snow, even pay pool maintenance and utilities. Having someone living on site discourages vandalism, protects against deterioration and weather hazards and may even reduce insurance costs. (Check with your insurance carrier.)
Leave the utilities connected. Depending on the season, make sure the thermostat in the house is set at a comfortable level. You don't want a potential buyer to run through the home because it is too hot or cold.

Review your homeowner's insurance policy with your insurance agent to find out what the stipulations and coverage pertain to your vacant home.

Find a real estate professional with experience selling vacant houses. Often, these sales professionals specialize in relocation. You want to make sure that you are comfortable with your lines of communication. If you will be residing in another town, come up with an agreement on how often your representative will check on the home and what should be done if a problem develops.

Although a vacant house presents certain challenges, it does not need to be difficult to sell.

Do Your Homework: 1031 Tips

Considering a 1031 exchange for that oceanfront home? Then make sure you know about the latest tax ruling so you can avoid paying taxes on the gain of your sale.

For the uninitiated, a 1031 exchange provides for the deferral of gain from one investment property into another. Make sure you read that clearly: ...from one investment property into another, ie. properties held for personal enjoyment do not qualify. The latest tax ruling reinforced this clarification so now attention is being directed towards how to differentiate a property "from pure personal enjoyment and document it as an investment property."

The first step is to regard your property as an investment and operate it as such. In the case of that oceanfront home, renting it and maintaining good records of all communications. There are plenty of property management companies to choose from. Next, make sure you understand what the IRS expects for validating an investment property. The IRS allows you 14 "personal enjoyment" days and a "reasonable" number of maintenance days. You may also be able to work in up to more weeks of "business days" use if you are able to support such use.

Come tax time, be sure to include Schedule E for rental property. This form includes income, expenses, interest and taxes for your property. This is different from your personal return because that one is specifically for your personal residence. Including items that should be on Schedule E on your personal return is an indication to the IRS that the investment property is likely for property for personal use. One more thing: be sure to include depreciation for your investment property. It is required for rentals and is one more way to differentiate your investment property from personal enjoyment property.

These are the kinds of things you should consider and it is always a good idea to consult with your tax advisor for additional considerations. Treating that investment as a business will help ensure you are able to do the exchange and defer the tax, or else wind up paying the tax on the sale of your vacation home.

To see some great possibilities for a 1031 Exchange along our beautiful coastline, visit a Prudential Burroughs & Chapin Realty office.

Thanks to Realty Times

Open Houses for February 2 & 3

Prudential Burroughs & Chapin Realty invites you to attend these Open House events:

Saturday 1-3 p.m.
6308 Red Cedar Rd - Timber Creek
Lots of space for the family. 5 bedroom colonial. Inground pool. Huge lot with many trees. Beautiful interior floors $399,900
Dir. N Military Cutoff, right on Covil Farm Rd, 6th right on Red Cedar. House on left.
Frankie Pierson (910)256-9299

Saturday 2-4 p.m.
4720 Woods Edge Dr - Woods Edge
Lovely home with room to grow just minutes to all the beaches. This home features a huge bonus room, large lot. $265,900
Dir. S College towards Monkey Junction, left on Woods Edge Dr @ Woods Edge subdivision.
Gary Traflet (910)256-0032

Saturday 1-4 p.m.
316 N Hampton Rd - Millbrook
3BR/2BA brick ranch w/wired workshop/garage & playhouse. Lots of upgrades in this pristine family home in a great location. $229,500
Dir. S College Rd, left on Holly Tree, right on Pine Grove, right on Beasley, right on Kelly, right on North Hampton.
Beth New (910)458-9672

Saturday 12-2 p.m.
9080 S Southern Blvd - Winnabow
Only minutes from downtown Wilmington and the beaches but in a cozy .80 acre country setting. Lovely home! $214,000
Dir. Hwy 17S to first Leland exit, left on HWY 133 approx 6 miles, right on Southern Blvd.
Judy Quinn Hall (910)256-0032

Saturday 1-4 p.m.
6425 Gammon Ct - Laurel Ridge
Charming 3 bedroom, 2 bath cul-de-sac home, well maintained. Cathedral ceilings, walk-in closets in master. $178,900
Dir. Carolina Beach Rd South past Monkey Junction, make U-turn just past CVS, right on Welbourne into Laurel Ridge, left on Ferring, left on Gammon. 409195
Phil Mancuso (910)256-0032

Sunday 2-4 p.m.
605 Dock St - Historic District
Master suite has 13x15 sitting room, bedroom, and bath. There are 6 fireplaces, one with gas logs. Wooden floors! $599,000 Dir. West on Market, left on 6th St, left on Dock, house on left. 385068 Carolyn Wells (910)256-9299


Prudential's New Homes Division are available for viewing at these times:

Thursday - Saturday 11 a.m. - 1 p.m. & Sunday 1-5 p.m.
Cambridge at Cross Creek
Homes on large, Ω acre lots on a cul-de-sac street with curb and gutter. Peaceful location located in Pender County near the New Hanover County line. $279,000 - $299,900
Dir. Located in Hampstead just West of NC Hwy 17 and 7 miles from the Castle Hayne exit on Hwy 40.
Bill Guy (910)515-4724

Tuesday-Thursday, Saturday 11 a.m. - 1 p.m. and Sunday 1-5
Henderson Parke
1 & 2 Story homes w/ hardwd flrs, tile in baths & laundry, solid surface counters in kitchen, fireplaces in great room & distinctive exterior brick accents ALL standard features! Priced from the mid $200ís
Dir. S College Rd towards Monkey Junction, go past Cape Fear Academy, right into Johnson Farms on Pine Hollow Dr, left on Split Rail Dr, left on Trumpet Vine Way.
Stacy Pascucci (910)200-2039

Tuesday, Thursday - Saturday 11 a.m. - 5 p.m. and Sunday 1-5 p.m.
The Woods at Birch Creek
1 & 2 story homes offering 3 & 4 bedrms w/FROG/Bonus Rms over the 2-car finished garage.†Only minutes to shopping, dining & Downtown Wilmington! Priced from the Low $200ís
Dir. Hwy 17/74/76 across the draw bridge to Hwy 17 S. Left at the 2nd stoplight onto Ploof Rd across from Waterford. Right into Birch Creek & continue to the back of the community!
Eryn Moller (910)431-8007

Saturday 12-5 p.m. & Sunday 1-5 p.m.
Avendale
Homes on 1/2 acre lots from the Mid $300s, & coming soon, Townhomes from $200. Clubhouse, pool, sidewalks, lighted streets, water & sewer.
Dir. N Market St (HWY 17) to Hampstead. Left at light on HWY 210, right on 210 at Cross Creek. Avendale on right.
Art Dayton (910)279-4160