What costs are involved in selling my vacation property?Typically, the cost involved in selling a second home or rental property is no different than your primary residence.
Most selling expenses are calculated as a percentage of the selling price, so they vary significantly from property to property.
I will be pleased to provide you with an estimate of your total closing expenses at a given sale price. Keep in mind that beyond the actual hard cost of your sales transaction, your escrow officer will be pro rating property taxes, mortgage interest, association dues and closed escrow and the size of your mortgage.
Your agent can explain this further. If you are selling a property you have classified as income property for tax purposes, you may consider a “1031 Exchange”. There may be significant tax savings to you if your plan is to purchase another income property with you sales proceeds.
Contact your accountant for information and to see if your transaction will qualify for a 1031. There are usually additional costs involved in a 1031 Exchange, depending upon how you structure the transaction.
It is important to investigate a 1031 prior to actually going into escrow, because there is contract language your agent will want in the transaction if you are exchanging your property.
Contact Dana Smith
Dana Smith, Broker Associate | RE/MAX Gold | 559-779-7534 | DRE #00836017