How To Sell A Resort Property
It is likely that your resort or campground is the largest asset you own and you want the highest possible return on that investment that you can get. You probably have a number in mind when you consider your current value but many times, that number does not equate a probable sales figure. So, the question is; how do we achieve that number or get closer to it?
Real estate brokers are prohibited from giving tax advice. But, what we can tell you is that your sales price is directly tied to the numbers provided in your filed tax returns to the IRS. To a certain extent in todays market, banks are dictating prices so the more debt you can service, the higher your price will go. We understand that there are tax advantages to reporting a lower bottom line. Yet, if you are considering a sale (whether cash or contract) in the near future we want to be able to demonstrate that your cash flow can in fact service 80% of the value of your assets under the current lending guidelines. While this may equate to a higher taxable income, these taxes paid will more than likely be recouped in a higher sales price.
At Realty Sales, we believe that if you are considering selling that you start at least 2 years in advance with some strategic and intentional planning prior to putting your property on the market. This plan incorporates three steps:
- Get an idea of where your current value would be. Contact one of our experienced sales people for a professional analysis of where your resort or campground would potentially sell at in today’s market. Our resort valuations are an economical and great place to start.
- Meet with your CPA to find out what your tax situation would look like both for immediate tax consequences AND future capital gains issues. Decide now if there are options right for you to retain as much capital as possible through a 1031 or other tax deferring programs.
- Stay current with with the economical conditions and lending climate. This market is very fluid and changes can come quickly. The best way to stay up to date with the market is to join our mailing list.
We are always happy to help you when the time comes to sell and our agents are available for consultation. When that time comes, just give us a call. With our marketing reach, sales portfolios, industry knowledge, strategic partnerships, buyer data base and service second-to-none, Realty Sales is really your only choice for Resort Sales in Minnesota.