Pristine lakes. Lively and charming small towns. Breathtaking scenery. These are just a few things that spring to mind when thinking about Kawartha Lakes. With so much to offer in such a short distance from Toronto and Peterborough, it’s no surprise that the Kawarthas has become a popular vacation destination.
In the summer, people flock to the area in search of fun in the sun. The rest of the year, visitors can be found strolling along the gorgeous hiking trails, picnicking, cross-country skiing, snowmobiling, or skating. It doesn’t matter what season it is. There is always plenty of bustle and activity in the vibrant towns of the Kawarthas!
And it isn’t just a great time for a visit. If you own a home or cottage here, you can earn a significant return on your investment by selling now. This is particularly true if you’ve held the property for several years. However, selling in the Kawarthas is a little different than in the city.
Prospective Buyers Are Different
When selling a home or cottage in a vacation destination, your potential buyers may not be looking for their primary residence. They are often searching for second homes or income properties to rent out.
If this is the case, there will be subtle differences in how you market, stage and present your listing. A real estate agent familiar with the area and who has investment experience will be a valuable resource.
Real estate is still one of the safest and most profitable long-term investments you can make! If you want to know more about how you can get started, check out a few of our investment articles below:
Financing Rules Are More Stringent
If a client is buying their primary residence, a 20% down payment is only required if the home is over $1 million. For example, a $500,000 property only needs 5% down. However, someone looking for an investment property must have 20% upfront, regardless of the purchase price.
Why does this matter? Knowing what type of person will be willing and able to buy your home is essential. Otherwise, you may find yourself wasting time weeding out unqualified buyers.
You May Have to Adjust Your Marketing Strategy
A person looking for a vacation home has different priorities than someone looking at a primary residence or investment property. This presents a unique challenge from a marketing perspective. Since you don’t know who your buyer will be, you’ll have to be more flexible with your strategy. Think of what all three types of buyers might want:
- Someone looking for their forever home will be primarily interested in the appearance, comfort, and structure of the house. Resale value is also important but may not be at the top of their minds.
- An investor is most likely to care about the home’s income potential and resale value. Any concern over appearance is primarily to improve their return on their investment rather than their own comfort.
- Someone looking for a vacation home is interested in what the house and the location offer. They likely care about the resale value, but cozy living spaces with easy access to attractions are higher priorities.
Now that you know what different types of buyers are looking for, you can prepare and market your home accordingly.
It can be tricky to appeal to all audiences, but an experienced and savvy real estate professional can guide you. Here’s How to Find a Real Estate Agent in Peterborough You Can Trust
Preparing Your Home in the Kawarthas for Sale
The way you prepare your home can have a significant impact on the results of your sale. Even though you may be promoting your listing to different types of people, the principle remains the same. A house or cottage that looks immaculate will get far better results than one that appears rundown. No matter who comes through your home, the following tips will help appeal to add perceived value:
- Clean, scrub, polish, and declutter from top to bottom. Remember the areas that often get missed during routine tidying, like the inside of cupboards and closets. Interested buyers will definitely look inside to see how much storage space is available!
- Make a list of minor repairs that will make your home stand out. Fresh paint, new hardware, and updated fixtures are simple and cost-effective but can pay off dramatically upon selling. If you’re handy, you might perform these updates yourself. Otherwise, your real estate agent can likely recommend a reputable contractor.
- Consider staging your house to maximize the effect. Strategic staging helps a buyer imagine the home as their own and has been demonstrated to increase the selling price substantially.
Knowing about the fantastic attractions and amenities of your location can also lead to a successful sale! Find out more about Kawartha Lakes below:
- Your Guide to Living in Kawartha Lakes
- The Joy of Cycling in Peterborough and the Kawarthas
- Discover the Best Kawartha Lakes Golf Courses
What to Consider When Setting Your Price
Setting an effective listing price is always one of the most challenging aspects of the sale. When selling a potential vacation or investment property, it becomes even more critical to get it right. Understandably, you want to get the best return. For that reason, many homeowners are tempted to overprice their property, especially when coming off the heels of a fast-paced seller’s market.
However, overpricing can turn qualified buyers away, and you may end up letting it go for less or pulling it off the market. Underpricing means your house may sell quickly, but you’ll end up with less than you deserve. A competitive but fair price will help you get the best results every single time!
Your real estate agent will perform a detailed Comparative Market Analysis to help you determine a fair value based on facts and numbers. They will consider the property’s age and size, the number of bedrooms and bathrooms, the lot size, and how much similar homes have sold for recently.
Work with a Local Real Estate Agent
Selling a home can be a complex process, and even more so when located in a popular tourist destination like the Kawarthas. A local Realtor® with investment experience can help plan your strategy and prepare your home so you can enjoy the best results with as little stress as possible.
We are real estate professionals who have specialized in Peterborough and Kawartha Lakes since 2018. Whether you’re selling, buying, or investing, we are happy to answer any questions and get you started on the right path. Reach out to us today at team@jeffandkatie.ca or call 705-243-9797 for more information.
