Buying or selling real estate requires a savvy negotiator even for the simplest of transactions. When it comes to luxury real estate, and further still, luxury vacation real estate, it’s a whole other kettle of fish.
The process of negotiating during the purchase or sale of a vacation home can be long and detailed, and if you’re not sure what to look for, you might miss out on some opportunities.
At its core, negotiation is about give and take. It’s about making compromises to prioritize the things that are most important to you.
With an experienced real estate agent at your side, negotiating your next luxury vacation home sale or purchase can be easy. As a Park City and Deer Valley real estate team with over 30 years of experience, there are a few things we see time and time again.
Here are just some of the things you need to consider when negotiating your next vacation home sale.
Furnishings Can Be Included
When selling a primary residence, the furnishings are usually going with the current owner of the house to their next house. Homes are not usually sold with furnishings included. However, when we’re talking about selling second or even third homes, it’s far more common to see these sales proceed with the furniture included.
Depending on the seller, buyers can often negotiate almost anything in the home.
Commonly called “chattels” in real estate, these items are described as anything in the home not considered part of the property.
In Park City, we’ve seen homes sold with furniture included, sporting equipment included, personal artwork, and even vehicles included in the sale.
However, since personal property like furniture is not technically considered to be real estate, it is not negotiated on the Real Estate Purchase Contract (REPC), which is a Utah Standard Form. Instead, chattels like this are negotiated on a separate bill of sale.
Looking for selling advice in Park City? Read these blog posts next:
- How Long Does it Take to Sell a Home in Park City?
- Is it a Good Idea to Sell My Park City Home in the Winter?
- How Much Does it Cost to Sell a Home in Park City?
It Can Get Emotional Sometimes
One of the main benefits of working with a real estate agent is to have a third party to help when things can get a little sticky. For example, if a buyer wants personal artwork included in the sale, but the seller feels attached to the piece, negotiations could break down as emotions get in the way.
An experienced and savvy real estate negotiator can help you see the forest for the trees and make the best decision based on your specific wants and needs.
Luxury Vacation Bookings
As a primarily tourist-driven city, luxury vacation homes in Park City are often used as rentals so owners can generate revenue while they aren’t using their property. Many vacation homeowners here employ property managers to manage their bookings, and in many cases, these bookings are made far in advance.
This adds a layer of complexity when it comes to selling a property and negotiating on the closing of that property. Closings could be staggered due to the ebb and flow of tourist season, with some sellers not wanting to forgo the rental revenue they were expecting from a booking from several months ago.
Additionally, for buyers, it could create an issue if they plan to buy a home, close on it, and then use the property during a period when a renter has booked it through the previous owner.
The REPC requires that buyers honor reservations and bookings, which is why things can sometimes get a bit complicated.
On our end, we are often tasked with reaching out to property managers to see if dates can be moved.
Learn more about what it’s really like to live in Park City with these posts:
- How to Hire a Property Manager in Park City
- Is it Better to Buy or Rent in Park City?
- How to Buy a Ski-in, Ski-out Home in Park City
Club Memberships
Park City and Deer Valley are home to some of the most prestigious and exclusive clubs. For many people who choose to vacation here, access to club amenities and features is a huge draw.
As such, it’s common to see buyers negotiate membership to these clubs as part of their home sale. Similarly to furnishings and art, club memberships are also not negotiated on a REPC but rather a separate Bill of Sale.
Get to know our favorite gated communities in Park City right here.
The Working Condition of the Home Matters Too
Due diligence is part of any home sale, but in Park City and Deer Valley, it’s common to spend a little more time making sure everything is in order. Additionally, some inspection items done during the due diligence process can be big-ticket items, for example, the useful life of the roof, radon mitigation, furnace issues, and other home facilities are all things that buyers can negotiate on.
This is particularly important in an area like Park City, where we know winters are fun, but also hard on your home!
In some cases, buyers will want these items repaired before proceeding with the sale, while other buyers prefer to take a credit on the purchase price. This is one of the reasons why pre-listing inspections can be valuable for sellers. It allows them to get ahead of any potential issues and gives some strength during the negotiation phase.
Is it worth updating your home before selling it? Read our blog right here to find out.
What About Condo Negotiations?
Luxury condos in Park City are a little bit different than detached homes. For these sales, buyers will usually request a status certificate on the property in addition to any information about upcoming special assessments.
A special assessment occurs when a condo building requires work over and above what is covered by regular condo fees. Special assessments are often taken from the condo reserve fund. For condo buyers, it’s important to know what’s currently in the reserve fund and if there are any upcoming special assessments. Buyers can use these details as part of their negotiation.
Are you thinking about buying a luxury condo in Park City? Read these posts next:
- What to Know About Park City HOAs
- Why Buy a Luxury Condo in Park City
- How to Buy a Second Home in Park City Remotely
Are Closing Costs Negotiable?
In some cases, certain property transfer fees can be negotiated as part of the sale including title settlement fees and recording fees.
In Utah, these fees aren’t significant, but there’s one fee that can be negotiated that is significant: the transfer fee is often up to 2% of the purchase price of the home, which is why it’s essential to have a negotiation expert on your side.
Working with an Experienced Luxury Vacation Real Estate Agent is Essential
Buying or selling a luxury vacation property in Park City or Deer Valley requires experience. For many individuals, this isn’t something you do every day. Luckily, it is something we do every day!
Here at CMFH, we have over 30 years in the local market and we understand the nuance of luxury real estate in Park City. Having helped countless vacation property owners over the years, we can help expertly prepare, market, and negotiate on your behalf for the best possible results.
Are you thinking about making a move in Park City or Deer Valley? Give us a call at 435-647-8035 or email info@cmfhparkcity.com.
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