How to Value Your Orlando Vacation Home

The growing value of Orlando vacation rentals has made Central Florida a thriving market for real estate investors. But when it’s time to sell, homeowners can make mistakes when valuing their homes. Knowing how to value your Orlando vacation home will help you get the highest return on your investment.

How Most Investors Value their Orlando Vacation Homes

A home that’s occupied by its owner will have a different valuation when compared to vacation homes used for short-term rental income. Most homeowners look at similar properties in their neighborhoods to determine a fair market price. But this doesn’t provide an accurate assessment of your home’s value.

You can end up selling your home for too little, reducing your profits on the sale. Or, you might price your home too high, keeping you from selling the home altogether. Working with an experienced real estate professional gives you accurate and reliable market data when it’s time to sell.

Factors that Affect Your Home’s Value for Buyers

You can determine the value of a home based on its potential use for new buyers. Your home might be used as a short- or long-term rental as well as a primary residence. Consider different use cases to calculate your holiday home’s value. Basing the value on its most profitable use can give you the highest possible selling price.

But it’s the buyer who determines how they’ll use our property. Gentrification and other factors can determine how buyers choose to use the homes they buy. Valuing your home based on all possible uses can help you meet your financial and investment goals.

The Future Value of Your Short-Term Rental Vacation Home

You can value your vacation home based on the revenue it can generate as a short-term rental. Previous increases in market value may appeal to buyers, but you should also consider future projected value when determining the selling price of your home.

If you want to value your home as a short-term rental property, you can estimate the revenue a new owner can expect to gain in the next year. Occupancy rates and average booking prices can influence your projections. Changes to local laws related to short-term rentals and taxes can also affect your valuation.

The more stable the market, the more you can use your home’s previous short-term rental history as a basis for its selling price. Be realistic. New buyers may have a different assessment of the market. The more information you provide, the greater the chance of selling your home at a price you want.

Selling a vacation home is best achieved with the help of a professional, especially if you live outside of the area in which your property is located. Team Donovan helps today’s home investors buy and sell Orlando vacation rentals. We’ll help you determine the true value of your investment property so that you can maximize your return. Call us at (407) 705-2616, or complete our online form to schedule a free consultation.