The typical way people sell Airbnb property is the same way people sell primary homes but this should actually be your last resort. You should only enlist a realtor as the last option because it will end up costing between 5-6% of the purchase price for their commission. Learn more below.
This was an actual text message from an Agent that was selling an Airbnb and even advertised it as a successful Short-Term Rental. Sadly this is not a unique answer from a Realtor when asked about simple financials like gross income on a property.
This is still the standard method however, it’s not the best way to get it out to the masses of people wanting to buy STR properties. The MLS and websites like Zillow are geared towards short-term rentals. These investment-type properties can’t be easily searched on their database.
When you work with a real estate agent, you’ll get support at every step, from prepping and listing your home to marketing. However, this is once again geared towards the primary residence buyer and therefore is a waste of 5-6% of the sales price.
Selling on AirDeed is the new and easy way to reach investors searching for short-term rentals. Even better is that it is 100% free to list your property on our website no matter if you list 1 or 100. With no fee to list you can save that 2-3% fee on a listing realtor and pocket the profit. Simply close with a title company or lawyer and you are all set to move on to your next investment.
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A vacation home should always be sold as furnished real estate because future reservations are being booked with those furnishing being shown on the home-sharing listings. This means any changes could cause negative reviews for the potential buyer which may decrease their willingness to purchase.
If you’re planning to sell your vacation rental property as a turn-key Airbnb or VRBO, then you should continue to take bookings. However, if the real estate value is higher than what an investor would pay depending on Gross rental income and cap rate, you may want to sell it as non-rental real estate.
It depends on which home-sharing website they are different for each. The main two are Airbnb and VRBO respectively. Airbnb doesn’t allow the transfer of a listing to a new owner while VRBO allows you to transfer the listing to the new owner. Therefore you may want to only take future bookings on VRBO when selling.
The difference between these two should be minimal at best. Mainly the difference should be the cost to furnish. This is because short-term rentals are a high-risk industry so the value isn’t related to Gross revenue or cap rate. At any time in the future, the market could collapse or new regulations could be imposed and then all that is left is the real estate to sell at market value.
The majority of seasoned investors will want a minimum of 15% Gross revenue compared to the purchase price. This is because STRs have much higher operating costs than long-term rentals. If you are under this level, you may still get some interest from entry-level investors or individuals who want a vacation home and some revenue to offset the costs.
All way above the industry average of 19.17% open rate and 1.77% click rate.
At this point, it should be clear that when someone wants to sell Airbnb property they should first start by going directly to where investors look for properties. Only after not finding a buyer, should they resort to a Realtor. The one exception is if the value of the property is higher to a primary home buyer than the value it’s worth to an investor.