How to Successfully Sell a Home with a Guest House

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By Clever Real Estate Updated October 21, 2021


If you’re lucky enough to have a home with a coveted guest house, then you’re looking at huge potential profits when you sell your home. Selling a home with a guest house calls for a few modifications to the typical sale process. Here’s what you need to know about selling a home with a guest house.

How to Successfully Sell a Home with a Guest House

Selling your home is pretty straightforward, but selling a home with a guest house can require a bit more creativity. Guest homes are desirable features when it comes to home buying. The extra space can generate passive income via renting, serve as an artist’s studio, or suit a college-aged child needing separate living space.

Whatever you use your guest house for, it’s important to maximize its value when selling your home. Not only can a guest increase your home’s sale price, but it can also entice tons of potential buyers to your home.

Having your home’s value assessed will give you a good idea of how much you can stand to profit from the sale. However, you should contact an experienced real estate agent to pull it all together.

There are several factors that will impact your home’s sale price, such as market fluctuations, when you list, and the neighborhood that your home is. Getting a great deal on your home is more complicated than just putting a For Sale sign on your lawn.

Working with an expert real estate agent is the best way to ensure that your guest home is highlighted in the sale of your home. A Clever Partner Agent can help sell your home at a competitive price, and all while saving you money. Clever Partner Agents agree to a flat-rate fee and provide clients with a full-service real estate experience.

Make Sure Your Guest Home Is Actually a Guest Home

If it looks like a guest home, quacks like guest home, then it’s a — well, it depends. What you call a guest home might not qualify as one under state or local laws. Each area has its own set of laws regarding the requirements of an official guest house.

A guest home that wasn’t properly permitted when it was built will cost the buyers a significant amount of money to get up to code or torn down, these costs could be hurt your profit margin.

If you find that your "guest house" doesn’t qualify as such under the law, you have two options — upgrade the structure to pass requirements or leave it as is. When selling your home, a guest house increases your home’s value, which translates to additional profit for you.

However, it’s possible that you’ll need to invest funds into upgrading your guest home so that it is up to code. Researching your state and county laws regarding guest homes will help you to understand what you’ll need to do to get things straight. Renovations can include adding square footage, adding an additional entrance, or converting a half bath to a full bath.

Highlight the Potential for Passive Income

As long as your guest home is up to code and your homeowners association (if applicable) allows you to take on tenants, you’ll have the opportunity to advertise your home’s potential for passive income.

A guest home gives homeowners the option to rent out to a long-term tenant. Renting out a guest home this way can generate a sizable long-term income for homeowners with minimal upkeep expenses paid out. It’s a great option for potential buyers who are interested in passive income.

Platforms like Airbnb and HomeAway make it easy to open your doors to people looking for temporary accommodation. It also allows the homeowner to determine when they would like to rent their guest home out and rent during peak vacation season. Ultimately, it is up to the homeowners to determine whether they would like to use their guest house for vacation rental on these platforms.

Let Your Guest Home Shine

Your guest home may look good on paper, but it needs to look great in-person, as well. To get the best value for your home, you should put the same amount of work into your guest house that you do in your main house. Cleaning, making repairs, and staging the space are all things that should be on your guest home’s sale preparation checklist.

When selling your home, it’s important to remember that first impressions matter — like a lot. Potential sellers are drawn to well-staged homes that are professionally photographed. Both your main and guest home should get that treatment.

You don’t need to perform major repairs if your budget doesn’t allow for it. However, simple updates like a fresh coat of paint and minor repairs can go a long way when it comes to showing off the value of your guest home.

Selling a home with a guest house?

A Clever Partner Agent will make sure the property speaks to buyers.

Choosing a Great Agent

You know that you’ve got a great home, but you’ll find it difficult to convince others of the same without some help. An experienced real estate agent can be the difference between major profits and a home selling well below its value. Think about what your wallet would prefer.

Clever Partner Agents are full-service real estate agents who will help guide you on your home selling journey from start to finish. Partner Agents work to get you the maximum profit on the sale of your home and save you money while doing it. Clever Partner Agents work for a flat-rate fee that is a fraction of the industry standard.

Connect with Clever to get matched with a Partner Agent who will sell your home for a low commission rate.

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