The average homeowner in the United States stays in their home for 13 years before selling. However, the typical homeownership length in some metro regions can be as little as six years; in others, it can be as long as 18 years. They don’t call it a forever home for nothing. Most of us buy with the intent of staying a long time—sometimes indefinitely. But here’s the rub: Things change.
Life takes us in a different direction, or the house you fell in love with only a few short months ago somehow becomes your biggest regret. Maybe the neighborhood is changing, or financial difficulties are making it impossible to enjoy your new home. (1) If you recently bought a home, but your situation has changed, you may be wondering, “can I sell my house fast Hillsboro?” Let’s go over what you need to know to make an informed decision about selling your house after buying it.
How Soon Can You Sell a Home After Purchasing It?
You can sell my house fast Tigard, OR, at any time following the closing. However, doing so is not without consequences. Many of the costs of selling your property soon after you buy it are measurable. Closing costs, capital gains taxes, agent charges, and other expenses are included.
Aside from the potential financial implications of selling a newly purchased house, the hassle of negotiating with many mortgage lenders can have an emotional impact.
How Quickly Can You Sell Your Home Without Incurring a Loss?
There are financial hazards to selling your home soon after purchasing it, but that doesn’t mean you don’t have a solid reason to do so. You paid closing costs throughout the buying process that you cannot return until the house appreciates in value or you gain equity. You should also factor in relocation and selling charges. Before deciding whether or not to sell, you need to learn about the breakeven threshold.
The breakeven point is the point at which you may anticipate to recoup your whole investment in the property. In a typical market, you’ll build equity as you pay your mortgage, and your home will grow in value, which can be used to offset both the cost of ownership and the expense of closure.
What to Expect when Selling in Varying Timelines
While everyone’s situation is unique, it’s a good idea to understand what to expect when selling soon after purchasing. You may discover that waiting a few more months makes the selling process more financially favorable or, at the very least, less financially detrimental to you.
Selling After Six Months
People who sell something rapidly should expect to lose some money in general. This means that unless you have an unavoidable or exceptionally compelling cause to sell, you may be better off waiting a little longer.
Selling After a Year
If your property is in a rapidly developing market with significant appreciation, the seller may be able to break even. However, the vendor will most likely lose money in most areas and situations.
Selling After Two Years
You can now qualify for the capital gains exclusion, which is a positive. This means that you may be able to at least break even and, in certain cases, make a profit. Make sure you speak with a tax specialist or an agent to determine whether you are eligible for the exclusion.
What to Think About Before Selling a Newly Purchased Home
Before you market your house for sale again, there are a few things you should think about.
Mortgage Prepayment penalties
Your mortgage may not have a prepayment penalty, but it’s something to consider if you plan to sell a newly purchased home. If you have a prepayment penalty, it could be a percentage of your remaining loan total, a flat rate fee, or a proportion of outstanding interest.
Loan Repayment
When you get a mortgage, you are agreeing to an amortized loan. This means that the majority of your payments in the first few years will go toward the interest payment rather than the principal sum. Basically, if you intend to sell your home during the first few years of ownership, you probably don’t have much equity.
Appreciation
Real estate is a long-term investment, not a get-rich-quick gimmick. While the housing market has been insane since the pandemic began, with historically low borrowing rates, short inventory, and other variables driving up prices, property values normally climb slowly over time. The amount your house appreciates depends on various factors, including the amount of inventory and the amount of demand in your area. Natural and forced appreciation are two types of appreciation.
Natural appreciation occurs in the price of your home over time due to market forces. Forced appreciation occurs when a property is purchased for less than its market value or when a residence is renovated and then sold at a higher price.
Buyers’ Negative Perception
Buyers can find out when the house was most recently purchased on services like Zillow. Some people may see the short period of time between the purchase and the resale as a warning flag. It may lead homebuyers to believe that the neighborhood is unsafe or that the house has severe flaws. This, however, should not be a deal breaker.
You can utilize the ad description to explain why the speedy flip is necessary, such as “seller must relocate.”
Do You Intend to Sell Your House?
The answer to the question “how soon can you sell a house after buying it?” is straightforward. However, the factors that can influence your selection can be rather complex. While living in a property for several years before selling it is normally financially beneficial, money isn’t the only element that influences where you need or want to reside. Selling your house to a cash buyer rather than on the open market means you won’t have to spend time and money sprucing it up, and you won’t have to pay broker commissions or closing costs.
If you want to sell your house quickly and easily, you might get a cash offer. Today, receive a free, no-obligation offer from a reputable iBuyer.