People often ask how soon they can sell the house after buying it. And the shortest answer is “immediately.” The day you buy your house, you can sell it then and there, and nobody will raise any questions. But selling it too early may cause you to lose money and pay more taxes and other payment penalties. So, when to sell without losing money?
A home can be the biggest financial investment, and nobody would want to sell it without gaining enough equity. However, unexpected circumstances can arise and force you to move from your dream house.
Reasons Behind Selling A House Shortly After Buying
Financial, personal or professional reasons can turn the tables upside down, and you may end up selling the house soon after buying it. Here are some of the reasons why homeowners sell sooner than anticipated:
- Personal Responsibilities: You may want to give more time to your sick parent or child
- Dream Job: Maybe your current job is demanding you to relocate, or you finally found your dream job that you can’t resist taking.
- Emergencies: Sudden medical bills may require you to sell your house
- Relationship: People often sell or purchase new places after marriage or divorce
- Neighborhood: A noisy neighborhood or increase in crime rate may force you to sell your home
How Soon Can I Sell My House After Buying It Without Losing Money?
If you are selling your house after keeping it for a year, renting in the first place would have been a better call. Even though you can get the same amount, how would you compensate for the associated costs, including the price for moving the furniture and any damages, and homeowners association fees?
The best time to sell a house is when you reach the breakeven horizon. This is the point when you can sell your home and redeem all the money spent on additional costs. In most cases, the breakeven horizon comes after two years when it’s safe to sell the house without losing any money. How soon can you sell your house after purchase is at least 24 months when you hit the breakeven point.
Can You Ever Benefit From Selling Fast?
In some cases, it’s possible to make a profitable deal, selling earlier than the breakeven point comes. The few possibilities are:
- House flipping: You made significant renovations to your home that helped increase your home’s resale value.
- There was a sudden increase in the home values of your neighborhood due to a big firm moving in your area, improved job market, or development in the area.
- You got your hands on a really good deal. This can happen if you bought the home in a short sale, and selling it in the right situations is now earning you money.
No matter how positive the situation may look, there can be hidden taxes or other expenses that might incur if you sell your house too soon. Therefore, always take help from an experienced real estate agent before jumping on any decision.
In case you have bought a house and are planning to flip it, we can grant a house flipping loan. For more details, call Red Door Funding at 832-539-1099.