Oftentimes, people buy a home thinking they’ll live there forever, or at least a very long time. Here’s the thing, though: Life happens. Circumstances change, and sometimes you’re faced with the prospect of selling your home not long after you’ve bought it.
The long-standing rule is that you should stay in your home for at least five years to build up the equity needed to pay for the cost of selling it. Rules are meant to be broken, though, and there are three instances when it’s advisable to bypass the five-year rule.
The first is if your property has appreciated significantly in value. We’ve seen this happen in our area. Homes in certain neighborhoods appreciate very quickly, and if your house is one of them, you can pay your selling costs and move on to your next home.
The second instance is if your neighborhood is going downhill. If you notice property values dropping quickly, that will damage your ability to sell your home down the road. Even if you have to take a financial hit to sell, it might be worth it in the long run because the financial hit you’ll have to take later could be worse.
The third (and most obvious) instance is if you hate living in your home. Your happiness is worth something too, so if you’re miserable in your current home, it’s probably worth it to sell—even if you have to take a financial hit.
As always, if you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.
