If an unexpected change happens, you might find yourself needing to sell your house sooner than you anticipated. What happens when you need to sell your house within two years of purchasing it? Are you going to be able to get out of it and make money? Here are a few things to consider when you are going through that process:
1. In a hot market, you might be able to make money. The break-even point has gone down from three years to about two years, depending on the property. Historically, it isn’t a sure thing, but if the market continues the way it has been, you may be able to sell a home you’ve had for two years and make money.
“Selling your house may work out perfectly, but it’s better to have conservative expectations.”
2. Higher capital gains tax. If you sell in under two years, you’ll need to pay more taxes. To find out how much it will cost you on the back end, speak with your accountant.
3. Significant closing costs. Be aware that it will cost you more to sell than it would to buy. In a seller’s market, it may be possible to negotiate the buyer into paying for some of those costs. It may work out perfectly, but it’s better to have conservative expectations.
If you have any specific questions, please feel free to reach out to us by phone or email. Be sure to check out our website as well. We’ll get you the answers you need.
