How Soon Can You Sell a House After Buying It?
If, for any reason, you have a question: “Can I sell a house I just bought?”
The short answer is YES. The more detailed answer looks at the housing market, your property’s location, and your financial situation.
So, if you’re interested in knowing the real deal about selling newly acquired homes, then hop right in. We’ll discuss the common reasons for selling and the various outcomes you can expect. We’ll also add some advice to help you benefit from this sale.
Common Reasons Why People Sell a House After Buying It
It’s not unheard of for new homeowners to sell their property. These are the usual causes for wanting to let go of a newly purchased home. If yours fall under any of these, then you are not alone.
It’s normal to have second thoughts right after purchasing something, especially an expensive one. You may have miscalculated your mortgage and expenses. Or the house doesn’t seem a perfect fit for you now.
When you went to the open house, you may have failed to notice the surrounding neighborhood in your excitement. Sometimes, the real character of the area would only be revealed when you’re already living there. And this may not be to your liking anymore. This could certainly be a reason for wanting to move out of the neighborhood.
Life is full of surprises. Countless situations could arise that will force you to sell your house fast in Kansas city. You could be offered a position that requires a job relocation. You could be going through a divorce and liquidating the house will make the settlement easier. There could also be a sickness in the family that would make you sell your house to pay for the treatment. You could also be hit with a sudden loss of income, putting you in a financial bind. Whatever personal reason you have, selling the house will make your circumstance better.
Receive a Higher Bid
If you bought a property in a coveted or prime location, it’s highly possible to get offers for your newly acquired place. It could feel like being at an auction house with bids pouring in. Accepting the highest offer, which is way over the original purchase price, could very well net you a tidy profit.
Buy and Sell
If you’re interested in entering the business of buying and selling houses, then immediately selling a recently purchased property is the norm. Each house that you buy is considered an investment property that you will sell for more profit.
How Soon Can You Sell a House After Buying It?
Legally, you can immediately sell the property after closing the deal with the seller.
However, it is advisable to live in the house for two years so you can break even. You can avoid hefty capital gains taxes by making it your primary residence for at least two years in the span of the last five years. This can save you about $250,000 in your net profit.
It is highly recommended by real estate agents, though, to follow the five-year rule. It underlines the importance of staying in the purchased house for at least 5 years to really profit from it. Houses gain a 4 – 14% average annual appreciation rate in Kansas. Just sitting on it makes you money.
Possible Outcomes of Selling a House You Just Bought
There are multiple outcomes that you can experience when you sell your newly purchased home. These are not necessarily the only results possible, just highly likely. Hopefully, the one you get is a positive one.
- Sell the house and turn a nice profit
If you bought the house at a quick sale or foreclosure, you could profit significantly from selling it. You could do some renovations by yourself to save on improvements. You can then sell the house for a larger sum, even without waiting for a few years.
- Sell the house and break even
You could qualify for the capital gains tax exemption by making it your primary residence for at least two years. Do some upkeep while you’re there and sell it afterward. It may not be the ideal scenario, but it enables you to let go of the property without it being a liability.
- Sell the house but end up spending too much
One scenario where it doesn’t go well is if you sold the house at a loss. All sorts of expenses come with the selling process. This includes house preparation and renovation costs, listing costs, agent fees, closing costs, capital gains tax, property taxes, mortgage prepayment penalty, moving costs, and other miscellaneous fees. It is so easy to underestimate the costs that you could end up losing more money.
- Fail to sell the house and lose money on it
Houses up for sale soon after being purchased tend to receive a negative reputation. People can see the record of ownership of each house listing. Seeing that you’ve only possessed it for a short period of time before selling it could turn away potential buyers. People will assume that there are issues with the house causing you to sell it asap. This is the worst-case scenario that you can hopefully avoid.
In a Nutshell
The simple answer to the question, “how soon can I sell my house after purchase?” is that you can immediately put it up for sale right after buying it. However, keep in mind that there are heavy consequences that come with this decision.
A better option is to wait, so you can sell at a profit. Your home’s price appreciation increases annually. You can also add more value to your home by doing major renovations or even simple upkeep of the property on your own. The financial benefits are significant when you sell at a later time.
However, if your financial situation or current circumstances are forcing you to sell your newly purchased home, then HouseMax is here for you. Get a free quote and a no-obligation cash offer within 24 hours of contacting us. No need to do renovations, we’ll take the house sight unseen.