You could turn around and sell your house the day after you buy it, no one will force you to stay. However, selling your home soon after buying it can mean losing money, losing opportunities, facing capital gains taxes, or paying penalties for early mortgage payments. You can sell your house right after you buy it, but that freedom comes at a cost. Whatever the reason they separated from a house, once the owner has the title, he can sell it the next day if he really wants to.
While it's possible to sell as soon as the title is in your hands, should you? The process of buying and selling a home isn't exempt from a price, so keep in mind that selling right away can cost you more than you can earn. A new job, a job relocation, or a move to a remote job may mean that selling quickly is the best option to take advantage of a job opportunity. However, unexpected changes in life can force you to make difficult choices, and selling a house sooner, even after two years, may make sense in certain situations. It covers everything you need to know to decide whether to sell now or wait, including selling costs, tax considerations and how to calculate if you could lose money selling.
To avoid financial losses like these, you must build up equity in your home before you sell it, but that's not always an option for sellers, who must get rid of a home quickly after buying it due to unforeseen events. This means that when you sell your home, you'll have to recover enough to cover the cost of paying your mortgage and the costs you'll pay as a seller. Some lenders include provisions in their mortgages to sanction prepayment if you sell your home before a certain amount of time has passed. It's quite common for buyers to ask sellers during negotiations to cover their closing costs as part of the deal, so as a seller this time, keep in mind that this may be something you can be responsible for.
Let's calculate what it would be like to sell your house in this scenario if you've built up a bit of equity when making your mortgage payments. Before selling their home, the homeowner should consider whether they can recover both the original sales price paid and the buying and selling expenses in a short time. While it may seem like selling soon is sure to result in financial losses, this isn't always true; after all, home-lovers buy and sell homes quickly for a living. Common thinking says that sellers won't break even in their initial investment in housing if they don't stay in it for five years.
Often, a homeowner's decision to sell their home soon after buying it has nothing to do with the real estate market and instead focuses on big changes in life. If you do this calculation for your own home and get a number below zero in the end, you won't break even and, instead, you'll probably have to pay out of pocket to sell your house. In most cases, it's more financially beneficial to apply for a loan for your current home than to have to pay the pre-sale penalties, the cost of moving, and the fees associated with buying a new home. While most people who aren't professional sellers don't plan to sell two years after buying, there are a lot of reasons why people end up selling soon after buying.
If there's an unusually high demand for properties in your neighborhood and the value of your home and surrounding properties has skyrocketed, it might make sense to sell your house for a profit, especially if you want to move anyway.