How Long Should You Live in a House Before Selling it?

How Long Should You Live in a House Before Selling it? | New Home Gurus

Find Out How Soon It’s OK to Sell a House After Buying It

Few people stay in a house they buy forever. In fact, at one point or another, families need to relocate, find a place with more space, or even downsize. No matter when or why it’s time to sell a house, experts typically say that:

  • You should keep a house for at least 5 years before selling it.
  • The average homeowner keeps a house for about 10 years before listing it.

Why Keep a House Before Selling It?

There are a few key reasons why it’s usually in your best interests to retain ownership of a house for a handful of years before relisting it. Those include:

  • Breaking even on transaction costs: It costs you money to buy and sell a home, and those costs aren’t cheap. In fact, many Realtors say that keeping a house for 5 years before selling it is the best way to just break even on those transaction costs (like the title fees, appraisal, home inspection, and more).
  • Building equity: In the first few years you own a home, most of your mortgage payment is usually going towards interest. It usually takes at least a few years before you’ll start to build any real equity in the house. As you gain equity, you stand in a much better position to make money on the sale of the house. If you sell before you build any equity, your lender could make money off the sale while you lose out.
  • Appreciating home value: As a general rule of thumb, you can expect a home to appreciate in value anywhere between 3 to 5% a year. Consequently, the longer you own your home, the more it will likely be worth when you do end up selling it. That can mean more money for you when the house actually does sell.

Can I Sell a House within 2 Years of Buying It?

Of course you can, but that doesn’t mean you’ll make money on the house — or that the deal will be a good one for you. That’s because:

  • You may have to pay capital gains tax.
  • There are typically higher tax rates for short-term capital gains versus long-term ones.

Keep in mind that there CAN be exceptions to capital gains taxes, so it’s always best to evaluate your situation against the laws instead of making assumptions about any tax liabilities you may have from selling your home.

What If I Can’t Wait 5 Years to Sell a Home?

If you need to unload a house within a couple of weeks, months, or years of buying it, your best bet is to work with an experienced Realtor.

A pro can help you leverage the laws, the market conditions, and other factors to:

  • Sell your house as quickly as possible
  • Help you get the best deal on the sale

Selling a Home in Texas? Get Cash Back at Closing

If you’re selling a home in Texas, you can get experienced help and cash back at closing when you work with the 5-star Realtors® at New Home Gurus. We can guide you through the process, helping you with offers, negotiations, and closing. Plus, we’ll split our commission with you at closing!

Home sellers who work with New Home Gurus can get back an average of $4,500 to $12,000 at closing.

How Much Cash Can You Get after Closing?

Call (281) 668-8124 or Contact Us to Find Out Now

We are standing by, ready to answer your questions and explain the details of our commission-sharing program.

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