Homeowners with plans to sell their house are often found asking real estate agents, “How long should I live in a house before selling it.” That’s a fair question to ask!
Factually, the length of time you live in a home can majorly impact the sale profit from the house.
To cut through the noise, today we will take a closer look at this question and finally know the timespan to live in a property before putting it up as “houses for sale.”
So, to make a profit on your real estate investment, keep on reading closely!
3 Factors To Consider Before Listing Houses For Sale
If you want to make money by putting houses for sale and upgrading to a bigger home - compare the sale price and your remaining mortgage. Remember, the sale price must be higher than the mortgage.
- Capital gains tax
Real estate agents advise on living in a home for a minimum of two years before listing your houses for sale.
If you don’t live in a property for a minimum of two years, you are not eligible for capital gains exclusion. If you live in the home for 2-5 years before the sale, you can easily exclude $250,000 of the profit from the sale (thanks to capital gains tax).
- Market conditions
The highs and lows of real estate markets usually follow an 18-year pattern. If you purchased the home at a recession time, i.e., between 2008 and 2013, selling it now will maximize the home value.
However, if you purchased the home in the recovery stage (2014 to 2016), listing it too soon will cause you to lose money.
The Five-Year Home-Sale Rule Makes Sense
Certain things get more valuable with growing age, like fine wines and real estate too! The longer you keep them, the more valuable they will get.
We are talking about the “five-year rule” in the real estate market. As per the rule, homeowners should stay put for at least five years before listing their property on houses for sale in Buffalo NY. Or else, there will be the risk of losing money.
This rule holds ground because the closing costs and real estate commissions required to buy and sell consume 7 -15 percent of the house cost. So, if you want to make money from putting your houses for sale, the house value must exceed those fees.
Not to forget, the real estate market appreciates slowly. So, the longer you wait to list your house for sale, the more money you can make.
Buying and selling houses is a costly affair. Unless you have a specific reason to sell it quickly, it is advisable not to rush onto selling. Stay in the place for at least 2-5 years before putting it on houses for sale.
Make the right decision with Mike Silbak Real Estate
The real estate market is tricky. You can’t make the best move without proper knowledge. Homeowners of Buffalo take the professional assistance of Mike Silbak Real Estate whenever making any property buying and selling decisions.
Now it is your time to make the smart move with Mike Silbak Real Estate! Call us today!