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Finding and purchasing the right home is often a lengthy process, and many homeowners don’t intend to sell for a long time. But, there are many reasons why you might have to sell your home soon after buying it. The house is yours to buy and sell, so if you want to, you can sell it right away.
However, there are factors to think about, as turning around and re-selling can mean losing a lot of money or dealing with issues such as capital gains taxes or mortgage prepayment penalties.
Unless you purposefully buy a home to flip it, you probably intended to stay in your home for at least a couple of years, but things can happen out of the blue and change your plans.
In this guide, you’ll learn all you need to know about the pros and cons of selling your house quickly and get some tips on how to avoid losing money in the process. You’ll also learn when it might be best to sell your home as-is.
Why Do People Want To Sell Their Home After Purchase?
Finding your perfect home can feel like a dream, but there are many reasons you might have to sell a house again right after buying. Some of the common reasons homeowners have to put their home on the market include:
- Job changes: If you need to move your job, you won’t have the option to stay in your house.
- Financial problems: Unfortunately, your financial situation could change, and you might not be able to make the monthly mortgage payments anymore.
- Changing your mind: While you might think a home is right for you, living on the property might be different than you expected.
- Seller’s market: Beyond personal reasons, some people want to re-sell to make a profit. If the local market is hot, selling may be a benefit.
When Can You Sell To Not Lose Money?
Basically, as soon as you close, you can turn around and put the house on the market. But, to avoid financial downsides, you probably want to wait at least a year. There are more factors to consider than just if you can get back what you paid for the house.
You’ll also need to look at: the down payment, buying costs, selling costs, equity, moving expenses, and taxes.
Let’s get into some of the details.
How To Break Even
While homeownership is a goal for many people and often a great financial investment, it usually makes more sense to rent if you only plan to be somewhere for less than a year. The way to calculate this is known as the “breakeven horizon.”
This tool will take into account things such as monthly payments, your interest rates, and comparative market analysis. The amount of time you’ll need to wait to re-sell will vary depending on where you live and many other factors. You can find various calculators for this online.
Some Other Downsides Of Selling Your House Early
While you are legally within your right to sell your priority whenever you want what’s it belongs to you, there are some consequences beyond just the breakeven horizon. Mainly, you’ll need to know about capital gains taxes and paying mortgage prepayment penalties.
Keep reading to get a bit more information on each.
Capital Gains Taxes and Selling Less Than A Year Or Two After Buying
People who live in a home for two years as their primary residence don’t have to pay any capital gains taxes after selling as long as the profits aren’t above 250 grand for an individual and 500 for a couple. But, if you lived in the home for less than two years, you’ll need to pay these taxes on any profit you make. It is often possible to avoid capital gains taxes by buying a new property immediately after, but you’ll want to talk to an accountant or expert to learn more about paying capital gains taxes.
Mortgage Prepayment Penalties On Loans
Depending on your lender, you might have to pay a fee if you put the home up for early purchase. This is because the lender won’t be getting the interest payments they planned on. The amount you’ll have to pay depends on your exact agreement. Luckily, a lot of loans don’t have these penalties.
Are There Any Benefits To Selling Fast?
While there are potential downsides to selling your home too quickly, there are times when it makes sense to turn around and re-sell. You could still turn a profit in many cases. Here are some of the main reasons to list your home sooner rather than later:
- You’ve increased the home’s value by doing extensive renovations.
- The value of the house has risen quickly and unexpectedly.
- You initially bought on foreclosure or a short sale.
So, if you’re relocating in Las Vegas or have another reason you need to sell your home fast, it’s possible you won’t lose money. It’s best to reach out to a tax professional to consider your best options.
Get Help Selling Your Home Fast
Whether you need to sell your home fast for a personal or practical reason, Sell Your House Fast Las Vegas. We are here to help people in the Las Vegas area sell their homes quickly and get the most money possible. We know there are many reasons you might need to sell your property fast. We offer immediate cash offers and allow you to close in less than a week in many cases. Discover more about selling your home for cash and how we cut out the middleman to save you money.
