How Soon Can You Sell A House After Buying It?
There’s nothing stopping you from choosing to sell a house right after buying it, so, technically speaking, you can list the property as soon as the sale records. Whether or not you should sell a house right after buying it is another matter, though! That’s because there are some financial consequences that are unique to selling a house right after buying it (and within up to two years of purchase).
How Long Should You Wait Before Selling A House After Buying It?
Some real estate industry experts like to talk about home purchases like you’d talk about wine. That is (generally speaking) the longer they’re allowed to age, the better the outcomes will be. Yet, even though the median time homeowners spend in one property before selling is about thirteen years, it’s still not uncommon for people to wonder just how soon can you sell a house after buying it and still make a net profit.
The biggest obstacles to turning a profit from selling a house right after buying it are real estate tax laws/exemptions and the very slow nature of real estate appreciation. When it comes to taxes, the problems really start if you haven’t lived in the home for at least two of the past five years. In that case, the sale likely won’t qualify for the standard capital gains tax exemption, unless your situation meets a pretty narrow set of specific circumstances. (Find out more about that here: How To Sell A House And Not Pay Taxes On It). What’s more, many real estate experts recommend trying to retain ownership of a home for at least five to seven years to allow the market to appreciate to double digits so you can turn a profit on the sale.
If You Have To See Fast, Approach It Like Flipping A House
Understanding how to sell a house right after buying it requires approaching even a standard residential home sale a little bit like you’re flipping a house. That is, if possible, find ways to rapidly increase the market value of the home before you put it back on the market. Some home improvement projects take little time and yield high returns, like high-quality bathroom remodels (which can boost the sales price by more than 100% of their value) and quick-and-easy improvements to curb appeal. Once you decide to sell a house right after buying it, be careful to move quickly; each day that passes costs you more money in utilities, mortgage payments, property taxes, and insurance fees).
