Home Selling in 11757>Question Details

Elaine, Home Buyer in 11373

Can I earn profit when I sell my house after two years?

Asked by Elaine, 11373 Wed Dec 30, 2009

i paid 10% DP ( 35K) and the house is in a very good location and condition.
Seeking for advice. Thanks.

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The answer to your question, Elaine, is that after 2 years, each owner of the property is entitled to profit by $250,000 upon sale.

The really good news is save all of your receipts for work on the house....you deduct all improvements from the profit first.

So, if you paid $200,000 and improved the house $100,000, you could sell it for $550,000 without paying any additional taxes.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Wed Dec 30, 2009
Hi Elaine, It depends upon how much left you have on your mortgage and compare that to the current market value. If you need to use that profit money to purchase another home, you may be out of luck. No one knows for sure unless you get a comparable market analysis done by a real estate professional. Then you can go from there.
0 votes Thank Flag Link Wed Dec 30, 2009
You will get this answer: it depends.

How much did you pay for it, based on market comparables?

If you bought it considerably less than what the comps show, and if the market improves the next couple of years where your property is going to be worth a lot more than what you paid for it, then yes, you may be able to earn a profit after factoring in taxes and selling expenses.

But if your area doesn't see much appreciation, and if you paid more than what it's worth today, then the answer is more likely, no.
0 votes Thank Flag Link Wed Dec 30, 2009
Hi Elaine,
The advice we are going to be able to give you at this time is to ask for the services of a local Realtor who can provide you with a thorough CMA. That way you'll be able to understand the current market value of your home.
0 votes Thank Flag Link Wed Dec 30, 2009
Unfortunately, no one knows what tomorrow will bring and any answer would only be speculation.

Anna
0 votes Thank Flag Link Wed Dec 30, 2009
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