Home Selling in Fremont>Question Details

Rajesh Kari, Both Buyer and Seller in Fremont, CA

Want to sell my property within 6 months of purchase. what are the problems i will encounter?

Asked by Rajesh Kari, Fremont, CA Thu Jan 10, 2013

1. I recently bought a home last august in Fremont, northgate area but I am planning to move to another state shortly.
2. What problems will i encounter with respect to selling the house?

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Answers

12
John Juarez’s answer
If your house is correctly priced for its condition and location and the market your will have no problem selling. In fact, your house should sell strongly in the market. Inventory is low and buyer demand is strong.

On the other hand, if you price your house at a level designed to provide a certain net to you after repayment or your loan (or recovery of your cash), recovery of your down payment, payment of closing cost (including Realtor commission), and any possible repairs that you agree to make a sale may not be possible. Even in the rapidly moving market overpriced homes do not sell. Pricing a home at a price that the seller NEEDS to get is a bad strategy.

Also, you need to present your home in the best possible way. For instance, we provide staging and professional photography at no extra charge to our clients.

One other thought, you should check on the tax ramifications of selling a home at a profit after only living in it for only six months.
1 vote Thank Flag Link Thu Jan 10, 2013
You ask what problems you might encounter:

1. Without knowing your original purchase price, you may or may not see a market increase. Although the market is spiking up sharply, if you paid a premium to buy your home, the rest of the market may not have caught up to you yet. While not probable – it’s possible – we don’t have enough information to know. A CMA would tell you very quickly.

2. Without knowing how much you put down, depending on the purchase price of your home, you may not have enough equity to recoup all your selling costs.

3. If you discover that you won’t recoup your costs, you might be tempted to price your home high. This would be a big mistake – even if you found a buyer that was willing to pay the over-market price, it wouldn’t appraise, causing more problems and delays.

4. If you manage to sell your home and make a profit, then you will have tax implications that may or may not be applicable based on the reasons you are moving. Only your accountant can really answer this question.

5. Loans originated in the past 6 months should not have any prepayment penalties, but, as stated below, check to make sure.
0 votes Thank Flag Link Sun Feb 3, 2013
Hi Rajesh,

No problems at all, if your house is valued at a higher price than what you paid for it.
Contact your lender to know if there is a prepayment fee for paying the loan sooner.
Contact several local realtors together advice and find one that you feel comfortable working with.

Douglas Lagos
Realtor®, Certified HAFA Specialist (CHS)
DRE# 01921046
Coldwell Banker Residential
Tel. (310) 463-8088 http://www.douglaslagos.com
0 votes Thank Flag Link Mon Jan 14, 2013
Allot of great answers have been provided.
Just to reiterate what I think are the 3 main points:
1. Check your loan docs for possible prepayment penalty.
2. List price should be determined by the market; not necessarily what it will take to 'net' you a certain dollar amount.
3. If you do end up cash positive on the sale, it will be subject to taxes. (generally, you can avoid taxes on the gain of your primary residence if you live in a home 2 out of the past 5 years)

As a fail-safe, if you're unable to sell currently at the value you need, you may want to consider renting out the home until values increase to where it makes more sense to sell.

That's my 2 cents!
If you have any questions, don't hesitate to contact me.
0 votes Thank Flag Link Thu Jan 10, 2013
It all depends on your situation

The quickest way you can sell your property is to expose it to the biggest target audience possible -- so please engage a realtor to help you.

With your realtor's and your lender's help, you can estimate your selling expenses, which could include, if applicable penalties on your loan if it was written that way.

If you are being relocated, and this poses as a hardship if you can't sell for what you owe --- you may even qualify for a short sale as a last resort,

Too many questions and situations that will factor in giving you a suitable answer.
0 votes Thank Flag Link Thu Jan 10, 2013
You will need to hire a professional that will price your home according to what the market shows is comparable. Make sure you do not list too high as it will become market weary. Trust your agent when he/she brings an offer and try to work out the details to come to a compromise. Also, curb appeal is key.
0 votes Thank Flag Link Thu Jan 10, 2013
Hello Rajesh
As you probably know the market has taken off like a rocket in the last few months. Yes, inspite of the closing costs involved, in selling your house, and depending on the COMPS and few other factors, my gut says you should be OK.
Yes, an agent can give you a much better picture of the whole selling process.
Regards,
Kanwal Chaudhary
0 votes Thank Flag Link Thu Jan 10, 2013
Hello Rajesh,

The market is much better than it was six months ago. Prices have gone up, inventory is low and there there are multiple offers on almost every property.

There will be closing costs involved, but you may still be able to get ahead. Without looking at your home and getting other details from you, it is hard to say for sure, but the situation for sellers is very good because there are many buyers in the market. Demand is high and supply is low leading to a win-win situation for sellers.

You should have an agent give you a comparative market analysis to let you know how much you can get for your home. There is no cost or obligation and any agent should be able to help you with that.

Meena Gujral
Help-U-Sell Achievers Realty
http://www.helpusellachievers.com
510-279-9580
0 votes Thank Flag Link Thu Jan 10, 2013
It all depends on your purchased price - You need to check whether your home is worth more than what you have paid and whether you can sell the home now which cover your loan amount+selling costs (escrow fees, tax, fees, etc.). If you can sell and covers all the loan and fees then you are good to sell and move to another state.

If it doesn't cover then see if you can rent the home to cover your mortgage and how much cost you can handle per month to cover other expenses. If you cannot handle the expenses and your home value doesn't cover your purchased loan then you may short sale your house which will impact your credit, consult with your accountant for any tax related questions if short sale. If you bought the house with down payment assistance program then you need to check whether you have to repay that loan if you sell within a year. So you need to consult with a realtor to check your home value and run the numbers and see what is best for you at this time.
0 votes Thank Flag Link Thu Jan 10, 2013
Hi Rajesh,

You should not encounter any problems selling the house, other than what was already mentioned. The good news is, the market seems to be even better at this time. Your agent will review the recent activity; current listings, pending listings, and recent sales. With that information you will be able to determine the market price for you home.

That is a nice area with good schools, maybe with some tips from your realtor, you will be able to sell the home and move on.

good luck,
Brian
0 votes Thank Flag Link Thu Jan 10, 2013
Please check your motgage docunebts to make sure you do not have a prepayment penalty on your current loan...other than that you should have no problems selling other than the costs but with the current lack of inventory and high demand you may be able to sell and break even. If you plan to purchase in another state before you sell tben that is where you may have an issue since you will have the monthly obligatio. Of the Fremont home that will count in the qualifying fir a new home.
Should you wish to discuss this further please feel free to contact me anytime
0 votes Thank Flag Link Thu Jan 10, 2013
The main problem is going to be costs. It will cost you approximately 6-8% to sell your home. Although there has been some price appreciation the last 6 months, it may not be enough to cover your costs.
Good luck,
0 votes Thank Flag Link Thu Jan 10, 2013
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