How early is too early to sell my house? I bought it less than a year ago but I need a bigger place. Is it better to wait a few years to sell?

Asked by Karma, Philadelphia, PA Wed Sep 9, 2009

How early is too early to sell my house? I bought it less than a year ago but I need a bigger place. Is it better to wait a few years to sell or does it not make a difference? This is my first home so any advice will be appreciated :)

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6
Daffanyjacks…, Home Buyer, New York, NY
Thu Apr 14, 2016
I have been in my home for 15 years, It is a single family home. My son is older and now I need something larger. I am not sure my house will sell quickly, so is there a program to help single parents trying to buy a larger home or 2nd home.
0 votes
Brigita McKe…, Agent, Stroudsburg, PA
Wed Sep 9, 2009
Hi, Karma!

You can sell your home at any time. If you sell your home after owning it for only a year, chances are that you will most likely take a loss. In order to make a profit on your home, it is best to wait. Buying a home is a long term investment. Usually it takes about 5 years to get a decent return on your investment.

What you also need to remember is that when selling a home, there are costs involved. There are mortgage payoffs, real estate agent commisions, transfer taxes, notary fees, miscellaneous fees, etc. Whatever funds you receive from the sale of your home, the lender gets paid first and then the rest is distributed among the other fees. Anything that is left then goes in your pocket. If there is not enough from the sale of the home to cover these fees, then it will come out of your pocket. Chances are that since you own your home less than a year, you have not paid much of your mortgage principle, which means you owe close to what you borrowed.

Would adding an addition to your current home be a possibility for now? Building an addition would increase the value of your home. It would then increase your living space and you may be able to wait a few years before purchasing a larger home.

Brigita McKelvie, REALTOR, e-PRO, GRI
Keller Williams Real Estate, Bethlehem, PA
Office: 610-867-8888 Direct: 610-393-9424
E-mail: brigita@brigitamklv.com
Web: http://www.brigitamklv.com
Blogs: http://activerain.com/blogs/brigitam
0 votes
Edmund Choi, Agent, Paoli, PA
Wed Sep 9, 2009
Never too early... never too late. Your have your reasons for wanting to sell, obviously. Take a moment and analyze your marketplace and the one to which you intend to move. A Realtor will assist in concurrently performing the sale and purchase. Also, consult a CPA to discuss any tax implications. Good Hunting!
0 votes
Terrence Cha…, Home Owner, Allentown, PA
Wed Sep 9, 2009
In this market, the larger and more expensive homes have been more affected in pricing than the smaller homes. So if you are moving into a bigger home, now is the right time to do it. Let me explain:

Let's say that your home was worth $200K in the prime days of late 05 or in 06. Let's assume that the market value of your home went down 20% from then to now. Now the market says it will go for $160K. Well, that's a $40 difference. Now the target home you want to move into was worth $300K in the same time frame and lost 20%. This means the home is now worth $240K. That's a $60K difference. See were I'm getting at?

This was just a small explanation, but in actuality it is the homes $250K and below which are moving, which means the price drop may not have been as much as 20%. If the home was $250K to $300K and higher, the homes really haven't been moving. And this means that the price drop may be at LEAST 20%.

I hope that helps. In a nutshell just remember: In a down market - move up and in an up market - move down.

Terrence Charest, e-Pro
0 votes
DeJaniera Li…, Agent, Jenkintown, PA
Wed Sep 9, 2009
Unless you don't care -- you may be taking a loss by selling your property. How much is your home worth and what is your budget for a larger property. Are you willing to break even?
0 votes
Abe Mills, Agent, Greenville, SC
Wed Sep 9, 2009
Karma,
You can sell your home whenever you want. There are some tax benefits availanle for waiting 2 years, but if you are not happy, then sell. Talk to your agent about this.

Good Luck!
Web Reference:  http://www.abemills.com
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