I just had a new home built. How long do I need to wait before I can sell it?

Asked by Kitty, 75134 Thu Feb 18, 2010

I just bought a house. I had it built, it was finished 12-1-09. How long do I have to live here before I can sell it. There isn't anything wrong with the house, but it's too far out for me. I live in a Dallas suburb.

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Christian Munive’s answer
Christian Mu…, Agent, Nashville, TN
Fri Feb 19, 2010
Hello, there is no rule that can’t stop you from selling your own home, but the builder may have something on the purchase contract that keeps home owner from competing with them at the same time. I would advise you to check over the purchase contract and see if there is anything in writing that prevents you from selling it within a certain time.
0 votes
Ronda Allen, Agent, Plano, TX
Fri Feb 19, 2010
I hope you got a great deal on the house. I presume you paid closing costs to buy the home, and you'll encounter closing expenses to sell the home, too. That will likely put you upside-down on your investment for a while. If your builder is still in the neighborhood building new homes, you're really at a disadvantage until the neighborhood is finished. If you just cannot tolerate your commute, you might consider leasing out the house for a few years, and then selling when the market conditions are better for you. Demand for residential leases in DFW is high, and many of those 'tenants' are really future buyers who just have a home to sell before they can buy. They are telling us that they want to rent a home that they would consider buying when their home sells, as they want to avoid the hassle and expense of moving twice.
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T.E. & Naima…, Agent, Dallas, TX
Thu Feb 18, 2010
Is the paint dry?

Of course you can sell anytime you want. I can't think of a reason to prevent you, but obviously buying a house is a little like buying a new car off the lot. A car loses value as soon as you drive off the lot. A newly built house will likely sell for exactly the same prices that other new construction in the same neighborhood are selling for.

This means you might not make any money and would likely have to bring money to the closing if you sell immediately after buying, because there are transaction costs.

The good news is that while the market is not rising rapidly, it is firmer now than it has been in a couple of years, and the market markedly improves as warmer weather rolls in. With the tax credit set to expire on deals made after May 1, there will be some pressure to purchase up until April 30.

So, if you're going to wait until the market value is high enough to cover your transaction costs, you will probably miss out on the tax credit rush. Immediately after the rush, prices will soften, unless the economy turns on a dime (unlikely). Overall Dallas has experienced a stable market with some areas rising in price perhaps 5% and others dropping by 5% or more.

Waiting will also incur holding costs for you. Taxes, insurance and maintenance will eat away at your net proceeds until the house is sold, unless you find someone to occupy and pay you something. A rental is one way to bring in money while you wait for the market price to rise above your costs. You could also consider offering seller-financing terms with some added risk to you that you might wind up getting the house back should the buyer default. This choice may motivate the buyer to chase after the tax credit. A final choice (besides living in it until a year or so passes) is to try to create a lease contract that gives the renter an incentive to buy.
Web Reference:  http://www.SumnerRealty.com
0 votes
Deborah "Deb…, Agent, Waxahachie, TX
Thu Feb 18, 2010
Kitty, you have had 3 great answers, but all have been from folks outside of the Lancaster, Tx., market.

I am a Realtor serving the southern Dallas County and Ellis County areas.

Your motive for building to begin with is definitely something you have to consider and your reasons for selling now. You do need to outweigh the expense of commuting versus what you may lose on the sale of your home.

But you CAN sell now. Can you sell at a profit...probably not as Lancaster is a bit of a sluggish market.

Can you break even - possibly. I would be pleased to speak with you at length about your motives, your options and give you a free market analysis of what your home may be worth on today's market. Contact me any time and we will see if we can find a good solution for you.
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Dan Chase, Home Buyer, Texas City, TX
Thu Feb 18, 2010
You can sell as soon as you have title. Can you sell for a profit or even to break even? Probably not.

Consider the real costs of selling the house
Consider the real costs of commuting.

Can you make up the difference in what it will cost to sell by what you would save by a shorter drive?
Can you just suck up that amount of lost money?

Answer the above and see if it really is better for YOU to sell or to stay where you are now.
0 votes
Gregory Ray, , Flowery Branch, GA
Thu Feb 18, 2010
That is a loaded question. You should tell us your motive for having the home built. Was it for investment and do you feel it is the right time to sell? Can you see yourself making money selling now? After you sell will you be able to invest the money again and get what you want or use the money to do another spec build? Usually you have to wait to recomp your closing costs. You know the math of the deal. Just think about the things I mentioned above.
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greg, , Boston, MA
Thu Feb 18, 2010
Unless you have a restrictive covenant on the property prohibiting a sale within a specified period of time, there should be no obstacle in selling your home right now.
0 votes
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