• CMG MORTGAGE, INC. NMLS #1820

How Soon is too Soon to Sell Your Home?

  • September 05, 2019

CMG Image

The home you buy today is not always going to be the home you live in forever.  Sometimes the need to move may come sooner than you expect.  Most real estate professionals recommend waiting at least five years after buying a home before selling it to make sure you recoup the cost of the home purchase.  However, circumstances vary, and in some cases, you could benefit from selling your home sooner rather than later.  Realtor.com contributor, Larissa Runkle, identified three times when you should break the “5-year rule.”

 

Your home’s value increases rapidly.

Many markets around the country have been experiencing rapid home price appreciation, and the neighborhood in which you buy could turn into one of those white-hot markets.  If that’s the case, you could sell your home and not only cover the costs of its purchase, but profit from the sale.  This move only makes sense if you are relocating to another area.  Selling and buying in the same rapidly appreciating market could leave you at a loss.  

The neighborhood quality is declining.

Maybe it’s just started to go downhill or maybe you didn’t do enough research before you bought your home, but the quality of your neighborhood can decline for a number of reasons.  In some cases, the construction of unwanted dense commercial or industrial facilities can lead to an increase in crime, or local schools or stores may close down.   If your neighborhood is going downhill, you may not be able to recoup what you paid for your home, but it’s better to get out now rather than wait until the market is saturated with numerous, comparable properties.  

You bought more than you bargained for.

It’s important to do your research before buying a home, but sometimes you make a mistake, it happens to everyone!  Maybe you underestimated how much work your fixer upper needed or maybe you thought you could keep up with the maintenance and you can’t.  You may have also had a change in your income and can no longer afford the mortgage payment, or the homeowner’s insurance or homeowner’s association fee has become too much to absorb.  Before you find yourself missing a mortgage payment, consider selling the property and taking the loss.  An initial loss now is way better than the lasting credit damage of missed mortgage payments or worse, foreclosure.

 

Everyone’s circumstance is unique, and there may be a time when you have to sell a home shortly after buying it.   Before selling your home, keep in mind that when you sell a home you have owned for less than a year, any equity you’ve accumulated will be subject to a taxation as would any other source of income.  Be prepared to cover this short-term capital gains tax.

 

Working with a trusted mortgage lender and real estate team is the best way to avoid making a mistake when you buy a home.  Buying a home requires research, not just into the property but into the surrounding area.  Experienced, local real estate professionals will be able to predict how your home’s value will increase and how the surrounding neighborhood is doing.

 

Sources: Realtor.com

Gerry Houseknecht
Loan Officer
NMLS # 91019
Branch NMLS # 1627273
GA 66186

Gerry Houseknecht

PHONE: (984) 239-2906
ghouseknecht@cmgfi.com

APPLY NOW
CMG Image
© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).