Home ownership is on the rise and the real estate market is booming as people look to invest. Over 5.5 million existing homes are sold every year and that doesn’t even include the 800,000+ new homes sold every year – numbers that are expected to increase in the coming years.
Data suggests that most of these homebuyers will spend 6-18 years in their home before selling it, depending on where they live. Of course, some people will stay longer and others will look to get out early – which begs the question, “When can I sell my house and does it even matter?”
People buy homes for different reasons, but it’s imperative to view your home as an investment – whether it be short-term or long-term. No matter which side of the spectrum you land on or what your reasons are for selling, getting a return on your investment has to be the end goal.
Buying a home is a powerful achievement that takes years of hard work, planning, dreaming, and execution. Whether you buy it outright or get a mortgage, the house is yours and you can do what you want with it (for the most part) – meaning you can sell the house whenever you want.
With that said, it’s not so much a matter of ‘when’ to sell your house, but rather ‘should’ you sell your house or do you ‘need’ to sell your house. You can sell the house anytime and while it makes sense to sell fast in certain situations, it’ll often result in you having to cut some losses.
Most professionals recommend waiting at least five years before selling your house, allowing you to gain equity in the home – which means a greater chance at turning a profit. If profits are important to you and you’re not a professional home flipper, the longer you wait to sell the better.
The ‘Five-Year Rule’ is an unwritten code or theory that states most homeowners won’t break-even when selling their home within five years of buying it. When you factor in all the costs that go into the purchase and sale of the home, owners need to build equity first.
Of course, there are some exceptions to the five-year rule where it might make sense to sell sooner. For example, some of the housing booms we’ve seen in recent years have caused many to consider selling early – especially considering how much profit they could pocket.
With that said, most homeowners should plan on living in or owning the home for five years before attempting to sell it. At that point, you’ll want to wait for the market to provide a valuable opportunity. If you can do that, you’ll be rewarded for something you got to enjoy for a while.
When you first purchase a home, calculating your break-even point gives you a glimpse of how much you would need to sell the home for to break-even. This requires you to take into account a number of factors and costs that go into the home-buying and home-selling process.
Let’s take a look at some of the most prominent factors and extra costs that impact your break-even point:
Once you know your break-even point, you’ll want to follow the real estate market and keep an eye on your home’s current estimated value. It’s best to sell your home when the market is hot and your home’s value is at a peak, but some situations might cause some people to sell fast.
Buying and selling a home in a short period of time has its pros and cons. Some people will end up with extra cash in their pocket, while others will be dealt a loss – sometimes big, sometimes small. Either way, there are a number of reasons why people might not be left with a choice.
Let’s take a look at some of the most common reasons why some people might want to sell early:
If you’re unsure about whether or not you should sell your house early, consider consulting with a real estate agent or tax professional. They can help point you in the right direction and give you an idea of what your break-even is, what your home is worth, and where you should go from there.
Are you interested in selling your home fast? Do you want a real, honest, and transparent cash offer? At Sell Your House Fast Mississippi, we’re ready and willing to make you a cash offer. We make the home-selling process quick, painless, and easy – so contact us today to receive your offer!
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