You spent months and months getting everything together to buy your dream home. It is picture perfect and has everything you want out of a home and then some. Then, something unplanned happens. You find a problem with the home, you decide this just is not the home for you and your family, or an unexpected opportunity comes along and you have to move soon. But, you have just recently purchased this home. You ask yourself how soon can I sell this home? Is it too early to sell a home I just recently moved into? These and many other questions must be swirling around in your head causing a mild panic over this home but do not worry, there are also options for people looking to sell their homes regardless of how long the home has been in your possession.
To Sell or Not To Sell
The first step in deciding if it is too early to sell your home is the reason behind selling. Everyone homeowner will have their own reasons for wanting to sell, and that is their personal business, but before rushing to sell your home it is important to figure out if the reason is worth all of the hassle. Many people have unexpected things happen in their lives. The unexpected is one of the only things that is actually guaranteed to happen. When these things arise sometimes hard choices must be made, this is made even more stressful if you have just purchased your first home. But, you can not help the unexpected such as a family emergency, a new job opportunity, or even market appreciation when you realize your home is worth much more now, even in a short amount of time. These are all understandable reasons to want to sell your home whenever you have only lived there a short amount of time.
One reason that all new homeowners need to watch out for is buyer’s remorse. This is a real thing and can turn any purchase into an area of self-doubt and stress. The psychological term is cognitive dissonance which is mental discomfort caused by having two conflicting thoughts so the two thoughts ‘fight’ back and forth and make us doubt the decisions we make. It is also referred to as the little voice of doubt in your head and if we give in to that voice and those feelings of doubt it can lead to cognitive dissonance. The discomfort of second-guessing your decision is hard, but it is a part of life. After most major decisions many people second guess if it was the right one. This is especially true when it comes to something as permanent as a home. After buying a home, the homeowner may have the feeling of being ‘trapped’ by this decision because it is something that cannot be easily changed or altered. It is also an expensive decision so it is common to regret it because you see all of the money going out and if you have doubts about the home you may think to yourself that you are paying a ton of money for something you do not even love.
When In Doubt
When these doubts start to creep, think about why you bought the home in the first place. The most important quality of the home to think about is the location. Is the home in a good location for you or your family? Anything else about a home can virtually be changed, but not the location. This is the one thing about a home that you are stuck with permanently. Qualities that you do not love about the home can be changed over time, renovations are a possibility that many people may overlook whenever they go into panic mode about the home. Selling your home may be more of a hassle than doing a few repairs and renovations to easily make the house into your dream home. No matter which direction you choose, this is a tough decision and should be thought about with care and consideration before jumping back into the housing market straight away, though that does not negate the fact that there are extenuation circumstances that may cause you to sell your home at a short notice. In this case, there are ways to minimize the stress and maximize the profit of your newly bought home to make the return to the housing market a breeze.
Whenever a situation arises where you have to sell the home that you have not to be in very long, you can feel the stress start to set in. The panic creeps up and you start thinking of worse case scenarios for you and your family. The biggest concern is if you have to leave the home quickly, what if you can not find a buyer then you are stuck paying a mortgage and rent in the location which you have to relocate to. Not many people would have the money in their budget to accomplish this. The goal is to move on with your life and with your new location, losing the least amount of money as possible. The money made from the home will have to go to multiple things, so it is important to keep that in mind when pricing the home for sale. In addition, the money from the sale of the home will have to be allocated to first paying off the mortgage on the initial home, paying any fees that have accumulated from buying or selling the home, and then the rest can be allocated to the new home. This can be a problem with so much riding on the sale of one home, many homeowners will not be willing to negotiate the price of the home down any further.
So, You Wanna Sell…
The first thing to do if you need to sell your home soon and fast is to try to maximize the value of your home quickly by doing affordable and fast renovations on the home. These can include a fresh coat of paint, fixing the leaky sink, or other seemingly mundane repairs that will add value to the home because every little thing counts. You can make a list of things you can do that will cost you under a couple of hundred bucks and slowly knock out the list as best as you can. One big thing that can be done fairly quickly and cheaply that will bring potential buyers to the home and add curb appeal is landscaping. You may think you want to spend all the money you have for inside renovations, but curb appeal is the first thing that is judged about home and will hopefully bring in potential buyers. You need to wring every last bit of equity out of the home to try to recoup the money if you are trying to sell your home within a year of owning it. You can also save some cash by not using a full-time real estate agent to cut down on the costs if you are wanting to market through an agent.
Potential home buyers are expecting there to be a little room for negotiation, so being so adamant on the price point may make sense to the homeowner, but it may push away potential home buyers. Another thing to be wary of is capital gains tax. If you are making a profit on selling your home you may have to pay a capital gains tax up to 20% of the profit, but this number depends on your tax bracket. This percent is assuming you have owned the home for at least a year. If you have owned your home for less than a year and are trying to sell it you can run into even higher capital gains tax rates. But it is unlikely that the homeowner will come out with a profit unless the home has appreciated on the market in the time you have owned it. Selling your home in that short of time since the purchase is more about trying to avoid losing money than it is about making a profit. While it does look like you will not be getting the return you would hope to when selling your home that soon, there are a few things that the homeowner is able to do to minimize losses.
Attempting to sell your home on a very short timeline is stressful, but doable. It can be managed by not stressing the small things and taking things slow and one task at a time. There can be numerous reasons why you are wanting to sell your home after recently purchasing it, but if it is linked to buyer’s remorse, take a step back and think about why you fell in love with your home in the first place. Trying to sell your home that soon after purchasing can lead to several difficulties and the possibility of losing money. There are steps to take to prevent that, and technically you can sell your home any time after purchasing it, but you need to think if it is worth it and if you will recoup enough money to make selling the home worth it in the end.
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