Mar
9
I bought a house in January & have done a lot of remodeling. Now I want to sell it (my intensions were to stay, but I am thinking about moving). Can I ask @ least 10K more than what I paid for it???? My realitor said something about waiting @ least a year b/c earlier than that would be considered a “flip”… What does that mean & are there rules to selling a house after you fix it up???
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3 Responses to “How long must I live in my recently purchased home before I sell?”
When you “flip” a house, you buy it with the sole intention of fixing it up and selling it quickly for a profit. Even though it wasn’t your intention when you bought the house, it will probably look like you bought the house just to flip it (but there’s nothing wrong with that). There are no rules or laws that prohibit or restrict your ability to sell a house after fixing it up.
You can ask any amount you want for the house, but remember that 5 or 6% of the selling price will go to real estate commissions.
The only advantage to holding onto a house for a certain length of time is that you do not have to pay taxes on any profit up to $250,000 for an individual or $500,000 for a couple if you live in the house for two years. If you own the house for less time than that, any profit (after expenses to fix it up and fees to sell it) are taxable.
Check your mortgage for any pre-payment penalties, you may be better off staying awhile.
You don’t have to wait a year, and most buyers don’t care if it is a “flip” or not. If the quality of the repairs are there, you may get a nice price.
YA CHECK YOUR PAPER WORK FROM TITLE IT SHOULD TELL YOU IF YOU HAVE A PREPAY PENILTY OR NOT YOUR OTHER OPTION IS A LEASE option. This situation you would have the buyer put down a deposit (20,000)and then pay the mortgage payment for at least one or two years then you sell it to them but you make all the arangments ahead of time plus at this time you would tell them that you will be selling them the house with equity still in it when they buy it later. If you want i can explain more to you just call me at the office 360-213-2670-x769 My name is michael… i can also help the buyer purchase your home too