How Soon Can You Sell a House After Buying It?
Plans change, so it’s understandable that you may find yourself selling a new home you just purchased. You might also be curious about flipping homes for profit and are wondering about the legalities. How soon can you sell a house after buying it?
Learn more about property sale timelines below from locally-owned and operated Chattanooga Property Solutions. This is the team to contact the next time you search “sell my house in Chattanooga fast!”
Can I Sell a House Right After Buying It?
Yes, you can sell your home right after buying it. Before you rush out onto the open housing market, though, consider that this may not be ideal.
Most people own a house for about 10 to 13 years before selling it. However, nothing stops you from selling the place after a few weeks or even days. You can sell your home anytime after you close the home purchase deal and officially own the property.
Downsides to Selling a House Right After Buying
As expected, selling a newly acquired house has some downsides.
Less Appreciation
Depending on how long you own the house and the current housing market status, how sure are you that the home will appreciate enough to recoup lost equity? Financially, it often makes more sense to stay in the house for a while so that the price can go up and you can make money on a sale.
Homes appreciate by about 4% to 8% per year, on average. Why not hold onto your new house longer and push your profits above the breakeven point?
Capital Gains Tax
How soon can you sell a house after buying it? If you sell within one year, you’ll likely have to pay a higher capital gains tax when you sell it.
For example, the 2024 short-term capital gains were taxed as ordinary income—between 10% and 37% of the sale price. After a year, you may be able to pay a lower rate on your long-term capital gains tax.
Closing Costs
If you sell your house right after buying it, you’ll have to deal with mortgage prepayment penalties as well as closing costs and moving costs again. Typical closing costs lie between 2% and 5%, and that’s before realtor fees. The typical family spends about $1,500 to $4,000 per relocation, as well.
The unwritten five-year rule—plan to stay in the house for at least five years—looks to minimize what you’re paying on things like transfer costs.
Negative Buyer Perception
What do buyers assume if someone who recently bought a house wants a quick turnaround? Might they assume a problem?
Perception could lower the price during negotiations with a potential buyer if you’re trying to sell too quickly.
Sell Your House Fast in Chattanooga!
How soon can you sell a house after buying it? Our blog describes more about how long it takes to sell a house, but you could always get a free cash offer from our local team.
With over 20 years of experience, Chattanooga Property Solutions buys homes in Chattanooga fast–even if you’ve just bought the place. Contact us at (423) 454-3070 or online today!