Home prices are at record highs and are still rising, but there are some early signs that the market may be starting to cool down. For sellers looking to get the best price for their home, now is the time to sell. If homebuyers make offers quickly because of as much or more than sellers ask for, it's a seller's marketplace. The agent will be asked why you're selling and they'll tell them that you made an error in judgment that will make some buyers uncomfortable.
Let's take a look at some common scenarios and why selling your house sooner rather than later could make a lot of sense. Take some time to decide if you should sell and then study the local home sales market with your real estate agent (here's how to find a real estate agent in your area) before pricing your home. Even if your new job is still relatively local, a longer daily trip can actually affect your quality of life and reduce the time you could spend with your family; selling early and getting closer to work might be the best decision for you. I moved to a house that has gained a lot of value over the past year, but I want to move because I don't like the neighbors.
Normally, if you live in your home for at least two years and it's your primary residence, you're exempt from paying capital gains taxes on any profit you make from a sale. But if you sell your home before two years, you're likely to be subject to capital gains tax on the profits you make from the sale. I think you have to pay capital gains for anything you earn in the house if you live there for less than two years. Selling your home is better than having problems with a large home loan and possibly risking foreclosure.
But before you rush and make a hasty decision, it's important to consider the disadvantages of such a hasty move. The question then on everyone's mind will be what happens to the house or neighbor you didn't want to stay in. If your family's circumstances have changed, your housing situation may need to change with them as well. As long as the sale is official and the house is legally yours, nothing prevents you from selling it right away.
Third, if you're selling for a profit, you may have to pay capital gains taxes if you've owned your home for less than two years.
