How to Sell Your House After 6 Months | EstateAgentPower.Com

Understand the Drawbacks of Selling a Home within 6 Months of Purchase

House sale is associated with some selling costs such as taxes, mortgage payments, agent commissions, etc. Here are some drawbacks of selling a home within 6 months of purchase.

Capital Gains Tax

Sellers are liable to pay a capital gains tax on the profitable amount generated from the house sale. Usually, a house seller is required to pay a 10% or 18% tax on the profitable amount as a basic rate to taxpayers. But when you decide to sell a house after 6 months of purchase you may be charged at a high rate because properties sold within two years of purchase are taxed under short-term capital gains tax.

Tax Exemptions

Another drawback of selling a house immediately after purchase is you may not be able to take advantage of various tax exemptions. Sellers selling a house after owing it for more than 2 years can claim tax exemptions and reduce their tax bills. Whereas, your profit may be treated as ordinary income and taxed at a rate as high as 37%, when selling a house without holding it for more than 2 years.

Mortgage Prepayment Penalties

Mortgage lenders can ask you for prepayment penalties when selling a house before the established mortgage term ends which can impact your net profit. You may have to pay heavy penalties to end the mortgage agreement so soon. If you sell a house after 6 months of purchase, you may be asked to pay prepayment penalties of up to 2 to 5 per cent of the loan amount.

Consider Closing and Moving Costs

House-selling also involves expenses like real estate agent commissions, legal fees, and closing costs apart from the taxes. These costs influence your net profit gained from a house sale. So, consider all these costs before selling a house purchased just 6 months ago. Decide whether it is a wise move to sell a house so soon after purchase and also calculate your profits expected from the sale.

How to Sell Your House After 6 Months?

Selling a house immediately after buying it is not an ideal decision but not always possible to avoid. Financial crisis or personal circumstances sometimes make it obvious to sell an asset like a home. Here are some tips to help you in selling your house smoothly.

1. Make Your Home Sale Ready

Preparing your house for sale is the best way to attract the best deals and potentially gain more profits. You can consider minor repairs, renovations, decluttering, and depersonalisation of your house to enhance its appearance and make it appealing to potential buyers.

2. Setting the Right Price

Pricing your home accurately is also essential to ensure quick sales and more profits. Properties priced competitively attract genuine buyers and sell fast. You can opt for various ways and means to determine a reasonable price for your home. Researching or analysing current market conditions, comparing sold house prices, and home valuations are some of the ways to determine a price for your home. Turn to Estate Agent Power to avail of the free property valuation services to find the value of your home.

3. Sell Your House Online

Selling a house online is easy and requires less effort. You can create a sale listing for your property from anywhere and present it for sale before a diverse pool of global buyers. Navigate to estateagentpower.com to post a fee advertisement and attract the best buyers for your house. The real estate platform empowers you to create a unique and creative listing to reach a global audience.

4. Engage a Solicitor to Close Deal Smoothly

Engaging a solicitor in the sales process is essential to ensure all legalities are fulfilled and also helps you close the deal smoothly. A solicitor will prepare all needed documents, handle the legal process, and assist you in title transfer to close house sales efficiently.