Sell Your House After 1 Year: What You Need to Know

Sell House After 1 Year: Things to Consider

As a seller, you don't have any legal restrictions on selling a house, you can sell a house immediately after buying it. However, selling a house immediately after purchasing it has some financial impacts such as:

1. Tax Implications

Capital gains tax is one of the major financial burdens to bear when selling a house as the tax is levied on the profitable amount gained from the house sale. Assets held for less than a year are taxed at higher rates as they fall in the short-term capital gains tax category. Your profit from the house sale will be treated as ordinary income and eligible for high-rate taxes. Taxpayers holding a residential property for over 2 years can apply for tax exemptions.

2. Mortgage Prepayments

Another consideration is mortgage prepayment penalties when selling a house after owning it for less than a year. You may have to pay mortgage penalties to end your mortgage contract before the stipulated time. Your lender may ask you to pay prepayments with extra penalties for retiring your mortgage so soon. The penalties can be 2 to 3% of the total mortgage amount.

3. Moving Expenses and Other Costs

Selling a house comes with different types of costs including moving expenses. You have to consider the moving costs before selling your home to plan effectively. Other costs include the expenses of preparing your house for sale, marketing costs, agent commissions, and legal fees.

Tips for Selling a House After 1 Year

Selling a house within a year of purchase is not an ideal option as it has financial implications. But sometimes there is no option other than to sell the property as soon as possible. Here are some tips to sell your house after one year of ownership.

1. Stage Your House: Preparing your house is the best thing to attract potential buyers and sell a house quickly. You can consider a professional home staging service to highlight the best features of your property and attract the best deals.
2. Home Valuation: You can opt for a home valuation service to determine the net value of your house after 1 year of purchase. The home estimation will give you an idea of how profitable it is to sell your house and whether it covers the mortgage payments and other costs efficiently. Estate Agent Power offers you a free valuation service to find the net worth of a property.
3. Price Accurately: Pricing your house competitively helps to sell a house fast and also attracts genuine buyers. Homebuyers are usually looking for houses at reasonable prices. Pricing accurately proves productive to gain profits and sell quickly.
4. Advertise Your House Online: Selling your house by creating an online listing is ideal for reaching a diverse pool of buyers from the comfort of your home. You can advertise your house for free at estateagentpower.com.