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How long do you need to stay in a house before selling it?
How long do I need to stay in a house before selling it? Is it a waste financially if I don't stay in it for a certain length of time? Thanks.
Asked By Bernard R | Charlotte, NC | 558 views | Buying | 1 year ago
Answer(14)
Lisa and Greg Harris
eXp Realty, LLC
In order to not pay capital Gains if you are making a profit in that time, it is 2 years. However, this depends on what you are hoping to accomplish. If you need to sell for a job relocation or family circumstances, I would recommend talking to an expert listing agent in your area and looking at a net sheet to determine your ultimate goal. If it is to make money for a flip, just expect to pay taxes on that.... if it is to get out even, than that depends on your market and situation.
- 1 year ago
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Scott Carlson
BRIX Real Estate
Hi Bernard, typically you want to own your home for a minimum of 2 years so when you sell it your not taxed at a higher capital gains tax rate. There are times (not often) when it makes sense to sell it before the 2 years is up, depending on what your plan is with any equity from the home. I would speak with a local realtor to get an idea on how much equity and also your tax accountant.
- 1 year ago
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Edward Davis
Fathom Realty, LLC
At a minimum of 2 years is the consensus, due to potential higher tax rate or the opportunity to where you will lose money and not profit from the sale especially if you had to finance to purchase the property. May not have enough equity built in to make it worth your while. Best bet is to seek the guidance form a tax accountant or CPA for more details.
- 1 year ago
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Mandee Sears
Keller Williams
Yes, 2 years is typically the minimum to avoid Capital Gains taxes though your account can advise you best! Good luck!
- 1 year ago
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Kristen Adams
RE/MAX GOLD
In order to avoid paying capital gains tax you need to stay in your home for at least 2 years
- 1 year ago
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Jen Cavanaugh
Coldwell Banker Realty
You will need to stay in your home a minimum of 2 years because any financial gains you make will be taxed at a higher rate. Please check with your tax accountant for the details.
- 1 year ago
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Why sell? Overall, house valuations over 30 years are going up so why sell something that is giving you free money year after year. Keep the place and use the equity to buy another property. In 30 years you will have two properties paid off. Better yet, why not double down to 4 properties paid off or double down again to 8 paid off when you retire.
- 1 year ago
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Glenda X Bozett
RELI
You will need to stay in your home a minimum of 2 years because any financial gains you make will be taxed at a higher rate. Please check with your tax accountant for the details.
- 1 year ago
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Gloria Mitchell
Wilkinson Triad Realty
No specific amount of time is required to stay in a house before selling it. You may be able to list and sell your home right away if you so choose. However, it can be beneficial to live in a house before selling it, as this gives you a chance to spruce it up and make necessary improvements.
- 1 year ago
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Stephanie Biello
Biello & Black Group
The amount of time that you need to stay in a house before selling it will depend on your particular situation and the market conditions. Generally, a home must be used as a primary residence for at least two years out of five in order to qualify for the federal capital gains tax exclusion on a sale. However, there may be additional requirements depending on the state and local laws where you live. I suggest speaking with a financial advisor or accountant to get more information about your particular situation. Additionally, if you live in an area where home values are increasing quickly, waiting longer can be beneficial as you may be able to make more money from the sale. Ultimately, it is important to consider all factors before deciding how long you should stay in a house before selling it.
- 1 year ago
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Mike Smallegan
Keller Williams Grand Rapids
The amount of time you should stay in your home before selling it really depends on a variety of factors, such as the current housing market conditions, your personal financial situation, and how long you have owned the property. Generally speaking, though, if you’ve only owned the house for an extremely short period of time (e.g., less than 1 year), then it may not be financially wise to sell it immediately because many buyers consider this a sign that something is wrong with the property or neighborhood.
Moreover, when trying to maximize profits from selling a home quickly upon purchase (commonly known as “flipping”), waiting too long can also decrease potential returns. There is no set timeline on how long one must wait before being able to effectively flip a house; however, keeping abreast of real estate trends and changes are key for success.
- 1 year ago
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Carol Syler
Premier South
Hi Bernard, I am a Charlotte Realtor and would be happy to help. Everyone is correct on the 2 years to avoid capital gains on any profit you would make on the sell of your house. Calculating capital gains can be complex, and your tax advisor can answer those questions for you.
- 1 year ago
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Michael Hudson
eXp Realty
Excise tax is cheaper if you reside in your home for a minimum of 2 years. However, I strongly recommend consulting with your accountant for a better understanding of the potential financial risk.
- 1 year ago
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Jake & Yuliana Bond
RSVP Real Estate
2 years is the consensus but really you need to do the math. Normally capital gains and the normal costs of selling the home wipe away the ability to be profitable. In the last five years in good real estate markets, we have found that rapid growth has justified selling within a year and any taxes or costs involved in the sale have been more than covered due to the sheer amount of equity gained. AGAIN THIS IS A MATH PROBLEM. So do the math for your specific situation and then make a viable decision. There is not a specific timeframe that can be adhered to everytime.
- 1 year ago
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