Is it Too Soon to Sell? | Monday Minute

How long should we plan to stay in our house before selling?  This is a question I get a lot.First off, it's surprising to know that many people only live in a home 2-4 years before selling and moving on to their next home.  This may be due to a handful of different factors.  Maybe you are moving for a new job, you need more space, or less space, or your life style has prompted a change in your home needs.There are two main factors to consider when thinking about when is the right time to sell your home.  The first, is the capital gains tax.  If you have lived in a home as a primary residence for 2 out of the past 5 years, when you go to sell, you don’t have to pay capital gains taxes on the first $250,000, or $500,000 if a married couple, on the profits from the sale.  The average savings on capital gains is 15%, which is a considerable amount of money.The second factor depends on the current value of your home vs what you owe left on the home.  Depending on the market, we often see an increase of value on homes between 2-4% each year.  So after owning for 2-3 years, most home owners will see a gain in profits.  However, if we were experiencing a slower market, or you paid a high premium for the home when you purchased, that timeline may be extended another year or two depending.If you have any questions about when is the right time to sell your home, give us a call.  We look forward to helping you!