Skip to main content

Sell house before 2 years of ownership?

I’m a first time home buyer who inherited 50% of a house in CA and bought out the other half through refinancing. I put a good amount of money into fixing the house up (around $150,000) because it was pretty beat up after 40 years, I also turned the garage into a junior ADU. I’m getting low on cash and am unsure what to do next. Construction was a lot more than expected and took a lot longer as well. I decided I’d rather move to another state and buy a cheaper home cash and forgo a mortgage. I’d like to put the house on the market as soon as possible but I won’t hit the two year capital gains requirement until March 2025. It’ll cost me about $30,000 till March in mortgage and property taxes. I have about $600,000 equity in the home and with the $150,000 in improvements puts me at around $750,000 equity, my mortgage has about $428K left on it. I’m curious what the taxes would be if I sold before the two year mark and if it’s worth to sell it now or wait until March of 2025? The home is appraised at $1,061,000 but hasn’t been reassessed with the new improvements yet. I think I can sell for at least 1.2-1.3 million with the ADU making it a multi family dwelling now. Tried reaching out to TAX attorneys but to no avail, was hoping someone with extensive knowledge could give me their opinion on what to do next? Thank You

submitted by /u/Possible_Argument812
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1dy2714/sell_house_before_2_years_of_ownership/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Question With Tricon "Pending ID".....

My wife and i, along with 2 other peopl applied to rent a house, and our application says "Approved, Pending ID". Anyone else know what that means? Do we pretty much have the place or are we missing something? submitted by /u/Itskrueger [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1orixqj/question_with_tricon_pending_id/
Post a Comment
Read more

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more