Profile picture for user071722

Is 5 years long enough to keep a home before selling and not lose money.

I have 10 plus acres now and want to downsize my present property and home.  I want to build a new home using funds from my present home to fund it.  I will have been in my present house 5 years come November 2013.  The market is good in my area and I have a very desirable location.  My husband says 5 years is to soon to sell.  He's not the one that mows the yard though!

Thanks!
  • October 25 2012 - Robinson
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Answers (9)

Best Answer

This is kind of a tough question to answer because it entirely depends on your specific situation how much did you buy it for, did you refinance, what your market is like now and when you bought. In general, I reccomend people plan on holding a property for at leats 5 years before selling. To get an accurate idea of what your home could sell for, have a Realtor come out and do a CMAT any local Realtor will be willing to give you a value on your home even if you do not list the property with them.
  • October 26 2012
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The length of time doesn't always have a direct effect on what your home is worth. Traditionally your home will be worth more after 10 years, but this isn't guaranteed. Understand your local market, and watch the trends going on there. This will be your best indicator of when to sell and when to hold.

Let me know if you have any other questions!
  • November 30 2012
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Profile picture for Ofe Polack
Since obviously you are in no rush, why don't you ask a few listing agents to do a comparative market analysis of your property and then again next year, that way you will have a better idea of what your home is worth it in today's market.
  • October 25 2012
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It will just depends on how much equity on your home. Most of the home owners have a house from 3-5 years. As long as the market is provided, even if you guys live there for a year. There shouldnt be the hold back to hold you to live in a place you dont want to stay.
The best way is to talk to a realtor to get a local market report and check out recent sold compariable to see how much you can sell it for. Like I said earlier it has nothing to do with the time but its has to with the market value on your home.

Please let me know if you need help with the CMA. I would be more happy to help

Dixon
  • October 25 2012
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Profile picture for SteadyState
While local conditions are primary - what you paid for the property and what the price will be 5 years down the road, etc. the rule of thumb is that in today's market breaking even in five years is very difficult. 7 years is safer and 10 years is best.

For example if you bought at $1M you will have to sell at least at $1.2M to break even if you factor in the total cost of ownership - 10% for commission and closing costs and 10% over 5 years for maintenance, opportunity cost, etc.
  • October 25 2012
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Some home owners when the maintenance of their property becomes nothing but a big chore to keep up, decide to list and sell and scale down. 

Others will make a sport out of mowing their lawn by creating lawn mowing races that lawn mowing enthusiasts can participate in to help mow.




Sometimes they will relocate to an area that has less harsh winters and lower taxes. 

Often their next choice requires far less maintenance and be less of a chore to keep up and will offer a more carefree lifestyle...
  • October 25 2012
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Thanks for posting your question on Zillow.com!

Time period of ownership does not determine whether or not you will lose money.  There are a TON of different factors, market in your area, condition of the home, etc... that need to be evaluated by a local, full time Realtor.

I would research agents in your area on Zillow.com and read past client reviews of them.  If that is not enough, feel free to contact me and I can refer you to a good agent.

Best of luck!
  • October 25 2012
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I don't believe it is a question of any number or years being too soon to sell. There are two considerations here. One is what is the difference in value between what you paid for the home and what it is worth today. If you are just looking at selling at a profit, this tells you if the time is right and you can get the answer by talking to a local Realtor.

The other consideration is how much you want to get on with your life and build that new home. There is often a lot more to home selling than just a financial transaction. That is why I moved a couple of years ago at a time that a knew prices were still falling. I did not want to put my life on hold and I have never regretted that move.
  • October 25 2012
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Profile picture for Outer Banks N C
If you bought in 2008 the property might not be worth as much today as it was back then. You need to look into the current value to see if it is up, down or sideways from when you bought it. I know many of the people I sold homes to from 2003 to 2008 are now looking at valuations that are less than when they bought it. Good luck with your plans.

Tim
  • October 25 2012
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