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Answers (7)
- hpvanc
- Contributions:2567
Keep in mind that you will still need to repay the $8,000 credit in full if you convert it to a rental. If you sell it is only up to the amount of your gains on the property, in your scenario where you appear to have appreciation you need to check the IRS rules to determine your basis gain. I have attached the links to factor the tax implications into your financial decision.
http://www.irs.gov/pub/irs-pdf/i5405.pdf
http://www.irs.gov/pub/irs-pdf/f5405.pdf
http://www.irs.gov/pub/irs-pdf/i5405.pdf
http://www.irs.gov/pub/irs-pdf/f5405.pdf
- SteadyState
- Contributions:783
Historically homes have never been regarded as an investment let alone a good investment. Over the past 130 years homes have returned about the rate of inflation - so you paid the mortgage interest, you paid the property taxes, you paid maintenance and insurance and you paid the REAs, title companies, inspectors, movers, etc. - what did you get. Historically most owners get back 1% - not a good investment because state general obligation bonds will give you one the order 2%-5% - tax free!!!
Homes are a great investment for the agents, title company, and the lenders but rarely for most citizens.
Homes are a great investment for the agents, title company, and the lenders but rarely for most citizens.
- Jim Basquette CRS, CNE, "Jim Basquette"
- Contributions:1231
It all depends on timing. With the decline we have had in the last several years, most people are not making money unless they bought about 10 or more years ago. I have had 4 personal residences that I have sold in my life and made money on all except the one I sold last month.
- bevarg
- Contributions:13
Thanks everyone for your response. Unfortunately, I have to move due to a job transfer which is the reason I am looking into selling it.
Thanks for providing the advice about renting it. I'll look into that and see how much I can rent it for.
Thanks Again!!
Thanks for providing the advice about renting it. I'll look into that and see how much I can rent it for.
Thanks Again!!
- Janey Kaplan, "JRK3"
- Contributions:1
You may be right. How much you clear on your house definitely depends on what you can sell it for and how much you have invested in it. You may want to consider renting it - IF that is an option to you - because the rental market is ON FIRE right now. If that is not a choice for you, then you may want to wait for the market to go up before you sell.
Just a friendly FYI, Realtors do not "make a profit", they earn an income. Realtors work for free until they get paid, and they work really hard - especially in a "down" real estate market. I know - I am one! For Realtors, it can be feast or famine; we don't earn regualr paychecks or have benefits, and we never know where our next job is coming from.
If you'd like an estimate of what you might sell your home for, feel free to contact me. No pressure whatsoever.
Regards,
Janey
Just a friendly FYI, Realtors do not "make a profit", they earn an income. Realtors work for free until they get paid, and they work really hard - especially in a "down" real estate market. I know - I am one! For Realtors, it can be feast or famine; we don't earn regualr paychecks or have benefits, and we never know where our next job is coming from.
If you'd like an estimate of what you might sell your home for, feel free to contact me. No pressure whatsoever.
Regards,
Janey
- wetdawgs
- Contributions:26784
The paradigm of house selling for a new gain within a year or three of purchase is something that worked for a very few years out of the last hundred. Even when the house prices are raising at the rate of inflation, the break even point is 5 years or more out. If you purchased within the last three years, you are extremely lucky you aren't underwater.
But, I do indeed agree that agents make the most and have the most to gain from fast turn over on houses.
But, I do indeed agree that agents make the most and have the most to gain from fast turn over on houses.
- Celia Butler Home Loan Diva, "At Academy Mortgage"
- Contributions:359
I personally think ... due to the market conditions it is more difficult for the house owner to make money on a house sale. There was a time when you could and I firmly believe that the time will come again. HOUSING is a good investment because for the "true" investor rates are low and it is the best place for their money with the thought being rental market is in good shape and eventually the market will turn and they will be sitting pretty. Quite frankly, I think it is a good investment for a person to have a home - roof over their head - at a low interest rate and wait out the market conditions.
Sincerely,
Celia
how do people make money on sale?
I was thinking about selling my house and it looks like I'll make a profit of only around $10k before taxes, after fees and before paying back the first time homebuyer tax credit of $8000. After that I might end up with only 2-3k in profit and the realtors get a total commission of over 20k
In the end, it looks like the realtors make more profit on my house than me. Is that normal?
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