I bought this home in October '06. My wife and I realized this town (Pahrump, NV) isn't really for us. We'd like to move, but don't want to damage our credit or hurt ourselves in any other way. We don't know much about real estate or home ownership.
2007-08-07 17:06:58 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You can sell it the same day you buy it. Things you want to be aware of include: it will cost you about 8% of the selling price in commissions, fees and taxes (thats $40k on a $500k sale); check your mortgage to see if there is a pre-payment penalty, that's an additional cost; for the $500000 capital gain tax exclusion you must occupy the house for 24 of the last 60 months; if you lose money on the sale it is not tax deductable.
Sorry to tell you this but I have several friends who sold their homes in So Cal and have discovered they are unhappy where they are but can't afford to move back.
2007-08-07 17:35:47 · answer #1 · answered by HPH 2 · 0⤊ 0⤋
The simple answer to your question is that when escrow close you are in a position to sell your property at that moment in time.
To solve your credit concerns, make sure that who ever you sell your home to get a brand new loan so you an pay off your existing mortgage.
Also check with your lender to find out if there is a prepayment penalty for selling your home. Most lenders charge a prepayment for a refinance, but not for a sale.
There are a few tax consequences,but not really big ones. You should check with your tax consultant concerning the tax that might be involved in this transaction.
In the United States at this time there are certain areas where property values have actually dropped. That means that if you purchased your home for $350,000, if you purchased this property today it might only be worth about $325,000 or so.
Make sure that you get someone to give you the approximate price you can get from your house before you place it on the market.
You might want to look in the telephone book and call an appraiser to give you an estimate. This is normally a free service, don't forget who helped you when it becomes time to actually get an appraisal done on the property.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-08-07 17:39:29 · answer #2 · answered by loanmasterone 7 · 0⤊ 0⤋
You can sell your home any time after you buy it without it affecting your credit score. Creditors like to see loans being paid off, so this could actually help your score by moving out.
From a tax perspective, since you are married you would normally be able to take 100% of the profit (gain) from the sale of your primary residence tax-free up to 500K. However, you generally have to live there for 2 years to get this exceptional tax break. There is an exception. If you find a new job more than 50 miles away from your home, you can claim the tax free benefit up to the prorated amount based on the two years. In your case, if you move out in October that would equate to a 250K or less tax exemption.
2007-08-07 17:23:20 · answer #3 · answered by derblitz 2 · 0⤊ 0⤋
Contact your mortgage lender to discuss your case, sometimes the company will have 'tied you in' to their deal for a certain term.
2007-08-08 02:43:22 · answer #4 · answered by JOANNE C 3 · 0⤊ 0⤋
And the same question comes up again
2016-08-24 11:24:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋