How Long Should You Live in a Home Before Selling?

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Real Estate

How Long Should You Live in Your Mulberry, FL Home Before Putting It on the Market?

Knowing when to sell your Mulberry home can be a bit of a challenge. While there is no hard and fast rule as to how long you should live in your home, some people practice the “five to seven-year” plan.

Although the “five to seven-year” plan may work for some homeowners, it may not be ideal for your individual goals and circumstances. Perhaps you have outgrown your house and need to move to a bigger place now, or maybe you are banking on the proceeds from your home’s sale to fund your retirement? Regardless of the reason, the decision to stay or sell is totally up to you.

With that said, it’s important to keep in mind that waiting for the right time can help you build up home equity before buying a new home. On the other hand, if you sell your house too soon, you could walk away with pretty much no equity. If the housing market collapses, or if you overpaid for your home, you could end up in the red.

To determine how long you should keep your Mulberry home before selling, you can always discuss your situation with a knowledgeable Mulberry real estate agent — like Lisa Matheny. But before you do, here are three important factors to consider:

1. Capital Gains

Depending on how long you have lived in your Mulberry home, you may be required to pay taxes on the money you make when you sell it. 

If you want to (legally) avoid capital gains taxes on your home, you’ll have live in it for at least two of the past five years.

2. Transaction Costs

In almost all cases, selling a house in Mulberry, Florida costs money — about 10% of the selling price. So, if your home sells for the median price of around $300,000, you could expect to pay around $30,000 in transaction costs. 

Before attempting to sell your house in Mulberry, Florida, you should find out exactly how much you’ve paid toward it. You should total the money you paid as a down payment, closing costs, and mortgage payments toward your home. These are important numbers to be mindful of because you don’t want to break even (or take a loss) when selling your home, if you can avoid it.

3. The Housing Market

Keep an eye on the Mulberry real estate market, as it tends to shift between favoring buyers and favoring sellers. If your Mulberry real estate agent studies the market for peaks and valleys — which indicate the ideal times to buy and sell a home — you will be better equipped to sell your home at a profit.

Again, if you plan to live in the house for about seven years, you will have a better chance at a higher return on investment (ROI). According to the National Association of Realtors (NAR), the average American homeowner lives in their home for 13 years. NAR also found that the average homeowner sells after eight years in many cities where homeowners do not tend to stay as long. It is no coincidence that these numbers roughly correspond to the five to seven-year housing market cycle that many homeowners in Mulberry adhere to.

Looking for the Top-Rated Real Estate Agency in Mulberry, Florida?

If you’re looking for the highest-rated real estate agent in Mulberry, Florida, look no further than Lisa Matheny, Realtor with the Dalton Wade Real Estate Group. Lisa can handle every aspect of your home sale — from setting a price to negotiating with buyers to closing — ensuring a successful and profitable sale. Contact Lisa Matheny today at (863) 412-6633 to get started.