It takes an average of 56 days to sell a home. But, most sellers what this process to go quicker. And, the amount of time it takes to sell a home depends on the real estate market you’re looking in and the real estate website you’re using.

So, if you’re looking to sell your home and/or find a new one, it’s important to look in the right places. When it comes to buying and selling homes, people often look at Orchard, Opendoor, and Offerpad.

But, which one is the best? Which website wins in the war of Orchard vs Opendoor vs Offerpad?

Orchard vs Opendoor vs Offerpad

Orchard, Opendoor, and Offerpad are all real estate websites that make different offers for individuals who are selling homes. In short, they’re all real estate investors. The most popular term is ‘iBuyer.’

iBuyers are online real estate purchasers that exist in multiple markets across the country.

All of these iBuyers are extremely popular with different sellers for different reasons. And, to evaluate which one is best for you, we’re going to compare and contrast six different factors:

1. What homes qualify for an offer
2. Available markets that the site focuses on
3. How long it takes to get a cash offer
4. How the site handles the closing process
5. Maximum proceeds to the home seller
6. Additional fees that the site may charge

Let’s jump in.

Orchard Real Estate

You may have known Orchard as its previous name, Perch. Orchard is an iBuyer that’s based in Texas.

Orchard focuses on homogenous homes that the builders completed before 1978. They’re also looking for homes that have a value between $125,00 and $500,000. You can use our free home value estimator to check the value of your home.

Orchard makes money by making a difference between buying and selling each home. Because of this, sellers should expect to receive about 80-85% of their home’s value. This is after fees, minor repair costs, and resale pricing.

If you’re only using their platform to sell your home, Orchard Realty charges a 6.9% fee.

In sum, Orchard buys a home below market value because of repairs and renovations that they may need to. They then renovate the home and resell it for a profit.

You should keep in mind that Orchard does not represent consumers when selling homes. So, they aren’t required to give you a good offer.

Orchard may buy your home quickly (within a few days), but you will have higher fees because of the quick buy.

If you decide to purchase a home from Orchard, the closing process may take a few weeks. This depends on how long it takes to get the home inspection and financing underway.

If you’re looking for a real estate buyer across San Antonio, Dallas, Fort Worth, and Austin, Orchard may be a great choice for you. This is especially if you’re looking to sell your home sooner rather than later.

Opendoor Real Estate

Opendoor is an iBuyer that exists in multiple states across the US. It focuses on homogenous homes that builders completely after 1960. These homes should also fall between $125,000 and $500,000.

To value the homes that they’re looking at, Opendoor discounts the estimated retail value after they fully renovate the home.

Similar to Orchard, Opendoor makes money by the difference between buying and selling each home. Individuals selling their homes to Opendoor should expect to receive 80-85% of their home value. This is after fees, minor repair costs, and resale costs.

Opendoor makes offers within days or even hours. But, this process comes with additional fees. These go from 6% to 12% depending on how risky your property is.

However, Opendoor does cap its service fee at 5%. So, this keeps the fees down in comparison to other iBuyers.

Opendoor operates in many places across the US, including the following cities:

• Phoenix
• Dallas
• Forth Worth
• Las Vegas
• Atlanta
• Orlando
• Raleigh
• Durham
• San Antonio
• Charlotte
• Nashville
• Tampa
• Minneapolis
• St. Paul
• Houston
• Sacramento
• Riverside
• Denver
• Portland
• Austin

With this many options, you are more likely to have access to Opendoor rather than Orchard.

Offerpad Real Estate

Offerpad is another iBuyer that makes it easier for homeowners to sell their homes. Some sellers have closed with Offerpad in as few as ten days. 

Offerpad looks for homes that are single-family structures. Builders must’ve finished the home after 1960. And, the home must have a value that is no less than $500,000 to $600,000.

Additionally, Offerpad stays away from homes that are no greater than one acre of land.

However, just like Orchard and Opendoor, Offerpad fees for this quick service. Offerpad’s service fees can be as high as 10%. This makes it one of the most expensive iBuyers out there. But, it’s still popular because of its quick service.

So, if you’re not too worried bout the price, Offerpad may be a great choice for you. And, it’s located in a variety of areas in the following states:

• Alabama
• Arizona
• Florida
• Georgia
• Nevada
• North Carolina
• South Carolina
• Texas

Offerpad also offers a unique moving service. It’s free for customers as long as you’re relocating within 50 miles of the property.

Plus, sellers can choose the closing date that they want. And, they can stay on the property for up to three days after the closing date if they need to.

But, for some, the higher fees may completely turn them off from this service.

Another downturn is the fact that you can’t counter the offer that Offerpad gives you. If you don’t like the offer that Offerpad gives you, then you have no option but to reject it completely. It’s like a “take it or leave it” policy.

Which Real Estate Website Is Right for Me?

Now that we’ve compared and contrasted Orchard vs Opendoor vs Offerpad, it’s time to decide which one is the right pick for you. With any decision like this, it ultimately comes down to what you want to do.

There are a few main things that you should be thinking about:

1. The money
2. The timing
3. The personability

These three factors are going to play a big role in helping you decide which one of these real estate websites is the right one for you. So, let’s talk about it.

1. The Money

Obviously, everyone cares about money when it comes to buying and selling a house. Both sides what the best deal that they can get. So, the sellers push the number higher and the buyers push the number lower.

The agreement all depends on how much either side is willing to give up.

When it comes to iBuyers, sellers are at a disadvantage. With all of these iBuyers, you aren’t likely to see an offer of more than 85% of your home’s actual value. 

Meanwhile, buyers get to enjoy a price tag that comes with newly renovated features.

Plus, sellers have to incur plenty of fees. This is especially if they’re looking to sell faster. The faster they want to sell, the more fees they’re going to have to pay.

If your most important factor is money, Opendoor is a great choice with their capped service fees.

2. The Timing

Time can become important to those who are trying to move out of their current home within a specific time frame. On the other end, you may have people who are looking to move into their new home quickly, too.

The house buying and selling process take time, but not a lot of people are willing to wait. So, they’d rather pay those higher fees in exchange for the guarantee of a quick process. It’s essentially giving money in exchange for saving time.

We always recommend that you start several months earlier than the day that you want to have everything completed. This will give you plenty of time to have everything in order before the day that you’re moving in/out.

But, this isn’t always so perfectly planned. It could be because of a job change, a family emergency, or another kind of time-pressing problem. In these cases, people may need to move quickly.

If your most important factor is timing, Offerpad may be the right iBuyer for you. They have the ability to get you moving in as little as ten days.

3. The Personability

Some people enjoy having someone around to show them the ropes. Unfortunately, iBuyers are digitally-based. So, it’s very hard to get a digital experience.

However, you may be too worried about moving in or out that this personability doesn’t really matter to you. It may be better to have cut-and-dry interactions so that everything goes quicker.

The closest thing you’re going to get to personable is Orchard. Because they’re only located in Texas, you can enjoy closer interactions than from iBuyers selling and buying across the nation.

Selling Your Current Home

When it comes to the battle of Orchard vs Opendoor vs Offerpad, the winner comes down to your determining quality. The right iBuyer for you is not necessarily the right iBuyer for someone else.

But, if you’re interested in checking out even more iBuyers, look at our list of top iBuyer companies. We can help you find one in your area.

The post Orchard Real Estate vs Opendoor vs Offerpad: How Do They Compare? appeared first on iBuyer Blog.

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Selling a house can be exciting, but complicated. The laws for buying and selling your home are different in every state, however, there are some key elements that stay the same.

At this point, it’s likely you’ve discovered you’re required to offer a seller’s disclosure to your potential buyers. But what do you have to disclose when selling your house? What is a seller’s disclosure, and how do you put one together?

In this complete yet simple guide, you’ll learn everything you need to know about your legal requirements and the disclosure rules you must follow.

What Is a Seller’s Disclosure?

During the selling process, you may attract a few potential buyers who decide to put an offer on your house. Before you get to this point, you’ll have needed to formally go through a seller’s disclosure process. This process is to ensure that a buyer is fully aware of what they are buying before they make an offer.

A seller’s disclosure is essentially a document that acts as a contract between the seller and buyer. It includes all the information legally required to disclose. The seller must include all this information to the best of their knowledge and allow the buyer to review it.

Agents, sellers, and buyers can all discuss these issues throughout the selling process. If all parties agree to the information provided and decide to move forward, they will sign the document.

Seller’s disclosures came about after several legal issues with buyers obtaining property or buildings only to later realize there were serious issues not addressed by the sellers. For example, the Florida Supreme Court handled the Johnson v. Davis case in 1985 by ruling that sellers would retain legal liability for issues not disclosed to buyers.

In other words, if you withhold information about issues with the building or property, you will be held legally responsible later.

When Does a Seller’s Disclosure Happen?

Seller’s disclosures are extremely important in the house selling process and must be available to potential buyers. Homeowners must prepare these documents once they’ve put their house on the market. If you have a real estate agent, they will typically prompt you to prepare a seller’s disclosure once you’ve signed a contract with them.

Once the seller’s disclosure is complete, you can begin showing your house to potential buyers. In some states, the seller’s disclosure must be available to any potential buyers that ask to see it before you can move forward with any offers. In many others, you can provide the disclosure after you accept an offer and allow the buyer a chance to back out.

How Do You Give a Seller’s Disclosure?

Each state has its own requirements for seller’s disclosures, which means you must consult with those laws when preparing the documents. You need to make sure you get the proper forms for your state and fill them out according to your state’s laws.

Not every state allows your agent to assist you in preparing the seller’s disclosure. For example, California real estate agents are not allowed to be involved in helping you fill out the forms. If you require assistance, you’ll need to go to a real estate attorney for help.

Once the forms are complete, you’ll be able to offer them to potential buyers. If you have an agent or lawyer, they’ll be able to help you offer them to buyers. Otherwise, you can offer them yourself.

What Do You Have to Disclose When Selling a House?

Every state is different when it comes to legal requirements for what must be included in a seller’s disclosure. Many states have specific requirements due to past legal battles that have forced new policies. You’ll need to refer to your state’s exact requirements or speak with your agent or lawyer.

In most cases, the items listed below are required to be included.

Repairs Made

Your home and property’s history is an important section of information to be disclosed to buyers. Since you have been living there, your knowledge of the property is much more than the buyer’s knowledge. It is important for them to know which parts of the property are new and which parts are reaching their likely expiration date.

For example, if you have recently had a new water heater installed, this could add value to the property because it means the buyers will not have to replace it in the near future. On the other hand, if they notice the roof has not been repaired in 18 years, they will know to expect a costly repair sooner rather than later.

Knowing what repairs have been made also gives a buyer insight into what problems the property has had in the past. It will help them understand if there are certain issues to watch out for after they close on the home. It will also help guide them in assessing the home during the inspection.

Repairs Needed

In many cases, not all repairs are made before a buyer makes an offer. Sellers might choose to make these repairs before moving day or leave them to the buyer to handle.

The buyer can choose to buy a home as it is or agree to certain repairs not being made before closing. Regardless, the seller must disclose the repairs that need to be made to the home.

Remember that you would want to know what repairs need to be made before you made an offer, too. A buyer will need to assess not just the value of the home, but what money they will need to spend after closing to make sure the home is livable and comfortable for them. These future expenses will play a part in how affordable the home is for them.

Water, Mold, and Termite Damage

Among other issues, water, mold, and termite damage can cause serious structural issues that you must disclose. Leaks and flooding and can threaten the structural integrity of the home, and so can pests like termites.

Mold often follows water damage but doesn’t always have to. Unchecked mold issues can damage the home and threaten the health of the homeowners.

Once disclosed, it is likely that buyers will request repairs before closing. If not, they will at least need to know about the issues before they move in.

Appliances and Other Essentials

In some cases, a seller may choose to take appliances with them, or appliances are broken or are missing. They may have chosen to take light fixtures, blinds, and other parts of the home that would otherwise be there.

In the cases of appliances and fixtures in the home, the seller must disclose whether they will be missing upon the buyer’s arrival. You can find lists of these essential appliances and fixtures according to your state. 

Defects of the Property

It is also typical for buyers to disclose the threats to the safety of the property and homeowners. Each state has its own set of threats from natural disasters that you should discuss. 

For example, Florida is prone to hurricanes and flooding due to its location on the coastline and tendency for flat ground. California is prone to earthquakes, landslides, and wildfires. The midwest gets frequent tornados.

Each state will have its own guidelines for disclosing property defects according to these threats. Buyers can often ask for information about flood zones, for example, to find out if the property is at a higher risk for water damage.

It’s also very important to list health hazards, including any type of risk for exposure to radiation or hazardous materials like asbestos or lead paint.

This information will help potential buyers understand what types of insurance they need to prepare to buy and what repairs are likely in the future.

Neighborhood-related Issues

As the homeowner, you will have noticed issues with your neighborhood that you should disclose to buyers. If there have been any disputes regarding your property or issues with noise or odors, you should discuss them. You should also make buyers aware of other nuisances caused by industrial or commercial zones nearby.

If you are part of an HOA, or homeowner’s association, you should include this in the disclosure. The buyer will need to take on HOA fees and follow regulations set by the HOA once they move in.

Each state has specific issues that are common to the area for being regular neighborhood nuisances. Some areas are close to military bases and must deal with gunshots. Other areas are close to farmland and must deal with the noises, sights, and odors related to farming.

Some areas even have historic districts will special limitations on renovations and repairs to property. You will need to disclose these limitations.

It’s important to check with each state’s specific list of nuisances to be sure you’ve covered them in your disclosure.

Limitations of Land Use

If there are limitations on the use of your land, and there likely are, you’ll need to include these in your seller’s disclosure. Limitations of land use include zoning regulations and easements. It also includes any restrictive covenants. 

For example, it’s probably that your buyers will not be able to use the property for commercial or industrial means. They might not be able to build certain structures on the land. You should also make them aware of property lines.

Liens on the Property

Above all else, it’s very important to disclose any financial issues regarding the property. The buyer must know if they are putting an offer on a property that has been in bankruptcy or has any outstanding liens. By buying the property, they are exposing themselves to the liability of these legal issues. 

Deaths That Occurred on the Property

Not all states require reporting deaths if they occurred due to natural causes. Further still, not all states require reporting suicides or deaths that came from accidents not related to the property. Many buyers, however, are deterred from buying homes due to superstition or other reasons and might ask.

Deaths that should be reported are deaths that were due to violent crimes and deaths caused by the condition of the property. These deaths are directly related to concerns that would also affect the home buyers. 

Buyers will be grateful to know if the area is prone to violent crime or if the property has issues that can be hazardous.

The Miscellaneous Section

If you’ve made it through the forms without disclosing information that would seriously threaten the value of the home or the homeowners’ lives, you still need to disclose it. You should do so at the end of the seller’s disclosure forms so that you are not held legally responsible.

Do All States Require Seller’s Disclosures?

All states have some form of legally required disclosures for selling homes. At the very least, you will need to provide a seller’s disclosure form regarding the presence of lead on the property. All states also have recommended forms you can choose to use, or your real estate agencies will have forms available.

A few states have required forms you must fill out as your seller’s disclosure. Not all recommended forms cover all the legal requirements, so it’s important to review your state’s laws for disclosure before moving forward. Make sure to add any disclosures required that aren’t already included on the form. 

Can Disclosures Replace Inspections?

In no case should a seller’s disclosure replace a home inspection. While disclosures are great for pointing out key issues, buyers should still move forward with a home inspection to investigate these issues further. The home inspection might also find new issues that the homeowners were not aware of when filling out their disclosure forms.

Looking to Sell Your Home Fast?

Does all this real estate jargon make you feel a bit helpless? Tired of the process? It can be fast and free to find out what your home is worth with just a few clicks.

All you need to do is enter your home address into the iBuyer.com search to get results. You can then set up a free account to list important information about your property for potential buyers to review.

iBuyer.com will match potential buyers to your property so that you can start receiving cash offers for your home as-is.

Find Out the Value of Your Home

So, what do you have to disclose when selling a house? The short answer is anything that could threaten the value or safety of the property and homeowners. Seller’s disclosures are important for every home sale, but it’s possible to get away with no staging, open houses, or repairs.

Move on your terms with instant cash offers for your house. Enter your address to find out what your home is worth today!

The post What Do You Have to Disclose When Selling a House? appeared first on iBuyer Blog.

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If you’ve typed “how to sell my home” into the search bar and immediately closed the browser because of the overwhelming amount of options, then you’re in the right place.

Selling a property, at first glance, can be an exhausting process. Between renovations, listing, finding an agent, and tours, the process can be daunting. Don’t forget the addition of moving and finding a new home!

Luckily, there are multiple platforms out there that will help you sell your home fast and easily.

We’ll be focusing on Compass vs Opendoor in this article. Keep reading to find out which platform is best for selling your home!

What Is an iBuyer?

Before discussing the different home selling platforms out there, let’s talk about what an iBuyer really is.

An iBuyer is a company that makes an instant offer on your home through an online platform. iBuyer platforms provide a quicker and less involved option for busy people trying to sell their homes.

While each iBuyer platform is slightly different, the main idea for all companies is to estimate the value of your home and then make an instant offer. The offer is not set in stone, though. This offer is usually contingent upon renovations.

Additionally, many of these companies charge fees to offset their agent referral fees. We’ll talk about those when we break down Opendoor vs Compass costs later.

If you want your home to be sold quickly and don’t mind paying a bit more for ease of use, then an iBuyer is the perfect option for you.

Compass Overview

Compass Real Estate, at first glance, looks just like a traditional real estate model.

You type in your information, and then you will be connected with a local agent. The agents at Compass are experts in your area, so they come with a plethora of knowledge. 

In addition to that knowledge, though, is a technological innovation to help you sell your home faster. A team of software engineers and data scientists work to give you specific market insights on your area in an easy-to-use dashboard.

These insights are pivotal in Compass’ mission to “make the search and sell experience intelligent and seamless.”

In addition to the technological advantage of Compass, they also offer a service called The Compass Concierge service. We’ll talk about that more in-depth next.

Compass Concierge Services

The Compass Concierge program is the service that makes Compass different from the other real estate listing sites.

The Compass Concierge program takes extra steps to sell your home faster (and possibly at a higher price) without you even having to lift a finger. Compass covers the upfront renovation costs and doesn’t charge you until the close of escrow.

For example, Julia, a home-seller in Oakland, used the Compass Concierge program and only had her home listed 12 days before it was sold. Additionally, her home sold for 47% over ask.

The ease of listing that Compass Concierge provides is also the platform of Opendoor’s model. Let’s discuss Opendoor’s platform now.

Opendoor Overview

Opendoor is an online iBuyer platform that buys and sells your home directly.

After submitting your home on Opendoor, you can expect a cash offer on your home within days or even hours- but this offer is highly contingent upon renovations.

Additionally, Opendoor’s offers are only valid after a home inspection. Your home must be built after 1960 and have a value between $125,000 to $500,000 to qualify for Opendoor’s services. Once your home has been inspected and fits these guidelines, Opendoor takes the work out of your hands! 

If you don’t have time for insights, and just want a less-involved way to sell your home, Opendoor is a perfect solution for you.

Compass vs Opendoor

While both platforms offer similar perks for sellers, your home may be better suited for one over the other. Let’s discuss how these platforms line up against each other.

Opendoor charges a flat 5% service charge and a 1% closing fee charge, in addition to the repair costs (which are based on a home inspection).

Compass charges based on equity—if the services requested on a home under $3 million are 5% or less of the list price, then you are guaranteed to be approved. If your home is worth more than $3 million or needs repairs worth more than 5% of the list price, then you must show proof of 4x equity in the home.

Compass, however, does not charge other fees on top of the improvement/staging costs. While this may be enough to sway you, it is important to get a quote from both platforms, as the cost of renovations could be very different between the two.

Reaching out for an offer is free for both platforms, so do your due diligence and give each one a try before you decide!

Let iBuyers Help You Sell Your Home Fast 

Selling a home doesn’t have to be exhausting. iBuyers make the real estate buying/selling process easier so you can easily move on to the next big phase of your life.

When it comes to Compass vs Opendoor, it all depends on your specific home. Using iBuyer’s Free Home Value tool, you can decide which platform will be better suited for your needs (and wallet!)

If iBuyers spark your interest and you’d like to learn more about selling your home to one, check out our website and get matched with the best iBuyer for your home!

The post Compass vs Opendoor – How Do They Compare? appeared first on iBuyer Blog.

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Deciding to place your home on the market is a big step, and the process of selling your home can be drawn out. With jobs, kids, and the everyday craziness of life, you may be wondering how to sell your house while still living in it?

Fortunately, millions of homeowners have done just this. It is possible to do and to do easily. 

How To Sell Your House While Still Living In It

Staged homes are beautiful – but unfortunately, very impractical to live in. And they can also be expensive. If you plan on staying in your home while selling your house, it might be worth it to take a few extra steps to make your life easier and less stressful.

Pack Up Boxes

You plan to move anyways, right? This is a great time to de-clutter and begin putting things away. Go through each room and create three piles: donate, keep and throw away.

This is a great way to minimize the number of things you will be boxing up and taking to your new place. Hopefully, your home will not be on the market for very long; only keep out what you really need for that short amount of time.

Spend Time Away

This is a great time to go on that family trip you’ve been planning forever. Employ a Real Estate Agent you can trust and hit the road! Organize and tidy up before you leave, and hopefully, by the time you return, you will have a solid contract in your hands.

You don’t necessarily have to take a week-long getaway either. Schedule a few day trips to some local hangouts. Stepping away during the day will reduce the stress you may feel trying to keep everything looking perfect at home.

Employ Home Services

First impressions are everything. While your house is on the market, it may be wise to hire someone to come a few times a month to clean the house or take care of the yard maintenance.

This is a good way to ensure that your home will stay looking its best while on the market and attract the most buyers possible!

Make Repairs

Now is a great time to finally tackle that honey-do list you’ve been putting off forever. Leaving repairs for potential buyers to take care of will only hurt your chances of getting your desired asking price.

During the home-selling process, a home inspection will be done. It might be wise to order your own inspection before listing and take care of the noted repairs ahead of time.

This way, your agent can present potential buyers with a clean inspection, which will make your home look steps above the rest.

Depersonalize Your Space

Potential buyers want to picture themselves living in the home as soon as they walk in, so it could be a good idea to remove anything that would hinder this.

Large family photos, personal memories, items with names can all be taken down and placed in boxes to be moved into your new home. 

This step can also help protect your family’s security. Taking down photos of your family won’t allow buyers to know whose home they are walking into. This can provide a big sigh of relief for parents.

Send Pets Away

We love our pets, but they can make keeping a house clean just as difficult as kids can! Aside from shedding hair, many pets will leave a lingering odor that can immediately turn potential buyers away.

If possible, consider boarding your pets or sending them to live with a family member or close friend while your home is on the market. Remove any trace of a pet from your home, including litter boxes, kennels, toys, and repair any damages that your pet may have caused.

This will be a huge relief for your agent and any buyers that come to showings as well. It’s never ideal for dealing with someone else’s pet while you are trying to do a walkthrough of a home.

Preparing for Showings

Other than preparing your home to be listed ahead of time, there are a few things you can do before each show to make your home feel welcome to buyers.

Quick Tidy

Develop an easy routine to do before each show. Run through the house and pick up anything off the floor, stick dishes in the dishwasher, wipe down surfaces and make sure beds are covered!

This is the moment you will be so glad you decluttered and boxed up as much as you could! Having fewer belongings in the home will only make this quick tidy easier.

Leave the House

Buyers want to feel comfortable in your home. Take a walk around the block or take care of a few errands during showings. 

If you are hanging around, they may not relax and never get “that” feeling they need to move forward and make an offer.

Communicate With Your Agent

Are you running behind from work or unable to make sure your home is ready for a showing? Let your agent know, and maybe they can help out!

Pushing a showing back a few minutes to allow yourself to bring your home up to its show-ready level is totally worth it.

Smell Is Everything

Maybe you love cooking homemade Cajun food, or perhaps you’re known for your seafood. Unfortunately, this may have to be put on hold while you are selling your home.

As much as you and your family love these meals, they can leave a lingering smell throughout your home for one or two days.

Take this opportunity to try out the local eateries in your community, or maybe the new area you will be moving to!

Understanding a Contingent Contract

You got an offer! But it’s contingent. What does that even mean? It is important to not only look at the amount of the offer but the stipulations of the offer as well.

A contingent offer on a real estate purchase oftentimes is one in which a buyer must sell his existing home before closing on a new one. If the buyer’s home does not sell before a specific date, the contract will then be terminated.

Should You Accept A Contingent Offer?

Contingent offers are not at all out of the ordinary, but should you trust them? There is never a guarantee that the buyer’s current home will sell. But then again, there is never any guarantee that any home will sell.

Real estate is all about collecting as many facts as possible and making the best decision to move forward. Ask questions about the potential buyer’s current home and talk with your Real Estate Agent about its ability to sell.

Is the home in a desirable neighborhood? Is it priced correctly? What is the current market like for that type of home, and will it hold up your home sale?

Utilize this contingent offer as leverage in negotiations. Perhaps this will help you get the sales price you want. It may take a little longer, but if you have the time, it can help you out in the long run.

Cash is King

In today’s real estate market, there is nothing quite like getting a cash offer. When you are selling your home, this is usually the most simple escrow process and can mean a really quick close! Without a lender involved, many steps that can take a few weeks will not be necessary.

Ask for proof of funds before accepting an offer to make sure you deal with a legitimate buyer. After the confirmation, the escrow process will begin, and then you can close!

Side-Stepping the Listing Process

Listing your home can be a long and difficult process. Quite a bit of money can be required to get your home up to where it needs to receive maximum value. Fortunately, there are ways around this. Companies like iBuyer.com will make instant cash offers to purchase your home.

Understanding iBuyer Companies

The great thing about utilizing iBuyers is that they will generally offer you fair market value for your home, compared to an investor looking to flip a house for profit.

This process will get you a qualified home sale without the headaches of inspections, appraisals, and showings. This is the ideal answer for homeowners with hectic schedules and not much time to devote to the real estate process.

Receive Your Free Home Valuation

If you are looking for a quick and easy sale, iBuyer.com is definitely for you. Our home-buying process is simple and proven to work.

Receive a free home offer within 48-hours, chose your preferred closing date, and take a deep breath, knowing you won’t have to deal with the headache of figuring out how to sell your house while still living in it.

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In the United States, the average homeowner stays in their homes for 13 years before selling. However, in some metro areas, the average homeownership duration can be as little as six years, while in others it can be as high as 18 years.

There are a number of benefits to buying a home versus renting one, including a pride of ownership, a sense of belonging to community, and a feeling of stability. On top of that, there can be financial benefits to ownership over renting, though the former does typically end up being more expensive than the latter.

People who are more nomadic or restless aren’t ideal homebuyers, as it is financially costly to buy and resell homes without allowing time to build equity, appreciate in value, and recoup the costs of buying.

That being said, life can throw us unexpected curveballs from time to time. If you recently purchased a house but your circumstances have changed, you might be wondering “how soon can you sell a house after buying it?” Let’s take a look at what you need to know so you can make an informed decision about selling your home.

How Soon Can You Sell a House After Buying It?

You are free to sell your home at any point after the closing. That being said, doing so isn’t necessarily without consequences.

Many of the costs of selling your home soon after purchasing it are quantifiable. These include closing costs, capital gains taxes, real estate agent commissions, and more. We’ll take a look at the details of these costs later in this article.

On top of the potential financial consequences of the selling process for a home you just bought, there can also be an emotional toll in the hassle of dealing with different mortgage lenders.

How Soon Can You Sell Your Home Without Losing Money?

There are definitely financial risks to selling your home soon after buying, but that doesn’t mean you might not have good reason to. You paid closing costs during the buying process that you can’t recoup without the house appreciating in value or without gaining equity. You’ll also want to consider moving expenses and selling costs.

You’ll want to learn about the breakeven point before you decide whether or not to sell. The breakeven point is the moment when you can expect to make back all of the money that you spent on the purchase of the property. In a typical market, you’ll gain equity as you pay the mortgage and your home may appreciate, which can offset the cost of ownership as well as closing costs.

The Main Reasons For Selling Your Home After Recently Purchasing It

There are a lot of different reasons that might compel you to put your house back on the market after you just bought it. These might be personal, financial, or professional reasons, some of which might be unplanned and unexpected.

Typically, most buyers expect to stay in the home they buy for at least eight years. However, things like marriage, childbirth, or retirement might instigate a need to sell your home and relocate. Some additional reasons that people might want to move sooner than expected include:

• Job relocation: If you get an offer you can’t refuse, you might find yourself considering relocating soon after buying your home
• Relationship change: If marriage or the dissolution of your marriage occurs shortly after buying a house, you might choose to sell your home
• Caretaker responsibilities: A sick child or an aging parent might prompt you to relocate
• Financial concerns: If your job status, income, or responsibilities have changed, you might need to sell your house to suit your new financial situation
• Unmet expectations: Sometimes you might find that your new home doesn’t suit your needs
• Neighborhood or maintenance issues: If neighborhood crime is on the rise or your home has more costly repairs than you expected, you might decide it’s better for you to move than to stick around

These are only some of the common reasons someone might sell their home soon after buying it. Only you can decide whether the reasons for leaving outweigh the potential consequences of selling so soon.

What to Consider Before Selling a House You Just Bought

There are a number of different factors you’ll want to consider before you list your house for sale again. There’s no right or wrong answer here, but it’s worth understanding the costs of both the buying process and the selling process.

What Is the “Five-Year Rule”?

A general rule of thumb is that sellers won’t break even on the initial investment they made if they don’t stay in the home for at least five years. This rule derives from the notion that the transaction costs, home improvement costs, and appreciation timeline won’t be recouped until five years have passed.

However, this is, after all, just a general rule. For example, the current real estate market in some locations is a hot seller’s market, with rising home prices and competitive bidding wars. It’s certainly possible that your recently purchased home could turn you a profit in the right neighborhood even when you factor in all of the associated costs.

Appreciation

Real estate is a long-game investment rather than a get-quick-rich scheme. While the housing market has been crazy since the pandemic began, with historically low-interest rates, low inventory, and other factors leading prices to rise, in general housing values typically rise slowly over years.

How much your home appreciates has to do with a number of factors, including how much inventory there is and how much demand there is in your location.

Appreciation can be divided into natural and forced appreciation. Natural appreciation is what happens over time to the price of your home as governed by forces in the market. Forced appreciation is when you buy a property for less than its market value or remodel a house which can then be sold at a higher price tag.

You can learn more about how to increase your home value here.

Negative Buyer Perception

Buyers can see information on websites like Zillow about when the house was most recently purchased. The short time frame between the purchase and being put back up for sale can come off as a red flag to some people. It could lead homebuyers to think that the location might not be safe or that the house might have major issues.

However, this shouldn’t be a dealbreaker. You can use the listing description to describe the reasoning behind the quick flip, such as “seller must relocate.”

Mortgage Prepayment Penalties

Your mortgage might not have a prepayment penalty, but it’s definitely worth looking into if you’re going to sell a house you just bought. If you do have a prepayment penalty, you might be on the hook for a percentage of your remaining loan balance, a flat rate fee, or a percentage of owed interest.

Loan Amortization

When you take out a mortgage, you are signing on for an amortized loan. This means that most of what you pay in the first couple of years will mostly go towards the interest payment rather than the principal balance. Basically, you likely don’t have much in the way of equity if you are planning on selling your house within the first few years of owning it.

Costs Associated With the Buying and Selling Process

Most people spend somewhere between 2 and 5% of the sales price of a home on closing costs. On top of that, many people use what savings they have to put towards a down payment. Unless your house has significantly appreciated in a short period of time, you likely won’t recoup what it cost you to buy the house.

There are costs associated with the selling process, too. These include things like loan origination and appraisal fees, escrow funds, insurance payments, and taxes. On top of that, there will be the realtors’ commission if you go that route.

Capital Gains Tax

If you experience fast appreciation and cash in on that, you’ll still have to deal with capital gains tax which can cut into your profits.

You’ll have to pay a short-term capital gains tax if you’re selling less than a year after buying. If you’re putting your house up for sale more than a year after buying but less than two years, you will have to pay a long-term tax rate on any profits. The rate will depend on your capital gains tax bracket.

You won’t have to pay any capital gains if you’ve lived in the home for at least two years for properties up to $250,000 for single people and $500,000 for married couples.

What to Expect When Selling In Different Timeframes

While everyone’s circumstance is going to be different, it can be a good idea to get a sense of what to expect when your selling shortly after buying. You might find that waiting for even a few more months might make the selling process more financially advantageous or at least less financially harmful for you.

Selling After Six Months

In general, people who are selling this quickly should anticipate losing some money. This means that unless you have an unavoidable or extremely compelling reason to sell, it might be best to wait a bit longer before selling.

Selling After One Year

If your property is in a fast-growing market that has seen a lot of appreciation, the seller might be able to break even. In most places and in most situations, though, the seller will probably lose money.

Selling After Two Years

At this point, you can qualify for the capital gains exclusion, which is a plus. This means that you might be able to at least break even and in some circumstances, you might turn a profit. Make sure that you consult with a tax professional or your real estate agent in order to learn whether or not you are eligible to receive the exclusion.

Signs That It’s Time to Sell Your House

As you can see, there can definitely be some consequences to selling your house soon after you buy it. However, everything in life is a matter of weighing out the pros and the cons, the risks and the rewards. You might find that it is worth it for you to list your house right after buying even knowing that you might lose some money.

Some signs that it might be time for you to sell a house even if you recently bought it include:

• You have significant equity in the home through a large down payment, home improvements, purchasing a foreclosed or short sale property, or through other means that allows you to turn a profit
• It’s a seller’s market and you’ll be able to break even or turn a profit on your home quickly
• You have the cash to take care of the closing costs and other costs, allowing you to weather the storm if you don’t quite breakeven

Ultimately, whether or not you sell your house soon after buying it is your own decision. However, understanding the different factors that can influence whether or not it’s a boom or a bust for you is essential to help you plan out your financial future.

Are You Thinking About Selling Your Home?

The answer to “how soon can you sell a house after buying it?” is fairly simple. However, the considerations that can help guide your decision can be quite complex. While it is usually financially advantageous to live in a home for several years before selling it, financial factors aren’t the only thing that guides where you need or want to live.

Selling your house to a cash buyer rather than selling it on the open market means you don’t have to invest time and money into fixing up your house, and it eliminates having to deal with realtor commissions and closing costs.

If you’re interested in selling your home in a hassle-free, headache-free way, you can get a free, no-obligation offer from a trusted iBuyer today.

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