When a client wants to sell their home and they have only lived in it for one year, it is likely one of two situations: either they are getting divorced or relocated. In my last situation it was the former. A nice young couple, barely married purchased their first home together. Unfortunately, the rigors of life, marriage, and an older home got the best of them, and they had to sell and part ways. When this happens, they are often lucky to break even (even in today’s market), particularly when the home is in need of repair.
Most homeowners in town in suburbia, Columbus Ohio, can expect roughly a 6% increase (or more) in home value over the course of a year. The cost of sale to pay the realtor fee’s is generally 6% of purchase price, and there are often costs associated with sale in form of repairs/remedies to help the deal go through. In addition, there are other associated fee’s with title, transfer fee’s, ,etc… at closing. Some sellers may bring money to the table if they paid a premium price for their home to begin with. In a good scenario, if a home was purchased at a good value, and improvements were made to the property such as a remodeled bathroom/kitchen then someone may walk away with money in their pocket. In this case, general maintenance such as new roof, windows, HVAC, does not always fit into this category. It may make the home more saleable, but does not guarantee increase in value at sale. A last thing to consider is how much money was put down at closing when purchasing the home the first time- will this be recouped? Something to ponder when deciding on a final purchase price.
In my client’s situation, they had a lovely home in a nice location with some updates. They lived in their home a little over a year, but they did not have to bring money to the table, and had a little in their pocket at closing…win.