Flipper/Rehabber · Dallas, TX · Member since 2017 · 20 posts · 4 votes
I purchased a home in Marietta GA off Terrell Mill and Delk Road by the new schools that are being built over 1.5 yrs ago. My house value has been climbing and I want to sell to downsize and open more funds for my RE deals. My 2 year mark is December 15th so I can avoid capital gains tax. It is a 5 br 3.5 ba house with a great backyard and pool. Will definitely appeal to a family with children or anyone that likes entertaining.
I have the following questions:
1.) Is listing in mid-late October a bad time to list or should I wait until the spring in hopes that the market will keep trending upwards? Also, it would be a better time for someone with children in school to close once school lets out. But then again, everyone lists then so there will be more inventory, possibly. Your thoughts here are greatly appreciated.
2.) What are your opinions about when this housing bubble will end?
3.) How does the Gov know when your 2 year mark of occupying a property is? When you change your address? Change utilities? Do they ask for anything after closing?
Flipper/Rehabber · Acworth, GA · Member since 2014 · 246 posts · 92 votes
9y
if your looking to move soon, I don't see any issue with listing in fall. I have sold multiple houses at my asking price during the fall in cobb. Even winter. Good question about the 2 yrs. I would like to know as well.
Acworth, GA · Member since 2017 · 51 posts · 22 votes
9y
@Tiffany Allen If you list in October and get an offer right away, are you going to sell prior to the 2-year mark and pay any capital gains? If not, then I probably wouldn't list in October. Homes priced right seem to be selling pretty quickly. Just my $0.02. How much profit do you plan to make on the sale? It looks like you paid $370k and the Zillow estimate (not that those are necessarily accurate) is $411k, so after closing costs and fees, it seems you would would be somewhere around $20k-$40k in gains, which would be well below the allowed $250k ($500k for married couples) before you're responsible to pay capital gains after the 2-year mark on Dec 18th (my older set of twins birthday I might add). :)
Acworth, GA · Member since 2017 · 51 posts · 22 votes
9y
@Tiffany Allen As long as you meet the requirement of living in the house for at least 2 (of the past 5 years), then yes - you are protected from the capital gains up to $250k/$500k (single/married). If you sell before Dec 18th, you won't meet the requirement and will be subject to pay the tax on any gains on the property. Obviously I am no tax professional, but that's my understanding.
I suppose you could list the house now, or in Oct, but delay closing until after he two-year mark? Maybe a buyer would be willing to either delay closing or build in a two month lease back before the official sale date?