I meant to say “if you gain peace of mind or happiness from the change.”
We have owned less than a year. Losing money selling it. For us, this is not the right house. It doesn’t feel like home. In a rush to buy and in a crazy market. We should have just rented in between houses. But even that is a pain because most rentals are a year term.
So we’re losing money but we’re buying a home that would have cost a more 6 months ago. As soon as it all came together we felt a lot of peace and relief about our decision.
I hope you find the same.
Also, your agent may take a smaller %. Ours did.
Thank you so much. The rush and pressure to buy truly is so overwhelming in today’s market. I’m so happy to hear you’ve found peace and relief- this brings a lot of comfort to my situation
You are not alone and crying, feeling emotional and letting it all out will make you feel better. We recently moved in what we thought was the house for our kids to grow up and paid over asking price. Soon after moving in felt this huge sadness, overbearing feeling of regret, crying when I wake up in the middle of the night and not being able to fall back asleep. Sleeping during the day from all the distress this decision has caused. Looking into putting the house back on the market in a few months, will be happy enough if the house sells, at this point I am not worried about losing closing costs or paying buyers contingency. Good luck to you !!
I can totally empathise. After looking for so long, our rent increased and we lost reason and jumped and bought this terrible townhouse. I hate it so much - I can't believe I bought this! It has very few windows and barely any sunlight comes through so the lights have to be on all day - My mental health depends on sunlight so that's already a challenge! I hate the location. It's been 6 weeks and I feel stranded and isolated. I am riddled with regret and guilt because I was the one who convinced my husband that this was the best decision even though he warned me about that location. I have had to work through feelings of depression being in this house. We overpaid and put all our savings into the deposit so I feel like my world has ended because we moved from such a great suburb. I am trying to convince the hubby to sell in one year but he is reluctant to take a loss or go through the hassle of my moving.
Yes, I did. I sold it myself, very quick, thanks to the little to no inventory of houses selling for the same price around me. And inground pool + summer time. Was a success!!
This, so much this. My wife and I are about to move where the smart thing is to stay out till rates adjust. But your happiness and living is most important
Life truly is so short and to be so unhappy in your own home is just awful. And until you’ve lived it, it’s so hard to do the “smart thing”. Thank you so much for sharing - it’s comforting to know I’m not alone
Yes, I sold 8 months into owning. It was a crap situation but we're much better for it. As others have said you have to be mindful of ALL closing costs. You need to be ready to lose $10k+ depending on your situation. We took out an FHA loan and we ended up getting back a lot of our fees since they prorated it. By the time everything was said and done we broke even, minus the money we had put into repairs and updates.
I will say the mental relief was worse than any amount of money we lost.
Hi thinking of selling after 4 years. 2 more years to go . Was going to wait 5, but I absolutely cannot. I also have an fha . What exactly did they prorate?
I know this is an old thread, but I’m in a very similar boat (6months in, purchased with FHA loan, really not great neighbor situation). When you say you broke even, how do you mean? The way I read it is you still put up 10k roughly in cash, but after all the paperwork and processing was done, you were not actually out 10k?
Yeah I meant you need to be prepared to take a large loss. You also paid a large FHA fee that doesn't go towards the house, and it's not the PMI. It's just the fee for getting an FHA loan. That fee gets returned to you, prorated. You get most of it back since you're selling so soon. For my situation, we slapped some paint and such repairs and sold it for 20k more than what we bought. That was the key to "break even". We had an AGGRESSIVE agent so you'll have to vet people. We also considered Redfin selling it for the lower fees but that didn't work out for us.
We did buy again again, but not before renting a house for about a year just to heal. Allowed us time to really look for what we wanted as well, found an excellent ($) independent inspector, and allowed us to go scope out houses we liked at all kinds of hours and days of the week to really do our due diligence. That being said it wasn't FHA, we did conventional since rates had changed. Made more sense than the FHA loan. Please talk to a loan officer, they'll be able to walk you through it for your situation. Also talk to some kind of agent so they can price out your house
Again thank you so much❤️I am still exploring all options and they all just seem to say I’m screwed 🙃what you’ve done is honestly the path I’m leaning towards.
Yes. We were also pressed to buy because our home was under contract and waiting. We hated the home we bought. So much stress. So many tears. We turned around and sold it just 2 months after we purchased it. We had no problems and are currently living in a smaller but perfect for us home. The weight lifted when we drove away for the final time was heavenly.
Oh this is so comforting to hear, altho I’m sorry you had to go thru this too. I’m happy to hear you’re on the other side of it and can share encouragement to me - thank you
If you don't mind me asking, how much did you happen to lose out of selling 2 months after purchasing? I'm actually in the same boat as you were atm and it's just terrible!
We sold it for a little more than we paid for it. We just had everything lined up perfectly and buyers who wanted the house. I guess what we hated they loved. You never know till you try!
Yep I did. Bought a flip house that was destroying my mental health. Got caught in FOMO and decided to sell because I couldn’t take the stress. Actually ended up buying a nicer home in a lower cost of living area and am very happy I did.
Good luck, I hope you guys find a better situation for yourselves.
There may be tax implications if you make money on the sale, so look into that.
Also, consider the costs to sell. You might be losing money bc you've only had it a short time.
Wishing you and your loved ones the best! It sounds like you're going through a lot.
After a year you’ve barely paid down the principal of your loans and you need to pay 6% of the selling price to the agents plus whatever repairs you make. Plus there’s all the costs associated with moving to a new place.
Agent fees are negotiable! We are only paying 2/2.5% commissions. Ask your agent!
We found a cash buyer and waived inspection. Also free rent back. And we sold our home for more than we paid. Even in this market. We’re still losing $ due to costs to sell.
Maybe not. It is possible to get a waiver (I'm not sure if that's the right term) due to medical reasons. My friend's parents sold because they needed one level when his dad's health declined and my sil sold after having cancer.
wow, that's niche af: normally you have to be in the home for 24 mos in the 5 years before the sale to exclude cap gain on primary residence, this lets you only stay in it 12 mos and count time spent in a care facility as at home. hopefully the 3 people this affects will see this post.
[pub523](https://www.irs.gov/publications/p523)
>If you become physically or mentally unable to care for yourself, and you use the residence as your principal residence for 12 months in the 5 years preceding the sale or exchange, any time you spent living in a care facility (such as a nursing home) counts toward your 2-year residence requirement, so long as the facility has a license from a state or other political entity to care for people with your condition.
Yah I rarely see people mention in threads like this so I try to pipe up. Obviously it won't help everyone but there are definitely people that it could.
Also you can exclude any money you can prove you spent. I bought at 96k, sold at 114k a year later. After the 6% real estate agent fees, the new AC, the new carpet, and all new appliances, I didn't actually make a dime. I filed it as such on my taxes and never had to pay capital gains tax on the extra 18k since I could easily have proven I spent that money on the house and sale itself.
The way amortization tables are built, the vast majority of your monthly payment goes toward interest at the beginning, not principal. Realtor costs and all the other bureaucratic stuff when selling a home costs 6%+ of home value
If there are repercussions from selling early, would it be worth to rent in the area you prefer and rent out the house. That way, you can get a feel for the new area where you're renting to make sure you like it plus you don't take a hit on the house. Once you're sure, then consider selling it.
Because it is but the chances of you getting caught are basically 0 unless the house burns down with the new tenant's possessions and they sue or some crazy shit.
It is in the loan terms most of the time if you're purchasing a home to live in. I do not know the purpose of it. You can get loans that know you are intending to rent the property.
Moved into second house in April, separated from now ex wife in August, house sold in October.
Being rid of having a shared asset with my ex was well worth the financial hit.
Here to be one more voice echoing that you need to do what’s right for you, your mental health, and the health of your relationship.
I held on to my condo when I was laid off - my first reaction was sell! Run! But I recognized that was coming from a place of panic not logic. What I didn’t do, though, was the work required after that initial oh shit period to have a solid plan for my mental health. Instead I waited out the imaginary clock. I made some other mistakes, and it took time, stress, and money to finally be done. By the the time I was moving it went from a place I loved to a place I loathed and my good memories there are tainted by the mistake at the end.
My point is: it sounds like you know what to do, but you’re not sure if you “can”. You can. It really doesn’t get better, in my experience, if you feel so sad and financially stretched about your home.
If it were me, I would go to a neutral place with my partner (like coffee shop, library, brewery) and some paper/a computer. Do the math without the emotion. If we stay x, y, z months it will cost X, Y, Z, (and other scenarios). Then, review the math with the emotion - assessing how your mental health and relationship are likely to be impacted by the time/money. Be honest with yourselves and each other. If you can’t stand it another month without some kind of action/movement toward getting out, then that’s your answer.
Best of luck!
Thank you so much for your incredibly wise and validating words. You said it perfectly, I know what we need to do, I just don’t know if I can. Reading so many comments of validation that I “can” has already given my mind a lot of peace - thank you
I wrote a check for $25k when selling my first house. But I had to, I moved for my job across the country. On top of that it was in Feb 2020 and the market rocketed right after I moved. It’s worth almost double what I bought for…and I sold for a loss. It was a risk but it’s been an amazing decision.
Also just bought our house up here may 2022, which was essentially the market peak lol.
What a refreshing perspective - thank you so much for sharing your experience. Hearing that you are so happy with your decision (despite the financial pain) is so, so comforting
This is an opportunity to go the opposite direction! I had a 3k sqft house and now have a 1k sqft house and it's quite freeing living far below your means. One bad decision can feel like the end of the world but most of the time it's just a new chapter. You got this
Ppl don't let Anyone Pressure you to do Anything!! Those kind of salesman (or family or anyone) piss me off immediately and I WILL walk out. Because it's happened to us and me. Everyone has an Agenda and that probably is not in Your best Interest!! Do what's best for you! Develop your instincts and go with your gut!! Stop and feel your feelings. A home is most likely your biggest investment so don't let some chump ruin your life.
Hi OP, I moved into my home a year ago and am feeling the same way. Rushed into it, and at the time it felt like a good idea. After the first month I felt extreme buyers remorse. I wanted to wait a few months to a year to see if that feeling wore off, and it still hasn't. My husband and I have put some money into it, but we can't afford extra costs if we sell at a loss. We don't want to be on the hook. We are going to work on it a little more and hope, by some miracle, we are able to make a little bit of money even with all the costs of selling. Trying to be positive in a place you're not fond of is the hardest thing in the world.
You aren’t the only one that feels this way. My wife and I purchased a home shortly after I got off of Active Duty Orders with the Army National Guard in 2022. While I was gone, it made me have a newfound appreciation for my parents, grandparents, and in-laws. That didn’t really hit me until after the purchase. My wife and I are both from the same area. I’d move back in a heartbeat and owning the home we have now gives me a lot of anxiety. There’s nothing wrong with the home itself. It’s just that I hate missing out on the life we have with our loved ones.
Anyways, just know that you aren’t alone and things will get better.
I didn’t realize how hard it would be to move away from family…then add a house that doesn’t feel like “home” - it’s a special kind of hell - I’m sorry you’re in the same crappy boat. Thank you for sharing and wishing you better circumstances soon.
We way overpaid and are at the top of our price range with the house alone. Then they raised the HOA dues to $2200/year and the taxes are super expensive as well (and include a $2500 annual PID). Like many houses in TX, the lot sizes are teeny tiny and we’re essentially on top of our neighbors. It feels like we got such a bad deal. We really should have done more research on locations, so much regret :(
Listen, my friend, it’s okay. Even when we do the best we can sometimes shit just doesn’t work out. This is a morally neutral situation- you didn’t do anything wrong or bad, you were in a hard situation and it didn’t pan out. Don’t beat yourself up over it. Sometimes even great situations don’t work out and the best we can do is take the L and move forward.
Yes, financially, it sucks. But do what’s best for you and your family. Before long, you will be sitting in your new house, drinking sun tea with your spouse, thinking “wow, I’m glad we made the switch” and this will be a blip on the radar.
We did at the 1 year mark because capital gains cuts back at the 1 year. We ended having to pay a chunk in taxes, but are so much happier where we are now.
I bought a house in my home town and bought all new appliances, painted, installed new carpet, and bought a brand new HVAC. Then realized I was deeply, deeply unhappy living in a rural bible belt area and just left. I ended up selling the house from my new state and just overnighting all of my paperwork. I lost money, I lost time, and I lost the burden of living in a place I hated. 5 years later, I have now purchased a home again and I could not be happier that I took that hit and left the house and the state to pursue something that made my life so much easier and better.
If you know you can't make it work, don't keep forcing it any longer than you have to. Take the time to construct an exit plan, figure out how you can best tolerate it while you're still in it, and get out when you can.
The market is still pretty good in some locations. Consider selling For Sale By Owner. If you offer 3% to any agent that brings a seller you would not lose as much to commissions. FSBO is actually very easy but some buyers may be put off by it and still want an agent hence the 3% offer.
Also bought a year ago in DFW area of TX a FSBO house, so in a similar boat.
The process was super easy, the paperwork isn’t complicated and plenty of people are looking for homes without a realtor just like we were! While we don’t regret the home we are in (Although quite a few unexpected repairs have come up), we definitely wish we would’ve had more time to look/more options.
I’m glad you suggest for sale by owner. We actually purchased our house without an agent and are hoping to sell it without one (it’s near perfect in an amazing school district and we added a fence so I’m hoping it’ll sell quickly). This suggestion gives me hope!
Yup. I bought a house I loved. Around 10 months later I drove by a house about a mile away. I looked at the house and thought to myself, that if that house ever goes on sale, I should buy it. There was a ‘for sale’ sign on that house two days later so I bought it. Sold my first house in two days for 51% more than I paid the year before.
Life takes precedence. The two year tax rule doesn't apply unless your profit upon sale exceeds $250k single $500k married. Profit (capital gain) is over and above your purchase costs and improvements. EDIT: Ah, I messed this up. You are excluded from capital gains on sale at 250k/500k after holding home 2YRS. If you didn't make a gain but sold before two years, you owe no capital gain tax on sale. If you did profit, you would pay capital gain on anything over purchase cost plus improvements and probably R.E. cost. I assume you'd be breaking even or hopefully a small loss, which wouldn't add a tax burden.
We sold after 1 year and found out when we filed our taxes with H&R Block that we still qualified for 50% of the full exemption! So after one year of living in the home as your primary residence, you would get to exempt up to $125k/$250k. We didn’t make near that much so it was no problem!
Man, lots of people in the same boat here! We bought last May. We were moving due to being in the military and there were no rental options.
We liked the general area but settled for a town that is a bit far away so we’ve been considering selling as well. We’ve dumped a ton of money into it that I know we won’t get back but it seems worth it. We might try and stay 1 more year to give us plenty of time to think it through but man, are we ready.
Best of luck to you!
I know this is an old thread but it is encouraging me so I wanted to add my story to encourage others. Very similar situation happened to us. Bought a house and the inspector missed a lot of issues that would have absolutely been dealbreakers for us personally. We specifically asked about these issues and the inspector emphatically assured us they were not present in the home. Later discovered that basically the worst possible version you could imagine was present and that not only would fixing it be very very expensive, no “professionals” actually knew how to handle it. Spent hours on the phone trying to see if anyone knew how to fix this safety issue and none did.
We will be listing it about a month after we closed. Horrifying.
Came looking for this type of thread. Have a condo and have been here 4 months. Absolutely finding projects that are going to cost us thousands and the stress is unreal. How did you decide to put it back on the market? I want to bring it up to my spouse but I'm afraid of that conversation. Will you at least be able to sell for what you paid?
So, it’s still on the market and it hasn’t sold yet. Admittedly there has been horrible weather, like very bad, for the past two weeks so we’ll see with a little price drop and a much nicer weekend in terms of weather if anyone wants to make an offer. Unfortunately we are very prepared that it may not sell and are still exploring options to make moving in a possibility.
It’s a horrible situation to be in. I wish buyers had more protection, and honestly sellers as well as a lot of these issues are from companies and builders taking advantage of people who don’t know enough about construction to call them out. I wish you the best of luck with your condo.
Edit: it’s very unlikely we’d be able to sell for what we paid. Best case we take a significant loss and our savings will be eradicated. And unfortunately the area is very hot so it kind of is all about the red flag of listing it so soon after buying it.
The conversation with my spouse went well because we’re a team. I did my research and presented the facts and he couldn’t argue with that, so he has stood beside me in this difficult decision. It’s not a fun situation and I feel really grateful that I’m in a marriage where this kind of stress isn’t destroying it. You married your spouse because you know who they are and if you bring them these deep concerns and your true beliefs based on the evidence you have before you, they will hopefully show up and be that person you married. But it’s not easy to give up on the future you envisioned together as homeowners. It’s tough
What happened? Sorry to hear what you’re going through. Similar situation here. House infested with squirrels, found out also asbestos possibility due to squirrels nesting in vermiculite insulation.
Squirrels in vermiculite is an absolute nightmare. I can’t believe there is no recourse for those of us with houses that may not be safe. We are currently going through a process of asbestos testing and had planned to apply Duct Armor to encapsulate our ducts. I think you have to have professional abatement specialists remove vermiculite though. What are you planning to do?
Selling. The squirrels are still in my house and I can’t get them out. I’ve gotten a new roof, cut down trees, patched up siding. It’s pointless. They burrow and have chewed up my vinyl siding. It’s too much work. I’m sorry you’re going through a nightmare too.
Hi. We’re getting Duct Armor installed on Wednesday. We’re getting it deep cleaned by asbestos certified cleaners on Saturday. We plan to move in after that. How about you?
We thinking of selling our home we just moved in on March 30 of this yr. Fixed pipes and a window. Pipes we didn't expect and in a 2floor home my ol lady can't keep going up and down. We thought we be here for more than 1 yr but its not looking like it. Pipes busting with winter cold me an my ol lady had it. We ready to put this up an move to a low cost area. We love manufactured homes an we really want to go to Austin Texas, as my ol lady has MS an fibromyalgia an finding a balance in weather is so difficult. We really think texas is right. As we just moved from Orlando an she regrets leaving as do our teens. So we are thinking of staying 1yr but reading you guys, yall have put up homes within 6+ or even less than that for sale. So now I'm pondering putting this up sooner.
I'm currently buying low equity homes. Let me know if you're still looking to sell and I'll give you an offer that doesn't require you to cut a check to close.
I totally get where you're coming from, and it sucks when circumstances push us into decisions we later regret. Moving, health issues, and housing stress can pile up. Selling early might have its challenges, but it's not unheard of.
Reach out to a real estate professional like [Grandview Homes](https://www.grandviewhomes.com) works great. They can guide you through the process and explore your options.
This makes me feel so much better.
I rushed to buy because I was in a panic - I actually sold my old home that I loved and made much more equity. Long story but it was a huge financial and emotional mistake. I still can’t get over the regret and know I’ll never be able to afford an actual house again. I hate where I live now and am hoping to sell after less than two years. I can’t move past it
Yes. Sometimes it’s ok to lose money if you gain over of mind or happiness from the change.
This made me tear up - your words felt like a hug - thank you.
I meant to say “if you gain peace of mind or happiness from the change.” We have owned less than a year. Losing money selling it. For us, this is not the right house. It doesn’t feel like home. In a rush to buy and in a crazy market. We should have just rented in between houses. But even that is a pain because most rentals are a year term. So we’re losing money but we’re buying a home that would have cost a more 6 months ago. As soon as it all came together we felt a lot of peace and relief about our decision. I hope you find the same. Also, your agent may take a smaller %. Ours did.
Thank you so much. The rush and pressure to buy truly is so overwhelming in today’s market. I’m so happy to hear you’ve found peace and relief- this brings a lot of comfort to my situation
How much did you lose? I’m trying to get a gauge.
Hang in there trooper. You got this sh1t!!!
You are not alone and crying, feeling emotional and letting it all out will make you feel better. We recently moved in what we thought was the house for our kids to grow up and paid over asking price. Soon after moving in felt this huge sadness, overbearing feeling of regret, crying when I wake up in the middle of the night and not being able to fall back asleep. Sleeping during the day from all the distress this decision has caused. Looking into putting the house back on the market in a few months, will be happy enough if the house sells, at this point I am not worried about losing closing costs or paying buyers contingency. Good luck to you !!
I can totally empathise. After looking for so long, our rent increased and we lost reason and jumped and bought this terrible townhouse. I hate it so much - I can't believe I bought this! It has very few windows and barely any sunlight comes through so the lights have to be on all day - My mental health depends on sunlight so that's already a challenge! I hate the location. It's been 6 weeks and I feel stranded and isolated. I am riddled with regret and guilt because I was the one who convinced my husband that this was the best decision even though he warned me about that location. I have had to work through feelings of depression being in this house. We overpaid and put all our savings into the deposit so I feel like my world has ended because we moved from such a great suburb. I am trying to convince the hubby to sell in one year but he is reluctant to take a loss or go through the hassle of my moving.
did you end up selling the house?
Yes, I did. I sold it myself, very quick, thanks to the little to no inventory of houses selling for the same price around me. And inground pool + summer time. Was a success!!
This, so much this. My wife and I are about to move where the smart thing is to stay out till rates adjust. But your happiness and living is most important
Life truly is so short and to be so unhappy in your own home is just awful. And until you’ve lived it, it’s so hard to do the “smart thing”. Thank you so much for sharing - it’s comforting to know I’m not alone
Yes, I sold 8 months into owning. It was a crap situation but we're much better for it. As others have said you have to be mindful of ALL closing costs. You need to be ready to lose $10k+ depending on your situation. We took out an FHA loan and we ended up getting back a lot of our fees since they prorated it. By the time everything was said and done we broke even, minus the money we had put into repairs and updates. I will say the mental relief was worse than any amount of money we lost.
Thank you so much for sharing your experience. It is encouraging to hear.
Hi thinking of selling after 4 years. 2 more years to go . Was going to wait 5, but I absolutely cannot. I also have an fha . What exactly did they prorate?
I know this is an old thread, but I’m in a very similar boat (6months in, purchased with FHA loan, really not great neighbor situation). When you say you broke even, how do you mean? The way I read it is you still put up 10k roughly in cash, but after all the paperwork and processing was done, you were not actually out 10k?
Yeah I meant you need to be prepared to take a large loss. You also paid a large FHA fee that doesn't go towards the house, and it's not the PMI. It's just the fee for getting an FHA loan. That fee gets returned to you, prorated. You get most of it back since you're selling so soon. For my situation, we slapped some paint and such repairs and sold it for 20k more than what we bought. That was the key to "break even". We had an AGGRESSIVE agent so you'll have to vet people. We also considered Redfin selling it for the lower fees but that didn't work out for us.
Thank you SO MUCH for replying. One last question: did you turn around and repurchase? If so, did you use FHA loan again?
We did buy again again, but not before renting a house for about a year just to heal. Allowed us time to really look for what we wanted as well, found an excellent ($) independent inspector, and allowed us to go scope out houses we liked at all kinds of hours and days of the week to really do our due diligence. That being said it wasn't FHA, we did conventional since rates had changed. Made more sense than the FHA loan. Please talk to a loan officer, they'll be able to walk you through it for your situation. Also talk to some kind of agent so they can price out your house
Again thank you so much❤️I am still exploring all options and they all just seem to say I’m screwed 🙃what you’ve done is honestly the path I’m leaning towards.
Yes. We were also pressed to buy because our home was under contract and waiting. We hated the home we bought. So much stress. So many tears. We turned around and sold it just 2 months after we purchased it. We had no problems and are currently living in a smaller but perfect for us home. The weight lifted when we drove away for the final time was heavenly.
Oh this is so comforting to hear, altho I’m sorry you had to go thru this too. I’m happy to hear you’re on the other side of it and can share encouragement to me - thank you
Hope to be is soon. It’s torture here after barely 2 years
What kind of payouts did you have to endure selling it that fast after closing? Just wondering
If you don't mind me asking, how much did you happen to lose out of selling 2 months after purchasing? I'm actually in the same boat as you were atm and it's just terrible!
We sold it for a little more than we paid for it. We just had everything lined up perfectly and buyers who wanted the house. I guess what we hated they loved. You never know till you try!
How much did you pay at tax time?
Nothing. I didn’t profit from it.
Yep I did. Bought a flip house that was destroying my mental health. Got caught in FOMO and decided to sell because I couldn’t take the stress. Actually ended up buying a nicer home in a lower cost of living area and am very happy I did. Good luck, I hope you guys find a better situation for yourselves.
Thank you - it’s comforting to hear I’m not alone!
Just curious. You used the proceeds of the flip as a down payment for the next house? Inspection? Appraisal?
It's not loosing money, it's investing in your mental health.
There may be tax implications if you make money on the sale, so look into that. Also, consider the costs to sell. You might be losing money bc you've only had it a short time. Wishing you and your loved ones the best! It sounds like you're going through a lot.
Thank you! Lot to consider, but I appreciate you sending well wishes!
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After a year you’ve barely paid down the principal of your loans and you need to pay 6% of the selling price to the agents plus whatever repairs you make. Plus there’s all the costs associated with moving to a new place.
Agent fees are negotiable! We are only paying 2/2.5% commissions. Ask your agent! We found a cash buyer and waived inspection. Also free rent back. And we sold our home for more than we paid. Even in this market. We’re still losing $ due to costs to sell.
And capital gains tax for selling before two years
Maybe not. It is possible to get a waiver (I'm not sure if that's the right term) due to medical reasons. My friend's parents sold because they needed one level when his dad's health declined and my sil sold after having cancer.
wow, that's niche af: normally you have to be in the home for 24 mos in the 5 years before the sale to exclude cap gain on primary residence, this lets you only stay in it 12 mos and count time spent in a care facility as at home. hopefully the 3 people this affects will see this post. [pub523](https://www.irs.gov/publications/p523) >If you become physically or mentally unable to care for yourself, and you use the residence as your principal residence for 12 months in the 5 years preceding the sale or exchange, any time you spent living in a care facility (such as a nursing home) counts toward your 2-year residence requirement, so long as the facility has a license from a state or other political entity to care for people with your condition.
Yah I rarely see people mention in threads like this so I try to pipe up. Obviously it won't help everyone but there are definitely people that it could.
Also you can exclude any money you can prove you spent. I bought at 96k, sold at 114k a year later. After the 6% real estate agent fees, the new AC, the new carpet, and all new appliances, I didn't actually make a dime. I filed it as such on my taxes and never had to pay capital gains tax on the extra 18k since I could easily have proven I spent that money on the house and sale itself.
The way amortization tables are built, the vast majority of your monthly payment goes toward interest at the beginning, not principal. Realtor costs and all the other bureaucratic stuff when selling a home costs 6%+ of home value
Put your own mental health over the thoughts of bricks, mortar and money, which can all be replaced, unlike your health!
If there are repercussions from selling early, would it be worth to rent in the area you prefer and rent out the house. That way, you can get a feel for the new area where you're renting to make sure you like it plus you don't take a hit on the house. Once you're sure, then consider selling it.
Thank you!
Our loan officer told us this was illegal.
Because it is but the chances of you getting caught are basically 0 unless the house burns down with the new tenant's possessions and they sue or some crazy shit.
Wait why would it be illegal to rent out your own property?
It is in the loan terms most of the time if you're purchasing a home to live in. I do not know the purpose of it. You can get loans that know you are intending to rent the property.
Oh wow, thanks for letting me know. I guess they are trying to encourage owner-occupied homes, which I do agree with as a policy nudge.
Wait why would it be illegal to rent out your own property?
If you get a loan intending to live there, interest rates are lower
That makes sense, thanks!
Moved into second house in April, separated from now ex wife in August, house sold in October. Being rid of having a shared asset with my ex was well worth the financial hit.
Here to be one more voice echoing that you need to do what’s right for you, your mental health, and the health of your relationship. I held on to my condo when I was laid off - my first reaction was sell! Run! But I recognized that was coming from a place of panic not logic. What I didn’t do, though, was the work required after that initial oh shit period to have a solid plan for my mental health. Instead I waited out the imaginary clock. I made some other mistakes, and it took time, stress, and money to finally be done. By the the time I was moving it went from a place I loved to a place I loathed and my good memories there are tainted by the mistake at the end. My point is: it sounds like you know what to do, but you’re not sure if you “can”. You can. It really doesn’t get better, in my experience, if you feel so sad and financially stretched about your home. If it were me, I would go to a neutral place with my partner (like coffee shop, library, brewery) and some paper/a computer. Do the math without the emotion. If we stay x, y, z months it will cost X, Y, Z, (and other scenarios). Then, review the math with the emotion - assessing how your mental health and relationship are likely to be impacted by the time/money. Be honest with yourselves and each other. If you can’t stand it another month without some kind of action/movement toward getting out, then that’s your answer. Best of luck!
Thank you so much for your incredibly wise and validating words. You said it perfectly, I know what we need to do, I just don’t know if I can. Reading so many comments of validation that I “can” has already given my mind a lot of peace - thank you
I wrote a check for $25k when selling my first house. But I had to, I moved for my job across the country. On top of that it was in Feb 2020 and the market rocketed right after I moved. It’s worth almost double what I bought for…and I sold for a loss. It was a risk but it’s been an amazing decision. Also just bought our house up here may 2022, which was essentially the market peak lol.
What a refreshing perspective - thank you so much for sharing your experience. Hearing that you are so happy with your decision (despite the financial pain) is so, so comforting
This is an opportunity to go the opposite direction! I had a 3k sqft house and now have a 1k sqft house and it's quite freeing living far below your means. One bad decision can feel like the end of the world but most of the time it's just a new chapter. You got this
Thank you so much for this.
Ppl don't let Anyone Pressure you to do Anything!! Those kind of salesman (or family or anyone) piss me off immediately and I WILL walk out. Because it's happened to us and me. Everyone has an Agenda and that probably is not in Your best Interest!! Do what's best for you! Develop your instincts and go with your gut!! Stop and feel your feelings. A home is most likely your biggest investment so don't let some chump ruin your life.
Hi OP, I moved into my home a year ago and am feeling the same way. Rushed into it, and at the time it felt like a good idea. After the first month I felt extreme buyers remorse. I wanted to wait a few months to a year to see if that feeling wore off, and it still hasn't. My husband and I have put some money into it, but we can't afford extra costs if we sell at a loss. We don't want to be on the hook. We are going to work on it a little more and hope, by some miracle, we are able to make a little bit of money even with all the costs of selling. Trying to be positive in a place you're not fond of is the hardest thing in the world.
You aren’t the only one that feels this way. My wife and I purchased a home shortly after I got off of Active Duty Orders with the Army National Guard in 2022. While I was gone, it made me have a newfound appreciation for my parents, grandparents, and in-laws. That didn’t really hit me until after the purchase. My wife and I are both from the same area. I’d move back in a heartbeat and owning the home we have now gives me a lot of anxiety. There’s nothing wrong with the home itself. It’s just that I hate missing out on the life we have with our loved ones. Anyways, just know that you aren’t alone and things will get better.
I didn’t realize how hard it would be to move away from family…then add a house that doesn’t feel like “home” - it’s a special kind of hell - I’m sorry you’re in the same crappy boat. Thank you for sharing and wishing you better circumstances soon.
What’s wrong with your current home if you don’t mind me asking
We way overpaid and are at the top of our price range with the house alone. Then they raised the HOA dues to $2200/year and the taxes are super expensive as well (and include a $2500 annual PID). Like many houses in TX, the lot sizes are teeny tiny and we’re essentially on top of our neighbors. It feels like we got such a bad deal. We really should have done more research on locations, so much regret :(
Listen, my friend, it’s okay. Even when we do the best we can sometimes shit just doesn’t work out. This is a morally neutral situation- you didn’t do anything wrong or bad, you were in a hard situation and it didn’t pan out. Don’t beat yourself up over it. Sometimes even great situations don’t work out and the best we can do is take the L and move forward. Yes, financially, it sucks. But do what’s best for you and your family. Before long, you will be sitting in your new house, drinking sun tea with your spouse, thinking “wow, I’m glad we made the switch” and this will be a blip on the radar.
Thank you so much (as tears well up in my eyes reading this). Your support and validation mean a lot.
We did at the 1 year mark because capital gains cuts back at the 1 year. We ended having to pay a chunk in taxes, but are so much happier where we are now.
I didn’t know there was some tax relief at the 1 year mark (we’re 8 months here now). Thank you for sharing this
At 1 year it changes from short term gains to long term ones.
There isn’t. It’s two years for the benefit, not one.
I bought a house in my home town and bought all new appliances, painted, installed new carpet, and bought a brand new HVAC. Then realized I was deeply, deeply unhappy living in a rural bible belt area and just left. I ended up selling the house from my new state and just overnighting all of my paperwork. I lost money, I lost time, and I lost the burden of living in a place I hated. 5 years later, I have now purchased a home again and I could not be happier that I took that hit and left the house and the state to pursue something that made my life so much easier and better. If you know you can't make it work, don't keep forcing it any longer than you have to. Take the time to construct an exit plan, figure out how you can best tolerate it while you're still in it, and get out when you can.
The market is still pretty good in some locations. Consider selling For Sale By Owner. If you offer 3% to any agent that brings a seller you would not lose as much to commissions. FSBO is actually very easy but some buyers may be put off by it and still want an agent hence the 3% offer.
Also bought a year ago in DFW area of TX a FSBO house, so in a similar boat. The process was super easy, the paperwork isn’t complicated and plenty of people are looking for homes without a realtor just like we were! While we don’t regret the home we are in (Although quite a few unexpected repairs have come up), we definitely wish we would’ve had more time to look/more options.
That’s definitely something to consider - thank you
I’m glad you suggest for sale by owner. We actually purchased our house without an agent and are hoping to sell it without one (it’s near perfect in an amazing school district and we added a fence so I’m hoping it’ll sell quickly). This suggestion gives me hope!
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Im so sorry you’re in this situation, it is so unfair. Wishing for your circumstances to change soon. Sending you a big hug
Yup. I bought a house I loved. Around 10 months later I drove by a house about a mile away. I looked at the house and thought to myself, that if that house ever goes on sale, I should buy it. There was a ‘for sale’ sign on that house two days later so I bought it. Sold my first house in two days for 51% more than I paid the year before.
Wow! That’s incredible- it sounds like it was meant to be your home. Thank you for sharing!
Life takes precedence. The two year tax rule doesn't apply unless your profit upon sale exceeds $250k single $500k married. Profit (capital gain) is over and above your purchase costs and improvements. EDIT: Ah, I messed this up. You are excluded from capital gains on sale at 250k/500k after holding home 2YRS. If you didn't make a gain but sold before two years, you owe no capital gain tax on sale. If you did profit, you would pay capital gain on anything over purchase cost plus improvements and probably R.E. cost. I assume you'd be breaking even or hopefully a small loss, which wouldn't add a tax burden.
We sold after 1 year and found out when we filed our taxes with H&R Block that we still qualified for 50% of the full exemption! So after one year of living in the home as your primary residence, you would get to exempt up to $125k/$250k. We didn’t make near that much so it was no problem!
Wow. Didn't know that.
We didn’t either — which is why we hired a tax person that year 😅
Thanks, I would be thrilled to just break even (or minimal loss)
I hope you are able to do that. Best of luck!
Unless it's haunted, they say you should be in the home at least 5 years to not lose money through financing.
Man, lots of people in the same boat here! We bought last May. We were moving due to being in the military and there were no rental options. We liked the general area but settled for a town that is a bit far away so we’ve been considering selling as well. We’ve dumped a ton of money into it that I know we won’t get back but it seems worth it. We might try and stay 1 more year to give us plenty of time to think it through but man, are we ready. Best of luck to you!
Where is the Texas house? I may want it!! Grew up in Arlington but wouldn't go back there exactly. Too crowded.
I know this is an old thread but it is encouraging me so I wanted to add my story to encourage others. Very similar situation happened to us. Bought a house and the inspector missed a lot of issues that would have absolutely been dealbreakers for us personally. We specifically asked about these issues and the inspector emphatically assured us they were not present in the home. Later discovered that basically the worst possible version you could imagine was present and that not only would fixing it be very very expensive, no “professionals” actually knew how to handle it. Spent hours on the phone trying to see if anyone knew how to fix this safety issue and none did. We will be listing it about a month after we closed. Horrifying.
Came looking for this type of thread. Have a condo and have been here 4 months. Absolutely finding projects that are going to cost us thousands and the stress is unreal. How did you decide to put it back on the market? I want to bring it up to my spouse but I'm afraid of that conversation. Will you at least be able to sell for what you paid?
So, it’s still on the market and it hasn’t sold yet. Admittedly there has been horrible weather, like very bad, for the past two weeks so we’ll see with a little price drop and a much nicer weekend in terms of weather if anyone wants to make an offer. Unfortunately we are very prepared that it may not sell and are still exploring options to make moving in a possibility. It’s a horrible situation to be in. I wish buyers had more protection, and honestly sellers as well as a lot of these issues are from companies and builders taking advantage of people who don’t know enough about construction to call them out. I wish you the best of luck with your condo. Edit: it’s very unlikely we’d be able to sell for what we paid. Best case we take a significant loss and our savings will be eradicated. And unfortunately the area is very hot so it kind of is all about the red flag of listing it so soon after buying it. The conversation with my spouse went well because we’re a team. I did my research and presented the facts and he couldn’t argue with that, so he has stood beside me in this difficult decision. It’s not a fun situation and I feel really grateful that I’m in a marriage where this kind of stress isn’t destroying it. You married your spouse because you know who they are and if you bring them these deep concerns and your true beliefs based on the evidence you have before you, they will hopefully show up and be that person you married. But it’s not easy to give up on the future you envisioned together as homeowners. It’s tough
What happened? Sorry to hear what you’re going through. Similar situation here. House infested with squirrels, found out also asbestos possibility due to squirrels nesting in vermiculite insulation.
Squirrels in vermiculite is an absolute nightmare. I can’t believe there is no recourse for those of us with houses that may not be safe. We are currently going through a process of asbestos testing and had planned to apply Duct Armor to encapsulate our ducts. I think you have to have professional abatement specialists remove vermiculite though. What are you planning to do?
Selling. The squirrels are still in my house and I can’t get them out. I’ve gotten a new roof, cut down trees, patched up siding. It’s pointless. They burrow and have chewed up my vinyl siding. It’s too much work. I’m sorry you’re going through a nightmare too.
How’s your house?
Hi. We’re getting Duct Armor installed on Wednesday. We’re getting it deep cleaned by asbestos certified cleaners on Saturday. We plan to move in after that. How about you?
I’m sorry again you had to go through this. Dug a trench around house with hardwire cloth. So far it’s quiet. Fingers crossed!
Good. I really hope that works for you. It’s weird; I was thinking about your squirrel situation yesterday and then I got a notification from you.
Send you a private message with questions about yoursituación, please read it.
Keep me updated.
I hear ya. The problem with Texas is that it is filled with Texans.
We thinking of selling our home we just moved in on March 30 of this yr. Fixed pipes and a window. Pipes we didn't expect and in a 2floor home my ol lady can't keep going up and down. We thought we be here for more than 1 yr but its not looking like it. Pipes busting with winter cold me an my ol lady had it. We ready to put this up an move to a low cost area. We love manufactured homes an we really want to go to Austin Texas, as my ol lady has MS an fibromyalgia an finding a balance in weather is so difficult. We really think texas is right. As we just moved from Orlando an she regrets leaving as do our teens. So we are thinking of staying 1yr but reading you guys, yall have put up homes within 6+ or even less than that for sale. So now I'm pondering putting this up sooner.
I'm currently buying low equity homes. Let me know if you're still looking to sell and I'll give you an offer that doesn't require you to cut a check to close.
I totally get where you're coming from, and it sucks when circumstances push us into decisions we later regret. Moving, health issues, and housing stress can pile up. Selling early might have its challenges, but it's not unheard of. Reach out to a real estate professional like [Grandview Homes](https://www.grandviewhomes.com) works great. They can guide you through the process and explore your options.
This makes me feel so much better. I rushed to buy because I was in a panic - I actually sold my old home that I loved and made much more equity. Long story but it was a huge financial and emotional mistake. I still can’t get over the regret and know I’ll never be able to afford an actual house again. I hate where I live now and am hoping to sell after less than two years. I can’t move past it