How Do I REALLY Sell My House Fast in Chesapeake?
Today we’re gonna talk about the absolute best time to sell a house.
So when is the best time to sell a property?
Well, the truth is it depends.
If you bought it the right way, then anytime should be the right time.
However, will there be times in the market that are more advantageous than others? Try this one for a minute: Consumers and investors usually follow separate and opposite tracks.
So when all the consumers are buying up real estate, do you know what investors are typically doing? That’s when they’re selling! When everyone is in this buyer’s market, that’s when you can usually sell for the highest price and that’s when investors wanna trade into different properties.
We Buy Houses at Fair Price
But the opposite is also true.
When all of the consumers are dumping and saying “The sky is falling and it’s the worst investment that we saw in ’07 and 2008 and 9 and 10!”.
What were investors like me doing? We’re buying up everything like crazy! WarrenBuffett – he had his own hedge fund at the time.
He was buying 30.
40,000 homes per-year into the markets that actually were totally decimated.
So, best time to sell a home is really at the market high before it falls out is when you’re going to really cash in on top dollar.
But if your strategy requires that, then you may have in fact, the WRONG strategy.
Because if the market is ever turning and moving it away that it’s not advantageous for you, you should be able to continue holding that home, cash flowing it, and continuing to make money on it.
Welcome to another edition of Fridays withFred, my name is Fred Sed.
I got a call from a seller of mine that's looking to list andsell their home with us and he asked me.
Fred, do I have to pay Capital Gains or income taxeson whatever my equity is? This is the answer I have for you.
For him, it was a little bitdifferent.
But for you, it depends on what type of property you own.
If youown an investment property, you're always going to have the liability of paying incometax or Capital Gain on whatever the equity might be.
Because it's an investment property.
No matter if you own it for 6 months or 10 years, you're going to pay Capital Gains.
Now, whether or not you're going to pay it, or how much you owe on it, that depends onthe equity, the net equity.
Meaning after commissions that you pay for agents to sellthe property, repairs, appreciation of value, or whatever it might be your CPA or accountantknows and they'll tell you what taxes you actually have to pay on that net equity.
Butyou are subject to and liable for Capital Gains on any investment property in Californiano matter how long you've owned the home.
Number 2, if its the principleresidence, this is the breakdown for that.
If you own the principle residence for lessthan two years and you sell within two years of owning it, for example.
You bought it ayear ago and you're selling it today and you close tomorrow whatever it might be.
You'llalso be subject to Capital Gains and what that amount will be depends on all the factorsI talked about before in regards to what your equity is, what your cost is, acquisition,closing cost, etc.
That's for your accountant and CPA to figure out.
The second aspect ofselling your principle residence and having to pay taxes or not on the equity is the following.
If you own the property for more than 2 years, this is the cool part.
In California, as longas you're a single individual or married it's broken up into those categories.
If you'resingle, you're allowed up to $250,000 of tax free equity.
So if you've only made $150,000in equity of 4 years of owning it, you don't pay a dime in taxes or capital gains.
Butif you break that quarter million dollar mark as a single individual, you will be subjectto capital gains of whatever that amount is above a quarter million.
If you're marriedin California, you're allowed up to $500,000 in tax free equity.
Anything beyond that,you'll be subject to capital gains.
Either way, consult or talk to your CPA or your accountantin regards to "would I owe anything", "do I owe anything" prior to selling it.
That'ssome of the vendors we have access to that we give our sellers if they have any questions.
If you have any questions about your property in general, contact me 7 days a week at (949)272-0125.
For any questions regarding this topic, videos, to look at properties.
View our highly reviewedwebsite at www.
Com and tune in next week for another amazing edition ofFridays with Fred.
Why? Because that's what Fred said.
This is one of the reasons why one of my many rules in real estate is that I buy below the median.
Why do I do that on my short-term buy and holds? Because if the market ever turns AGAINST me, I’m gonna keep on cash flowing that property and those lower-priced homes – they don’t lose value like a million ora half a million dollar home does.
So Warren Buffett has this principle, right?He calls it the margin of risk.
And really when you talk about the best time to sella house, I wanna draw attention to how Warren Buffett has become a billionaire and the, one of the greatest philanthropist of our day and age; all based on a very simple principle you may have heard called Buy Low, Sell High, okay?
Warren is a really great example if you read his book Snowball, of an individual that really live his principles. He must have understood VirginiaInvesting.com!
He says if you wanna reduce your risk, you gotta increase your margin of profitability.
So it’s real simple:If you buy a house as an investor, you buy it with a lot of equity ’cause if you do, whether it’s the wrong or right time to sell, you can sell profitably! Understanding this principle is key for this next part: If you buy the right house, you can sell it anytime for great profit.
I’ve got an example here of the house that I’ve just recently sold.
This is a house that I sold and purchased in ’05 and sold in 2015.
So I’ve held onto this house for 10 years and here’s some background on this house: I actually leveraged a partner’s money and a partner’s credit to buy this house.
So how much money was I into this deal? I wasn’t in it at all.
And I used my staff and my team and we basically lined it up.
Now I have here the HUD.
This is actually the closing documents on selling this house where I received as you can see here a $38,986check.
But here’s the summary on this spread that I wanna point out.
I purchased this house in 2005 and we bought it for $109,000 and a down payment of 10% was $1,069.
My expenses over the life of holding this was 70,000 but my income was a 107.
What’s the difference? Roughly $37,000 that we got to make in cash flow and to down payments, deposits, along the way.
Then when we sold the house, we collected a check for $28,000 that me and my partner got to split afterI paid back my partner the $9,000 that he put in.
So he put in the money, he got paid back.
So basically there’s 28,000 of profits to split, there’s 37,000 that was made along the way, 37 and 28 is roughly $65,000, okay? So this tiny little house – 4 bedroom, 1 and a half bath, did a good job taking care of me.
Now let’s just for a moment take a look at the ROI.
I could’ve sold this house at any time but why did I sell it now? Well, it’s been a cash cow.
The little bit out, how do I know it’s a cash cow? For a moment, take a look at the ROI! We put in $9,000 but look at what we got out? $65,000! That’s a 720%increase.
Now, divide that over holding the home for10 years and that is 72% a year on your money.
Now, my business partner and I made 72% a year based on whose money? His money! He’s.
he and I get to split the ROI 36% each.
But let me ask you, if I put no money in, what is my real net ROI? It’s infinite! Think about it.
I didn’t put anything in, but I got all of that money coming back out to me.
So this is an example of ‘I could’ve sold this house at any time.
It’s been cash flow cowing.
Why did I really sell it?’.
Because the market was right! What do you do when the market’s wrong? Just keep making money and keep cash flowing! When you do real estate the right way, it can always be a great time to buy, hold, or sell.
which is why I love short-term buy and hold strategies ’cause I get to make my money along the way.
I hope you’ve enjoyed today’s video on the best time to sell your house.
Put some comments below! We’d love to respond and give you the help that you need as we work on turning you into a brilliant, bright, and successful real estate investor.
How much does it cost to sell a house?Well that's what we're talking about today and we are starting right now.
Hey everyone, welcome back to my channel.
My name is Karin Carr and I'm a Realtor® in Savannah Georgia with Keller WilliamsCoastal Area Partners.
If this is your first time visiting my channel go aheadand hit the subscribe button and click that little bell for notificationsbecause.
you know, you're awesome and I'm awesome so let's be awesome together.
Sohow much does it cost to sell a house? Assuming that you are going to hire areal estate agent these are the typical expenses that you're going to incur.
#1: you're going to pay the commission to the real estate agentsinvolved in the transaction.
You hire an agent and you agree to pay them Xpercentage of the sales price of the house.
When the buyer comes along if theyare represented by a different agent your agent pays that person.
Now I'vedone a whole other video about where the commission goes.
If you're interestedclick that but just know that we do not keep the whole thing ourselves.
We aresplitting it with the other agent, we are splitting it with our brokerage, we arepaying all of the marketing expenses, so don't go thinking that we're allmillionaires because that's not really how it works.
#2: you will have to pay the property taxes for the time that youlived in the house.
After the property changes hands the buyer will pay that.
Ifyou've already paid your property taxes for the whole year then from the date ofyour closing to the end of the fiscal year you're going to actually get arebate because you've already paid those property taxes and the buyers should bepaying them.
So you'll get money back.
In the Georgia market it's very commonthat buyers ask you to pay their closing costs or at least a portion of it.
Wehave a lot of first-time buyers and nobody puts 20% down any more.
I meanpeople don't have $100,000 just sitting in the bank waiting to buy a house as ageneral rule, so they may ask you, "Hey can you chip in $3,000 towards my closingcosts?" They will probably also ask you for either a home warranty, a termitebond, or both.
As you know living in Georgia there are two types of houses -those that have termites and those that don't have termites yet.
So we typicallylike to have some sort of pest control plan on our homes so that that doesn'thappen.
When the buyer comes along they'll say, "Hey, I want you to transferthat termite bond to me so that I can live in a house for the first year andnot worry that the house has termites or is going to have termites very soon.
"Now let's say the buyer moves in and the first Thanksgiving that they have alltheir family come to visit the stove breaks.
Yes, this actually happenedto one of my clients.
The home warranty company comes and if they can't repair thestove they buy them a new stove.
So it's a great thing for the buyer to make surethat they're not going to have any unforeseen major expenses the first yearthat they live in the house.
A home warranty is typically somewhere around$500.
Now if you decide to sell your house for sale by owner you will not bepaying the real estate agents commission.
Instead you're going to be paying forall of the marketing of your home.
Just a for sale by owner sign inyour front yard is probably not going to get the job done.
The people that buy forsale by owners are looking for a great deal so they're gonna come and offer youfar less than the actual market value of your house as a typical rule.
You're going tobe paying for the photographer, for the video, for the drone photography, for alladvertising, you're gonna have to put a nice sign in the yard, you're going tohave to show the property every time somebody calls you to make anappointment.
So the money that you save in the commission you're going to beincurring a lot of additional costs in marketing and in time, where it's gonnabe all on you.
You don't have an agent who's doing all this stuff for you.
Sonow you know how much it costs to sell a house but do you know what your homeis valued at? Do you know what your market valueis? It's not enough to just say oh the house down the street sold for blah blahblah.
Because half the time your neighbor might tell you, "Oh we sold it for300,000!" But they actually sold it for $289,000.
I'm just saying sometimespeople have the tendency to exaggerate just a little bit.
So if you'd like tofind out what your home is worth because you're thinking of selling in the nextsix months or so, click this link.
We would be happy to do a freeno-obligation home valuation analysis for you so that you can really sit downand say, "Okay, if I sold how much money could I expect to make?" Because that's abig factor in deciding is now the right time to sell or should I wait a year ortwo? Thank you so much for watching and I will see you on the next one.
BLOOPERS:So now youknow how much it takes.
there are two types of houses - those don't havetermites now and those that have.