What Is the 5-Year Rule for Selling a House? There Are Actually Two

You thought buying a house was the hard part, but now you’re wondering if selling it after just a few years is a smart move. Maybe you got a job offer in another state, your monthly mortgage payments have become a burden, or the house no longer fits your needs. Before making a decision, take a closer look at the 5-year rule for selling a house and how it can affect your taxes and the money you walk away with. How Much Has Your Property Value Increased? Input your address to get a current home value estimate and see approximately how much your property value has increased since you last checked on it. The timing of your sale can make a difference, especially when you factor in closing costs, real estate commissions, and potential capital gains taxes. If you’re thinking about selling before your five years are up, here’s what you need to know to make the most of your home sale. What’s the five-year rule for selling a house? The five-year rule, as it’s known in real estate, suggests that new homeowners generally should live in a home for at least five years before selling. While it’s not a legal requirement, following this guideline helps reduce the risk of losing money on your invest...