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\n <\/div>\n \n How Much Is Your Home Worth Now?<\/h3>\n
Get a near-instant home value estimate from HomeLight for free. Our tool analyzes the records of recently sold homes near you, your home\u2019s last sale price, and other market trends to provide a preliminary range of value in under two minutes.<\/p>\n \n
1. What\u2019s your reason for selling?<\/h2>\n
The most common reason for selling a house after two years is job relocation, Gore says. Other reasons can include:<\/p>\n
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- A health issue<\/li>\n
- A family emergency<\/li>\n
- A financial crisis<\/li>\n
- A change in circumstance, such as a divorce<\/a> or death in the family<\/a><\/li>\n
- Buyer\u2019s remorse<\/a> \u2013 when the house just isn\u2019t right for you<\/li>\n<\/ul>\n
<\/div>\n2. Do I have to follow the 5-Year Rule?<\/h2>\n
The 5-year rule<\/a> states that the longer you keep your house, the more likely you are to make a profit when you sell it. Those who sell their property before owning it for five years risk losing money on their investment.<\/p>\n
Primary reasons for this include a lack of equity accumulated in the home and insufficient appreciation<\/a> \u2014 an increase in property value.<\/p>\n
\u201cThe market is the largest driver of price,\u201d Gore says. Price is one element in determining how much your home has appreciated. Appreciation derives from other factors as well, some of the most common of which include:<\/p>\n
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- Location:<\/strong> Some parts of the country are more attractive to homeowners. Cities offer many amenities \u2014 although some buyers prefer a quieter, more rural setting. Nevertheless, proximity to employers, restaurants, shopping, and other attractions can enhance a community\u2019s value \u2026 as well as that of your home. Being adjacent to parks and green spaces can add 8%-20% higher value<\/a>. Low crime rates and good schools can add value. Some HOAs can, as well.<\/li>\n
- Supply and demand: <\/strong>Inventory has slightly increased, and the prices have increased about 0.9%<\/a> from last year. Changing interest rates and property buying priorities impact the appreciation of existing homes.<\/li>\n
- Comparable properties nearby:<\/strong> Real estate comps<\/a> are recent nearby home sales that affect the sale price and value of your home. In a seller\u2019s market<\/a>, prices typically rise, which could effectively boost equity<\/a> in your home and increase appreciation.<\/li>\n
- Size and usable space of your home:<\/strong> If you have built a home addition<\/a> or finished an attic or basement, that adds more usable square footage, which can increase your home\u2019s value. Accessory Dwelling Units (ADUs<\/a>), such as a detached mother-in-law house<\/a>, have been known to add roughly 30%-35% value<\/a>.<\/li>\n
- Age and condition of your home:<\/strong> An appraisal is a tool to evaluate your home\u2019s general condition<\/a>. Age does not necessarily detract from your home\u2019s worth, as long as quality materials and building practices were used and the home has been renovated<\/a> or at least properly maintained<\/a>. Gore advises homeowners to keep their homes in good condition. \u201cFix things. Don\u2019t give buyers a reason to chip away at your asking price.\u201d<\/li>\n
- Upgrades and updates:<\/strong> Even if your home is built to last, changing trends can necessitate a remodel<\/a>. Kitchens<\/a> and baths<\/a> remain the most popular rooms to upgrade. They\u2019re also the most expensive. Just be careful not to over-improve. If you know you\u2019re going to be in the house only a short time, Gore recommends caution. \u201cDo things to increase the value, but think long-term,\u201d he says. Small improvements are best. For example, fresh paint can add 2%-5% to a home\u2019s value<\/a>.<\/li>\n
- Health of the economy:<\/strong> With inflation comes rising home prices<\/a>. Conversely, prices typically drop during a recession<\/a>.<\/li>\n<\/ul>\n
- Supply and demand: <\/strong>Inventory has slightly increased, and the prices have increased about 0.9%<\/a> from last year. Changing interest rates and property buying priorities impact the appreciation of existing homes.<\/li>\n
- Buyer\u2019s remorse<\/a> \u2013 when the house just isn\u2019t right for you<\/li>\n<\/ul>\n