Want to sell home 4 months after buying it and breakeven

6 Replies

My brother recently bought a 1.1 million dollar home in Austin Texas to personally live in by himself, in a multiple offer situation. The home sold in 4 days.

He has been in the home for 3 months and realized it is too big for his needs and is wondering how soon he can sell, and ideally breakeven on the selling costs. (which I believe are roughly 8-10%?) So theoretically we would like to list the home for 1.25 M either this summer or next. 

I know its hard to answer this without seeing a CMA of the property etc but is anyone familiar with this type of situation? Is the market hot enough right now to turn around and attempt to breakeven this soon after buying? Or will other agents see the turnaround time and not want to let their clients offer anything over 1.1?

Any help would be appreciated.

Originally posted by @Parker Smith :

My brother recently bought a 1.1 million dollar home in Austin Texas to personally live in by himself, in a multiple offer situation. The home sold in 4 days.

He has been in the home for 3 months and realized it is too big for his needs and is wondering how soon he can sell, and ideally breakeven on the selling costs. (which I believe are roughly 8-10%?) So theoretically we would like to list the home for 1.25 M either this summer or next. 

I know its hard to answer this without seeing a CMA of the property etc but is anyone familiar with this type of situation? Is the market hot enough right now to turn around and attempt to breakeven this soon after buying? Or will other agents see the turnaround time and not want to let their clients offer anything over 1.1?

Any help would be appreciated.

There is only one way to find out. Put it up for sale and see if you get any bites. We could guess all day on here but no one will be able to answer that question with such a small amount of information. I've been surprised by how much some of my properties have sold for - especially since bidding wars are real in today's market.

The realtor that assisted him on the buy would likely give him a CMA for no cost, especially if he is considering using them to list the property. However, even in this hot market, the chances of a home having appreciated 14% in 3 months aren't great. You also haven't considered that he is going to have to pay title & origination costs on the mortgage for next place he wants to buy as well.

Really most likely the answer is a long time. Between seller costs, and even with good appreciation it usually take living in a house 5-7 years to break even on.

@Parker Smith There is a lot that can come into play here. First off - if it sold so quickly before in a multiple offer situation then you're talking about a property that obviously has some desirability. Second, on the selling side you definitely will run into a difficult situation now that you have to pay commission and closing costs. Also - the last thing would be how well of an agent you hire to sell it. I'm not sure who initially sold it - but if you find an agent that is great in marketing and can get this property shown as it's highest value you'll likely be able to get top dollar for it. 

Yes, it's very possible in Austin! Might need some extra considerations: 

1) the market will have to appreciate (Austin is HOT so very possible). 

2) will need to find realtor willing / able to discount commission.

3) house might need cosmetic updates to align with whatever next summers home design trends are.