Can you sell a house here that is less than a year old and make a profit?

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Old 03-09-2013, 07:21 AM
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Default Can you sell a house here that is less than a year old and make a profit?

I like to browse the resales on Thevillages.com and this morning I saw a house for sale in Sanibel that was purchased in November of 2012, less than one year old. I looked to see what they paid for it on sumterpa.com and it was less than what was being asked for it by about 15K.

I thought you weren't allowed to sell a home that was less than a year old and make a profit and if you did the builder would get the profit or something like that.

Has this changed?

Or could they have added some upgrades to it and you are then allowed to add those items to the sale price?

I thought that something was in place to discourage flipping of new homes.
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Old 03-09-2013, 07:23 AM
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Originally Posted by graciegirl View Post
I like to browse the resales on Thevillages.com and this morning I saw a house for sale in Sanibel that was purchased in November of 2012, less than one year old. I looked to see what they paid for it and it was less than what was being asked for it.

I thought you weren't allowed to sell a home that was less than a year old and make a profit.

Has this changed?
I think there are some legit exceptions, like a death in the family. And of course after they pay closing costs and sales rep fees they may be loosing money.
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Old 03-09-2013, 08:03 AM
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On some of the re-sales that are less than 1 year old they include the furniture, I think that will also allow them to get around the profit provision
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Old 03-09-2013, 08:04 AM
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Old 03-09-2013, 08:21 AM
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Gracie - We sold our home in Pennecamp that was less than 1 year old for more than we paid. However, we were able to add in the upgrades that we had made to the original purchase price and also the realtor's fee was included in the resale price. The closing was actually within 1 month of the anniversary date, so they may have let us slide just a bit since we were purchasing another home in TV.
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Old 03-09-2013, 09:04 AM
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Nothing has changed regarding the contract you sign when you purchase a new home today. If you sell within a year the Developer gets the profit. However, when you deduct the sales commission and any upgrades made since purchase (landscaping etc. etc.) it is doubtful there would be any profit as that would easily "eat up" any profit. I too watch the real estate market----kind of a hobby of mine----we have bought and sold more than 20 homes since we have been married. Homes in TV have slowly risen but not near enough to start buying and "flipping" as was done a few years ago IMHO.
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Old 03-09-2013, 10:11 AM
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Just out of curiosity....what are the IRS laws on selling less than two years and capital gains? I know years ago you had to pay capital gains tax on any profit from a home owned less than two years.(I understand the Villages profit law) but what if you sell 14 months after puchasing...just cause you want to, no death, health, etc?
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Old 03-09-2013, 10:30 AM
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If your home is primary residency and you lived in it less than 2 out of the last 5 years you would pay tax---if two years or more---no tax. If it is not your primary residency (vacation home/your a snowbird) you pay tax if there is net profit. That's a thumbnail sketch.
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Old 03-09-2013, 10:35 AM
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Thanks Jim, for some reason I thought that had changed in recent years.....guess not.
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Old 03-09-2013, 03:44 PM
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Quote:
Originally Posted by justjim View Post
Nothing has changed regarding the contract you sign when you purchase a new home today. If you sell within a year the Developer gets the profit. However, when you deduct the sales commission and any upgrades made since purchase (landscaping etc. etc.) it is doubtful there would be any profit as that would easily "eat up" any profit. I too watch the real estate market----kind of a hobby of mine----we have bought and sold more than 20 homes since we have been married. Homes in TV have slowly risen but not near enough to start buying and "flipping" as was done a few years ago IMHO.
I was told by my broker that if he sold your home the commission would be 6 percent. If you bought another home in the villages the commission would be 5 percent. That's with a village broker, buying in the TVs. I could not see you making any profit in only one year. I would think you would lose money. Oh yes ,if he did both sales they would take 1 percent off the price of the new home.
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Old 03-09-2013, 08:51 PM
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Tommy: the 1% commission rebate is based on the price of the home sold.
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Old 03-09-2013, 09:13 PM
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We met a couple Nov 2012 that sold their house that they purchased February of last year. They bought and Iris and did not like it, they lost $15,000.
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