Selling a House You Just Built

There are different reasons people build houses. For most real estate investors, it’s usually for long-term income generation by renting the property out. However, some situations may occur that would require you to sell a house you just built. If you find yourself in this situation, there are certain things you need to know to facilitate selling a house you just built.

Selling a House You Just Built

Generally, buyers prefer houses that have been occupied for a certain period as this serves as a guarantee of the property’s safety, legitimacy, and value. Nonetheless, newly constructed houses get sold all the time. If you are trying to sell yours, there are certain factors that could affect your sales and profits.

Open House sign

Possibility of a Lessened Property Appreciation

A property’s value is not only determined by its physical components, its financial history also accounts for a huge part of its value. The only way for a building to have a financial history that convinces buyers that it is a good investment is if it has been involved in several transactions. 

However, this is not likely to happen with a new building, and as a result, the amount that it is valued at currently might be less than what it would be valued at in the future. It is crucial that you note this when selling your new property.

Capital Gain Taxes

When a property is built and then sold, the homeowner needs to pay certain taxes on the profit realized from the property. These are called capital gain taxes. Different rates are used to calculate capital gain taxes, and these rates depend on the duration of time for which the property is held.

Short-term capital gain taxes, which are paid on buildings held for less than a year, are typically higher than long-term capital gain taxes which are for buildings held longer than a year. For new properties held for less than a year before getting sold, the homeowner is expected to pay anywhere between 10% and 37% of the profit gained. 

Local Market

When trying to sell a house you just built, the average cost of similar properties in the area is another determinant of your sales price. If the average cost of similar properties in the area is $450,000, then your property’s selling price would most likely revolve around that price, irrespective of your expenditure. 

Clients meeting with their real estate agent

If you are not looking to sell your new house quickly, however, you could set a selling price that is way higher than the average sales price in the area, and wait until a willing buyer comes along.  

Tips to Help You Sell Your New House Fast 

If you are trying to sell a home that you just built, especially if it’s an emergency sale, then you would need to close a sale as rapidly as possible. Even if this is not the case with you, it is apparent that a quick real estate transaction saves everyone time and energy. 

Employ the Services of a Real Estate Agent 

Real estate agents are invaluable to investors. Not only do they help you find the choicest properties when looking to buy, but they also help you navigate and find the best buyers when looking to sell

Experienced realtor agents such as CA Flat Fee, for instance, possess a vast knowledge of the local market and provide full services such as MLS listings, title search, internet marketing with high conversion rates, and comprehensive services at a more-than-fair flat fee of $5,000.

Ensure the Property Is in Top Condition

When trying to sell your new property, you need to ensure that it is in a presentable and marketable state. It is a new property and it is expected to be in great shape, however, you would need to ensure that all construction work is over and properly tidied up. The building should also be cleaned by professionals, and you should certify that all systems are working efficiently. 

Offer Sale Incentives

Every buyer wants to cut a good deal when purchasing a property. Offering sale incentives is a quick way to get buyers for your property. Discounts for early payment or reduced closing costs are some of the incentives you can offer buyers.

Ensure Your Documents Are Complete

One of the factors that stall the quick sale of a property is an incomplete record. This is because most buyers do not want to be saddled with the complications that may arise due to incomplete documentation in the future.

Ensure that documents such as land purchase receipts and survey and building approval by the appropriate authorities are original and have been duly signed to avoid legal complications or delays.

House in the process of being built

Frequently Asked Questions 

Can I Sell a House Before It Is Built?

Yes, you can sell a house before it is built. The real estate market has grown so much in the last decade that potential buyers do not need to see a finished structure before purchasing it. As a seller, these are some tips that can help you sell your property before it is built:

  • Engage the services of a real estate agent who specializes in the presale of houses under construction 
  • Offer a virtual 3D illustration of the property to help buyers know what they should expect

Should I Sell My House Before Buying a New One?

There are different factors to consider when looking to buy a new house, and the decision solely rests on you and your unique preferences. However, real estate experts advise selling your property before going ahead to buy a new one.

This not only gives you access to the equity accumulated on your existing property but also saves you the strain of paying two mortgages for your existing home and the new one you just purchased, especially when the forbearance period ends.


Selling a new property requires an extra level of care to avoid losing money. If you’re considering selling your newly built house, you might want to consider hiring the services of a professional realtor company such as CA Flat Fee to help you navigate the selling process and find the best buyers for your property.