Dear Monty: I am writing to tell you my story. Please share it in your column to warn others. I know how the five-year rule works because I lost my entire down payment. When we bought our home about three years ago, no one we dealt with mentioned the five-year rule. Our real estate agent, the mortgage loan officer, the appraiser, and the home inspector never noted it. We were there for over a year, and my wife and I divorced. I lived in the house alone before I decided to sell. It was on the market for months. Our agent (a different agent) initially told me the home was overpriced, but she did try to sell it. The bottom line is the house sold for what I paid. When they took the commission out, I had to bring a small check to the closing. Many other homebuyers get trapped in this situation, so my question is, will you help?
Why Are Industry Participants Silent?
I don’t believe the vendors deliberately held this information back, and you didn’t imply they did. They have many other items to discuss and limited time to spend with a customer. Many different reasons besides divorce could trigger the need to sell sooner. If the vendors told customers of the existence of the five-year rule, they may see it as a small risk and move ahead regardless.Other Events That Could Trigger The Rule
This writer has seen couples struggling that felt buying a new home was the answer. It usually wasn’t. Other trigger events that happen every day are:- Disabling accidents
- Disease
- Loss of job(s)
- A job relocation
- The death of a family member.