What Would a Seller Net—over 1 to 5 years

Today people move every 7 years on average. And a great many, for one reason or another, sell much sooner.

 To more likely achieve a good financial return, and a larger downpayment on the next purchase, a good selling strategy is to keep a home for at least 5 years, if possible.

In spite of the market’s recent struggles, the average sale price in our region has appreciated by about 4.9% per year over the last 5 years, a figure that is higher than the historical average. 

So what would a Seller's Net Sheet look like if you purchased 5 years ago and now decided to sell?

What would it look like if you purchased 4, 3, 2 and 1 year ago?

Let’s have a look using the following parameters:

  1. The sale price used is $215,020, the average price in 2009.
  2. The purchase price used is the average price for each of the previous 5 years.
  3. With 5% down, the mortgage is at 95% of the purchase price.
  4. The mortgage balance is based on a 5-year rate at time of purchase and a 30 year amortization.
  5. No penalties apply as the Seller is porting the mortgage to another home.
  6. Selling costs include legal, brokerage and GST.

Here is a picture of what a Seller net sheet might look like, depending on which year the home was purchased.


Avg. Sale Price Today


Seller Net

Year Purchased

Avg. Purchase Price

Net After Mtg. & Costs

Less Down Payment












2006-3 yrs.





2005-4 yrs.










By selling within the first 2 years of ownership, the seller would experience losses. In the third year the Seller nets $14,815 and shows a gain of $4,815 after downpayment. Both a substantial net and gain is made in the 4th and 5th years of ownership.

Working through a Seller’s Net Sheet before deciding to sell is a worthwhile exercise. Ask your REALTOR® for assistance and get the mortgage balance from your lender. If not porting the mortgage, confirm discharge penalties with your lender. 

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