Want to sell house/husband wants to wait

Avatar for colomom99
iVillage Member
Registered: 03-28-2003
Want to sell house/husband wants to wait
4
Wed, 03-23-2005 - 5:19pm

Hi all! I haven't posted in a while but check in from time to time. Here is my latest idea and I wanted to get some feedback. We live in a very pricey neighborhood in a 120-year-old house that we have poured a lot of money in to renovate. We bought it for the location after making a lot of money on the last one. It was too small but we thought, hey, we will just put an addition on it. About 100K later we have a nice but still kind of small house that is really stretching us every month with the huge second mortgage we used to finance the improvements.

Ok, so here is the deal: I want to sell.

Even though it is considered way uncool among our friends to live in the 'burbs, we could get a similar size or bigger house with an actual yard for about 100K to 200K less than what our house is valued at. And even though we would suddenly have to commute (which I'm not looking forward to), we could pay off nearly all our debts and only have one mortgage instead of two. Also, I'm getting really fed up with the city school system my kids are in.

Only thing is my husband wants to wait a year. He says our house isn't ready to put on the market yet (still some unfinished stuff that would have to be done to get highest asking price). He'd also like our kids to stay in their school for one more year before moving to a new one. He's got a point but I'm afraid now I've got it in my mind it will be really hard to wait.

Any advice?
Jenny

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Wed, 03-23-2005 - 6:05pm

Hi Jenny - this is an excellent question - one which will likely yield lots of different answers.


First, your DH has an excellent point.

All my best,
Danni

iVillage Member
Registered: 02-25-2004
Thu, 03-24-2005 - 9:20am

Jenny....as someone who's is currently selling their home in part to pay off debts and some other reasons...think long and hard before you make a big decision like this.

Danni is right - taking one action will always open up a can of something else, lol. And if you're looking to get top dollar for your house it will not happen if repairs still need to be done. You could sell your home as is but it's a guaranteed way that you will not get you home's full value, so that's something to think about. The commute is also something to think about. One of the other reasons my DH and I are thinking about selling is that it takes him 45-50 min to get to work with no accidents and at least 50 dollars in tolls monthly! Not to mention current gas prices - it's really starting to wear him down. How old are your kids? Danni also brings up a good point - if they're older your too tight squeeze in your home probably won't stay that way too much longer, but if they ARE younger the move may not be so bad, or as traumatic (take it from someone who's parents moved out to the burbs her junior year - I AM STILL ANGRY ABOUT THAT , LOL:)....But on the other hand you are right, selling your home if you manage it correctly can be a good way to bring your budget back to reality and within your monthly salary and erase some debt - at least it's working out that way for my dh and I. Although, we don't have children and 20 years of memories in our current home so in many ways I think it's easier for us to just pack up and start over, than maybe someone else with different circumstances...?

Also - I think that any decision that is made is one that should be made between BOTH partners. If your husband IS on board to move and agrees that it will help some of your debt problems etc. but really does want to wait a year to fix up the current place - it may not be too bad to wait and get full asking price for your home.

I wish their was a life manual for times like these that you could reference and it would give you the right decision every time. The truth is though that every family is different, and what will work for mine may not work for someone else's. Only you and your husband know what your variables are and can make an accurate decision in the end. One last thing to think about (something my dh and I are in the process of doing) plan out what your NEW budget would be after you sell your home and eliminate your debt, because more than likely you'll have $ that you didn't before and should have a plan of attack for what you're going to do with it. With the sell of our home and DH's new raise we will have an extra 800-900 dollars a month that we currently don't have - I have a feeling if we don't plan for it - it will end up going down the drain if not tracked and allocated correctly and eventually, we'll get ourselves in the same boat. We’re slowly coming to realize that the sell is more than just moving/erasing debt, if we want to get out of debt and stay there it’s going to have to be a whole lifestyle change, and a change in the way of thinking – and how we handle and view $ - and organizing ourselves and our $$.

Good luck in whatever you decide - I know firsthand what a gut wrenching decision it can be, keep us posted on your decision.

:)

iVillage Member
Registered: 08-20-2004
Thu, 03-24-2005 - 4:38pm

My vote is to finish as much as you can and sell.
MAKE the hubby finish the repairs.

The profits will be tax free up to $500k married, I think.

That's a really big deal.

This could be a serious windfall for you.

Also, children are very resiliant to change, and who
knows, life in the suburbs could be very much to
their liking.

DO NOT go out and get car loans, 'justified' by the long commute.
If needed, get a disposable car, with high gas milage, like
a 5 year old geo or civic.

I definately agree that a long commute kills the spirit.

But what you have there is looking to be a 'serious windfall'.

Cash in, and surge forward!

Avatar for colomom99
iVillage Member
Registered: 03-28-2003
Thu, 03-24-2005 - 5:21pm

Thanks to all who replied to my post. Here is a bit more info on our situation:

We are about 30K in debt plus the huge mortgages. My husband's car (a 99 Honda CRV) is paid for. Mine is a new Toyota lease. Our kids are still pretty young. The youngest enters kindergarten next fall, the oldest in fifth grade. It will be the only year all three will be in the same school since in our district it only goes K-5. If we moved to the suburbs the schools are K-6, so even if we waited they could still all be in the same school the following year. So I figure we win either way, whether we move sooner or later.

My husband is basically on board. He doesn't like the idea and hassle of a move but understands my position. He even met with a handyman this morning to make a list of stuff that needs to be done that we have been putting off forever. And, he's starting to talk about "the next house."

We make decent salaries but are pretty stretched. I'm on the Quicken debt reduction plan and rarely use credit cards anymore. I've set up savings accounts for all the kids and one for me, too. My husband has the 401K. For me, it's really a quality of life thing. 6. We're probably not gonna make substantially more money in our jobs. And there are some things I really want to do, like travel internationally with the kids so they can be exposed to other cultures and someday adopt another child. Those things are impossible if so much of our money is going to a house. I'd even like to think about cutting back at work so I can have more time with my kids.

It's because of this board and some of the financial books I've been reading that I'm even thinking this way. I hope it makes sense and doesn't sound like I'm just rationalizing (which I probably am). Jenny