Love it or List it
Posted by michelle on Feb 15, 2013 in Saving Money | 18 comments
Lately, it’s been a little quiet over at See Debt Run, yet we’ve been busier than ever at our house. For the past few weeks, we’ve been working on all of the home renovations we’ve been waiting to have the funds to complete. Our master bathroom had carpeting (yep, gross) and now has easy-to-clean tile. Our kitchen, which was updated years ago, finally has a backsplash. Almost every single wall in the house has been repainted. Our house is finally coming together after only 9 years of living here! Now that the renovations are nearly complete, I find myself playing my own version of one of my favorite HGTV shows, Love It Or List It. In the show, homeowners have grievances concerning their property, wondering if they should fix it up or sell their home. A talented designer and her team breezes in armed with a checklist and a vision, while a realtor takes the couple out to look at new houses that he thinks will solve all their problems. Although I don’t have a designer, I have been sprucing up my house on my modest budget.
Should We Stay?
For many reasons, this house is perfect for us. Even though our house wasn’t very expensive, we have a private neighborhood pool and tennis courts. Our boys take a break from the year-round program at the Y and swim for the more laid-back neighborhood swim team each Summer. Our oldest has been swimming with the team for 7 years now! In the shade of mature trees, we have sidewalks that go all around our neighborhood, but they’re only on one side of the street. In fact, they’re not on our side. I actually think this is a good thing! This means that we can take walks with our family and feel safe, but that we don’t have to worry about a passerby walking in front of our own home when we’re backing out of the garage. We also don’t have to worry about picking up the occasional Big Gulp cup that tends to make its way into your yard when you have sidewalk access to your house. Our particular house has a great lot in the neighborhood, too. Just two blocks down and around the corner, there’s a huge, tree-covered walking/biking trail that stretches out for miles across the state. Our neighborhood has a good feeling of community in which I feel safe letting my children play. All the neighbors know each other and everyone is willing to help out if, for example, two of your trees are destroyed in a single storm, or if you need to borrow a ladder or a missing ingredient for dinner. The neighborhood committee hosts events like parades and get-togethers for special occasions, and even special interest meetings. We even have a club house with a paid staff.
We love that our house is a 2-story. I like being able to put the kids to bed upstairs and then I can come back down and not have to tip-toe or whisper. Our fenced backyard is great for the kids. I love our wooden playset with swings, two slides, a trapeze bar, and a “tree house” nook with wooden ladders. I admit that our yard looks a little crowded with a trampoline as well, but it fits and the kids love jumping. We also have a deck big enough to seat 6-8 people comfortably for a BBQ. The vaulted ceiling in our master bedroom is great and makes it feel even bigger, and having our own private master bathroom is something I’m not sure I would ever be able to live without!
Oh yeah, and there’s the money thing. We are just now able to see the finish line in this race we’ve been in to get out of debt. Although we’re not thinking about going crazy and buying a million-dollar house, the houses I’m lusting after would be a tiny bit more per month. That said, I did just pay off nearly $22,000 of credit card debt in a little over a year, our only car payment will be totally paid off in a few months, my son’s hospital bill will be paid off in a month, and that 401k loan we STUPIDLY took out years ago? That will also be paid off in a few months. As long as we don’t do anything crazy (shopping real estate right now is questionable…), it should be very comfortable to continue to up our savings each month, save up for fun things like vacations and cute shoes, and plot a cozy and secure road to retirement even with a couple hundred going to a new-to-us house.
Should we go?
The public schools that our children currently attend are ranked as 8′s and 9′s according to greatschools.org. These are good marks, but there are definitely even better school districts just a hop, skip, and a jump in price away. Our oldest is very smart and tests very well, but is sometimes unmotivated to put forth the effort to really be an academic superstar. He gets A’s and B’s, but he should effortlessly get those A’s every time as smart as the little stinker is! Our middle child is in a gifted program and usually tries to do well in his studies. My youngest is so advanced that I know she’ll follow in her big brothers’ footsteps. Because of this, shouldn’t I try to give them every opportunity possible if I can?
Although our laundry room is on the main floor, apparently a huge selling point for some, it’s absolutely tiny. I have no choice but to fold laundry on the couch and then rush to hide it if company comes over. Also, our neighborhood is great and we really love our neighbors; however, we’re noticing that the property values seem to be decreasing around here. The fact that a few of our favorite neighbors recently moved out wasn’t an end-all-be-all, but the fact that their homes were replaced with antisocial folks doesn’t help the “stay” cause.
With our oldest child being in middle school now, we’ve heard that now is the time…if ever. I’ve read and heard that once they are in high school, it is a horrible time to move children. I actually know about this, since my parents switched me from a sheltered Catholic school at the end of 8th grade to a crowded public school where I got to be the “new girl” for a few months. It stinks moving into a new school district at the end of the year, especially at that age. Nearly everyone’s been friends since preschool and it can make you feel like such an outsider. I was fairly outgoing, but my oldest is one of those kids that takes a while to warm up to new people.
Right now, we are in what’s called a “buyer’s market” meaning that interest rates are low and housing prices are reasonable. If we are going to upgrade our home at all, it would be wise to do so now. Looking at the numbers, our house was worth nearly 10% more a few years back at the peak of the market than it is now according to sites like zillow.com. This means obviously we would net less of a profit if we sold. However, it also means that we will save more on a home we are buying. Since we are not first-time home buyers, we will know what to look for this time. I may have been impressed in the past by cute decor and fresh paint, but I now know to look at the bones of a house, the comparables, and the neighborhood as a whole instead of going gaga over a pool table or cute curtains.
Time For The Talk
No, not that kind of talk. It’s time now for us to sit down as a family and discuss our needs and wants. We need to be realistic in our expectations, be it to stay and fix up or sell and move on. We need to be conscientious of everyone in the family as well. If moving is going to be a negative experience for the kids at this time, we should wait. Right now, I’m leaning towards “GO” since I sort of fell in love with a home (and an entire area) just recently. I promise to take a break from caulking and painting and sprucing soon to fill you in on what’s been decided!
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We plan on buying a new house within the next year. We just can’t decide where! Maybe you guys can help us out since we live in the same area
Michelle recently posted..How to Know if You’re a Minimalist
Sounds like you’re thinking of all the right things when considering your decision, Michelle. Can’t wait to hear what you’ve chosen to do!
Laurie @ The Frugal Farmer recently posted..Motivation: Do it for the Kids
I’m big on the neighbors part of this argument (though the schools are probably far more important in the end analysis). My life is SO much better the last few years since our move now that we have good neighbors. It makes coming home a treat and walking outside to chat with any of our neighbors is always fun.
AverageJoe recently posted..The Power of Big Fat Audacious Goals
Good luck on such a big decision. It sounds like you have a great house and a great neighborhood, but there certainly are some issues. The grass isn’t always greener on the other side; maybe there is an opportunity to put your kids in other schools before moving?
Tushar @ Everything Finance recently posted..Enjoy Some Wine (On a Budget)
That is a tough call. I could go either way on it myself. That said, you’re right in terms of the schooling. If you’re oldest is in Jr High then if you move you’d likely want to do it before they’re in high school.
John S @ Frugal Rules recently posted..Frugal Friday: Blog Posts That Ruled This Week, More of the Same Edition
I think this is a great time to purchase a home regardless of the situation. Rates are extremely low and I believe the cost of borrowing is the lowest we will ever see in our lifetimes. Combine that with incredible deals on foreclosures and short sells and you have a great opportunity.
I do enjoy that show but it bothers me from time-to-time. LOL. I just don’t like the personalities of the hosts…I’m exactly sure what I don’t like about their personalities but they rub me the wrong way.
It’s good to see you posting again…I was wondering where you’ve been! Repairing a house does take a lot of work so it makes sense why you haven’t been able to get many articles out. Glad to hear it’s coming along…now you you just need to decide if you love it or if you’re going to list it.
Jason @ WorkSaveLive recently posted..Paying Down Debt – Which Strategy Is Right for You?
I predict you will stay put. It’s a huge pain moving and it doesn’t sound like you have a huge compelling reason to move. Anyway, I’m sure you’ll have a lot of Fincon visitor this year and they can give you a face 2 face feedback.
Joe recently posted..Money Secrets
It sounds like it is a pretty good time, which I’m sure is why you are considering it. I guess I would look at how you would feel about the increased mortgage payment that you potentially face and the fact that you aren’t currently unhappy. If a new place is worth the leap than go for it.
Johnny@ Easy Financial Tips recently posted..How to Save Money Shopping Online
It sounds like you’re taking it slow and really thinking through everything, which is key. A few years ago, my husband and I got serious about upgrading. We put our home for sale and started looking. We really liked our home, but we wanted some a bit closer to the beach. In the end, we took our home off the market and stayed put. It was the right decision for us. But that might not be the right decision for you. The best advice I can offer is to continue to take it slow and figure out what matters most. For us, even though an increased mortgage payment was doable, it meant reducing our travel budget. We LOVE traveling and showing our girls new cultures, etc. We realized being able to travel they way we can meant more to us than a bigger home. Keep us posted and good luck!
Shannon @ The Heavy Purse recently posted..Weekly Roundup: February 11, 2013
Once you have your debt paid off, I say go for it. Make it your last home purchase and then focus on paying it off a bit early. Best of luck in your decision.
Jason @ frugalhabits recently posted..My Financial Advice for New Grads
I know we’re going to have this conversation in my household as our family grows and the place feels older and smaller. But for now, we are 100% happy with where we’re and and are updating slowly as well. Sounds like you’ve already started looking and may have given your heart to another home, but definitely continue to take your time on this decision. Excited to hear the outcome!
Jacob @ iheartbudgets recently posted..5 Reasons I Should Win An iPad Mini
You have a lot of good pros and cons there. I do feel your pain about the decision though as I’m still having a hard time deciding if I should stay in La or not…or where I would even go if I decided to move. I love everything about where I live…except how expensive it is! I don’t want to live life always “just making it.” I hope you come to a decision you’re happy with!
Budget and the Beach recently posted..This Video Will Change Your Life/Link Love
Glad you guys are thinking it through and not rushing into anything. It sounds like you guys have a great neighborhood now, so I’m curious about this new area that you’ve fallen in love with. Is it too good to be true ala Pleasantville?
Mrs. Pop @ Planting Our Pennies recently posted..The Costs of Running
Right now our home is just the right size for us. It would probably be fine if/when we have our first child, but after that it will likely be too small. Interested to hear more details about the possible new home.
KK @ Student Debt Survivor recently posted..Big Beer Companies Paid Me $350 Last Year
That’s one heck of a property if that’s your house, I’d need a few beers to mow that lawn. I’m pretty big on location and of course the neighbours. Homes on our street sell max 2 weeks and we’ve been watching who’s moving in and how they take care of the property. I have one neighbour that is not the greatest but the rest are awesome. They help out all the time and vice versa. There are schools and parks in our area and a short drive to all major shops. I think sitting down with your family is the right call and going over what you all really want. I’m sure you will make the right decisions but I can read where you are struggling. In the end… it will work out.
Canadianbudgetbinder recently posted..The Saturday Weekend Review #7~ Return Fraud Costs Big Bucks!
Wow, is that your house? If so, it’s beautiful. Sounds like you have a pretty good set up with the actual house and school zones – so important when you have kids.
Carpet in the bathroom, huh? Who does that? (We recently looked at a rental where the kitchen was carpeted – also weird).
eemusings recently posted..Boyfriend in the kitchen: Lamb rack and raw salad
I’ve got the home buyer’s bug as well, pretty bad. It’s unfortunate though because I’m no where near ready to buy a house. I can always dream though! Looking forward to hearing what you decide.
Jordann @ My Alternate Life recently posted..Weekend Personal Life Update