I live in the suburbs of New Jersey, and there's nothing particularly special about my town. I'm not saying it's a bad place to own a home -- the schools are good, and there are plenty of nearby amenities, from parks to restaurants. But my town happens to have a really high property tax rate, whereas most nearby towns don't charge as much.
That said, one thing that makes my town unique is that it offers easier access to New York City than most neighboring towns do. Not only are many streets -- mine included -- within walking distance to an express bus stop, but there's also a train. And while a lot of people are still working remotely as a result of the pandemic, that situation could change soon. As such, I do see why some suburban-bound buyers might favor my town over another.
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Such was the case recently when a real estate agent contacted me out of the blue with an offer I almost couldn't refuse -- she had a buyer who was willing to pay me a whopping amount of money for my house. While I'm not going to share the specific number, let's just say that it was easily $100,000 or more above what I think my home is worth, even in a strong housing market.
I was tempted to contemplate that offer for about seven seconds. But I immediately shut it down for one very big reason.
There's little to be gained by buying and selling simultaneously
In today's real estate market, sellers clearly have the upper hand. And I know a couple of people who have done really well for themselves by selling their homes at an ultra-high price point, downsizing, and pocketing the difference.
The problem for me, however, is that I can't downsize. I have three young children at home, not to mention a large dog who needs access to a decent-sized backyard to run around in. So, if I were to sell my house and move, I wouldn't seek out a smaller one. Rather, I'd seek out a comparable one. And chances are, going that route would negate most, if not all, of the profit I'd enjoy by selling my house at a really high price.
Now, at this point, I do have a decent amount of equity built up in my home. So, if I were looking to make a major change -- say, buy a comparable home in a less expensive part of the country -- selling could make sense. And since I work remotely, it's tempting to leave New Jersey, what with its highest property taxes in the nation.
But right now, we're a bit tethered to New Jersey because my husband doesn't have a remote job, and his office is here. And my children, like all children, have experienced their share of upheaval during the pandemic. I'm not really looking to pile onto that by yanking them out of their comfort zones and relocating to another state 15 hours away.
Mortgage rates are a factor, too
Another big reason I don't plan to sell anytime soon? Doing so would mean I's have to get a new mortgage. And so far, rates are up this year in a very meaningful way.
Meanwhile, when rates fell to historic lows in 2020, I took advantage and refinanced my mortgage. So, selling my home would also mean losing out on the fantastic rate I locked in.
The right decision
All told, there's really not much to be gained by selling my home, so despite the very generous offer I received, I'm sticking to that firm no.
Even though I like the idea of walking away with a giant profit on my home, I'm convinced I'll lose most, if not all of it, by selling and then buying at the same time. So, I might as well spare myself the hassle of having to pack up my belongings and uproot my family for what could end up being a small amount of financial upside at the end of the day.
