I Could Make a $250,000 Profit Selling My Home Today. Here's Why I Won't

Trust me when I say I have my reasons.

Many prospective home buyers are struggling with the fact that property values are soaring. But some people are benefiting from sky-high home values.

Take existing property owners, for example. Those looking to downsize have the potential to profit nicely by selling their homes. And those not looking to sell have more options for borrowing against their home equity.

As is the case for many people today, my home happens to be worth a lot more right now than it was a couple of years ago. In fact, recently, a real estate agent contacted me with an offer that would leave me with a $250,000 profit on my home. But while that's a staggering amount of money, I won't be selling for a few big reasons.

1. I won't really make money

The extra $250,000 I might make by selling my home? It won't really be mine to keep. That's because I'll probably end up having to spend that much to buy a replacement home. 

At this point in my life, I'm not looking to downsize. I have three school-aged children and a large dog, and we're not looking to shed square footage. So what I gain by selling my home, I'll lose in the form of paying a premium for another one.

2. I'll get stuck with a higher mortgage rate

In mid-2020, my husband and I made the decision to refinance. Since rates were so low at the time and we were able to take out a 15-year loan, we now pay very little interest on our mortgage. 

If I were to sell my home and buy another one, I'd need a new mortgage. And since borrowing rates are much higher these days, that would mean signing up to pay a lot more interest. That's money I'd rather invest or keep for myself.

3. I don't want to move

I know what it takes to pack up a house from top to bottom, and it's a task I'm really not up for these days -- not with a full-time work schedule and a busy schedule of activities for my kids. Plus, moving is expensive. And since we have a lot of stuff, I'd expect even a local move to cost a few thousand dollars. 

What’s more, I know full well that moving even a few minutes away might result in having to pull my kids out of their current schools. That's not something I'm looking to do.

I'm not tempted at all

You'd think a $250,000 profit would inspire me to at least contemplate an offer on my home. But actually, it doesn't entice me at all given the state of the real estate market and my lack of desire to uproot my family right now. 

The truth is that a lot of people could make a decent amount of money by selling their homes today. Because the housing market sorely lacks inventory, buyers are desperate to scoop up properties, and many are making generous offers as a result. But before you rush to pursue a tempting offer on your home, think about whether you'll actually come out ahead financially in the process. You may find that staying put is really your best bet.