I could make a big profit selling my home now -- but here's why I won't.
When my husband and I bought our home a little over 10 years ago, we were excited to purchase a new construction that was built from the ground up. But shortly after we closed on our home, property values began to tank across the board. Within two years of signing our mortgage, our home was suddenly worth $50,000 less than its initial purchase price.
But these days, home values are soaring on a national level. Low mortgage rates and limited housing inventory are driving property values upward. If we were to sell our home today, we'd likely walk away with a good $150,000 more than we originally paid. But tempting as that may be, here's why we won't be selling our house anytime soon.
1. We don't want to pay a fortune for another house
We stand to make a decent profit on our current home. But if we sell it today, we'll also have to pay a premium for another home. And that's something we don't want to do.
My husband and I have talked about upsizing through the years, but the reality is that our home is pretty large to begin with. Plus, if we upsize, we'd raise our housing costs significantly. Since we have other things we like to spend our money on -- travel, entertainment, and good food -- selling is not really worth it. We'd have to buy a pricier property to move into, which would wipe out our profits.
2. We recently refinanced our mortgage
When mortgage rates really started dropping this past summer, my husband and I made the decision to refinance our home loan from a 30-year mortgage to a 15-year mortgage. In doing so, we actually increased our monthly payment, but we also set ourselves up to save a lot of money on interest in the long run.
If we were to move to a more expensive home, we'd likely need to take out a 30-year mortgage, and pay more money in interest over time. We'd also push back our mortgage payoff clock. If we stay on our current track, we'll be free of housing debt well ahead of retirement.
3. We don't want to uproot our kids
My children have been through a lot in the course of the pandemic. They've spent almost an entire year learning remotely without setting foot in a classroom, they've been denied play dates with their friends, and they've had to do their extracurricular activities over Zoom. My kids have taken the events of the past year in stride. Even so, the last thing they need is to have to start over in a brand-new school district where they don't know anyone and are unfamiliar with their surroundings. We'd rather keep them where they are, at least until things improve on the pandemic front.
These days, a lot of homeowners have a chance to sell their properties and walk away with large profits. But remember, if you're selling and buying at the same time, what you gain by unloading your home for top dollar, you lose by paying top dollar for another place to live. Ultimately, that's the main reason we don't want to sell, though the other two reasons are a big part of that decision as well.
The good news is that we're content with our current home. It's spacious, comfortable, and large enough for all of us to maintain some degree of privacy while we're cooped up together. And while it's lost some of its new construction charm -- 11 years and child-induced wear and tear will do that -- it's still a pretty decent place to live.
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