Selling our big house - need some reassurance I'm doing the right thing.

[EXLIer]

I read this forum a lot. Post a little.  I don't have anyone with the same mindset/goals as myself to lean on for advice. 

A while back we decided to sell out large house ( 5,500 sq/ft ) and buy something smaller.  For many reasons.  The biggest reason being the big house consuming large amounts of our disposable income to finish and maintain.  This house is in a great area with impeccable and unbelievable views.  I love it and will miss it but realize I'm not willing to invest the labor myself ( I'm capable ) nor the finances needed to finish it.  We'd rather travel to be honest.

We paid $450K for it and have put about $50K into it.  We have an offer for $505K.  Owe ~$275K.

One of the issues I'm having is finding and buying another house in this market.  Cheaper houses ( $200-$300K ) are selling like wild fire.  The market is fairly hot and I'm skeptical to jump in.  Also, we're relegated to a certain geographic area and where we currently reside is probably the absolute best spot.

On the other side, in 4 years we might move to Italy for a year and since the  market is fairly robust, perhaps now is the time to sell.  4 years is a long time to rent, and fairly short time to buy, so I'm lost. 

I have another hour to counter their offer.

[Northwestie]

If it's a decent offer in your market then take it.  I'm not clear why you are opposed to renting - especially if you may be moving in 4 years to Italy.  It would be difficult to recoup the fee/closing costs in 4 years unless your market is booming.  Might be a good time to take a deep breath, rent for a bit, and see which way your life is moving.

[bebegirl]

I am renting during 10 years. Due to this I was able to catch up on savings and investments. What's wrong with renting? You will have much more money and much less hustle if you rent.

[Slee_stack]

I also don't understand people's aversion to renting.  Certainly there's some inconvenience and risk, but home ownership has similar crap to deal with.


Also, 5500 s.f?!  Holy Warehouse Batman!  And to think I was shocked with people having ~3k sf.

I get enjoying the location, but that size house would drive me absolutely bonkers.  I might start doing weird things like setting up an indoor sand volleyball court, skeeball room, or some other such nonsense.  I just hate stuff sitting idle/unused.

Sell if you get a good offer and rent a place. 

[hucktard]

Could you rent out a room or two? In my opinion there is nothing wrong with having a big house as long as you use it to make some income.

We have rented out rooms in our house and overall it has been a very good thing.

[EXLIer]

Thanks everyone for the replies.

I countered and am waiting.  I think I'm going to take the money and run.  Gonna rent for a while ( maybe all 4 years ) and bank some of the money, and use some to travel more with the family.

We thought about renting a room or even two, but we don't like when family and friends overstay, so not sure how much we'd like most renters. 

Also, the house needs finishing - to the tune of ~$100K.  I'm just not willing to have ~$600K tied up in a house we don't use nor need. 

I'm tired of maintaining a a house.  We're so busy, that when I do have free time, I'd rather go for a bike ride, or something more fun.  I'll leave my real estate asset building to my income producing properties for now. 

[deborah]

Sounds like you're making a good decision by selling it.

[EXLIer]

Thanks everyone.  DONE DEAL.  Cash buyer and the transaction will go fast.

Now I need to decide wether to rent, buy something either inexpensive or maybe a fixer, or rent.

It'll be nice to stash the $200K +/- away.  Probably use it to purchase another commercial rental property

[RedwoodDreams]

Congratulations on taking the plunge and acting on your inclinations. Just reading '5000 sq ft house' made me want to breathe into a paper bag.

Sure, it works for some people, but if your thing is freedom, being outdoors, relaxation, travel, and fun, the giant house just becomes a harness. And you have the option, it sounds like, of buying but not having a mortgage (or letting the proceeds grow as you pay off a low interest mortgage on a new place), now that is freedom!

[act0fgod]

Now I need to decide wether to rent, buy something either inexpensive or maybe a fixer, or rent.

It seemed like one of the big reasons you are selling/sold the larger house is the upkeep and requirement to fix up 100k worth of things.  Why are you considering buying a fixer at a lower cost?  Aren't you still going to want to do other things with your free time despite being in a smaller house?

[EXLIer]

Now I need to decide wether to rent, buy something either inexpensive or maybe a fixer, or rent.

It seemed like one of the big reasons you are selling/sold the larger house is the upkeep and requirement to fix up 100k worth of things.  Why are you considering buying a fixer at a lower cost?  Aren't you still going to want to do other things with your free time despite being in a smaller house?

I don't want to overpay, and with the market the way it is now, I fell the best way to hedge against that is either renting, or buying a small fixer at a bargain price. 

I can handle DIY projects on small to normal scales.  Sweat equity is good - didn't the founder of this blog/forum do the same?

This house was just too big for a solo DIYer.  When we bought it from the bank, the previous owners decided to rid the house of many things.  Lights, doors, water heaters, etc.  Just to finish the doors I needed to miter, stain & hang 46 of them. 

[MrGreen]

Just to finish the doors I needed to miter, stain & hang 46 of them.

46 doors?!?!?!?! Holy fuck! Did it have that hallway from the last Matrix movie? ;)

[MsPeacock]

Now I need to decide wether to rent, buy something either inexpensive or maybe a fixer, or rent.

It seemed like one of the big reasons you are selling/sold the larger house is the upkeep and requirement to fix up 100k worth of things.  Why are you considering buying a fixer at a lower cost?  Aren't you still going to want to do other things with your free time despite being in a smaller house?

I don't want to overpay, and with the market the way it is now, I fell the best way to hedge against that is either renting, or buying a small fixer at a bargain price. 

I can handle DIY projects on small to normal scales.  Sweat equity is good - didn't the founder of this blog/forum do the same?

This house was just too big for a solo DIYer.  When we bought it from the bank, the previous owners decided to rid the house of many things.  Lights, doors, water heaters, etc.  Just to finish the doors I needed to miter, stain & hang 46 of them.

46.  Good gracious. Including exterior doors there are only 10 door in my house...

[deborah]

I have a BIG house with 13 interior doors (not a HUGE 5000 sq foot house though). They must be very small rooms - or maybe every door is a double door.

[esq]

Sellers aren't supposed to take stuff attached to the house.  Can't imagine what they did with all those doors.  3300 s.f. here and we only have 26.

Congratulations on the sale with a cash buyer to boot.  Best of luck with all your plans.

[Sloeginfizz]

He said they bought it from the bank, so it would have been a foreclosure. So the previous owner wouldn't have been the seller. No, people aren't supposed to take stuff in a foreclosure situation either but many times they do anyway. I used to work as a legal assistant in foreclosure and I heard about many situations where the former striped the house for anything that could be sold. Or just for spite sometimes.

Or on the lighter side, maybe he built a new house with the doors.

http://freshome.com/2007/07/08/house-made-of-doors/

[clarkfan1979]

I own two single family homes that are rentals and we currently rent a 1 bedroom apartment. There is nothing wrong with renting. Run the numbers. If it makes sense to rent, then rent. If it makes sense to buy, then buy.

When the number makes sense to rent, I think people are hesitant because they seek the social status of home ownership. Screw that and what other people think.

If there is a severely depressed house that is cheap and you can pay cash, then do that. When you fix it, take out a loan.

[Metric Mouse]

Sounds like you're making a good decision by selling it.

This.  Staining and hanging 46 doors sounds like another whole job.  I'd quit and take the severance (sell and cash out)  Renting sounds like a no brainer at this point.

[adamcollin]

 Selling the house can be a profitable deal for you.

[Slee_stack]

Haha 46 doors!!

Instead of square footage, I might start asking people what their door count is!

We have 11 including our exterior side 'shed'.  We live in a 'tiny' 1500 sf house, of which we still don't use one of the rooms much.

[Metric Mouse]

Haha 46 doors!!

Instead of square footage, I might start asking people what their door count is!

We have 11 including our exterior side 'shed'.  We live in a 'tiny' 1500 sf house, of which we still don't use one of the rooms much.

Ha! 16 here. Unless closet bifolds count as two? That's just interior doors... I have four exterior doors.... It's my dream house, but still easily face-punch worthy...

[boarder42]

yeah i've got 24 in 3600 sq ft plus 4 exterior

[Much Fishing to Do]

Other than the pain of moving twice, I think the need everyone seems to have to move from one owned house into another is pretty overboard.  Sell your house when you get a good offer (sounds like you did), and buy another one that is just what you want where you want it for a good deal.  Maybe that means you rent a year, or two, and maybe at that point you find yourself leaving the area so you;re not looking at all there.  Residential leases are almost always one year, you're not making any kind of long term decision so give yourself the time you need.

[the_fixer]

The wife and I both agree that the best thing we did was sell our ~4800 square ft house.

It is amazing the amount of time, money and quality of life that you will get back.

http://forum.mrmoneymustache.com/throw-down-the-gauntlet/right-size-my-life/ 

Conrats!

[EXLIer]

The wife and I both agree that the best thing we did was sell our ~4800 square ft house.

It is amazing the amount of time, money and quality of life that you will get back.

http://forum.mrmoneymustache.com/throw-down-the-gauntlet/right-size-my-life/ 

Conrats!

Thanks!  Inspection is today, so we're moving ahead! 

We're either going to rent or buy.  Trying to keep it a low as possible.  Probably looking at $1,300/mo or about $250K on a purchase.

It's a weird feeling.  This was our dream house, but it also became an albatross - in regards to time, maintenance and money.  It'll be saddening to see it go, but I look forward to the reduced obligations and responsibilities.

[Spitfire]

With closing costs, taxes, and maintenance on a purchase, the $1300/mo of rent seems pretty good.