I Have an Affordable House, But I Still Want to Sell My House.
I have an affordable house, but I still want to sell my house. Just how affordable is my house? Well it’s full disclosure time.
My monthly payment is $918.25 a month. This includes:
- the mortgage payment,
- the insurance, and
- the taxes for my home.
My itemize tax benefit is $1493.25 a year. $1493.25 / 12 = $124.43 a month
Making my “net payment,” $918.25 – $124.43 = $793.82 a month.
I also get approximately $175 a month of equity per payment.
Making my “net payment,” $793.82 – $175 = $618.82 a month.
And finally, I work at home for my full time career and I can reclaim my City of Cincinnati tax (2.1%), which should work out to almost $900 a year, or $75 a month.
Making my “net payment,” $618.82 – $75 = $543.82 a month, for a 3 bedroom / 2.5 bathroom, double car garage, island kitchen, fenced in yard house in one of the better school districts in Ohio (rated 1,068 in the national, 42nd in state as of May 5th, 2012). If I was to rent this house, it would approximately $1200 or $1300 a month.
Yet, I still want to sell my house.
Why in the world would I want to sell my house when I am paying literally less than half what it would cost? Some reasons why.
- Walk-ability of my home is zero. Completely car dependent, I hate it.
- Yard-work is an unpaid labor of love for your house
- Maintenance isn’t free (think roof, windows, ac, furnace, etc.)
- Updating your home isn’t free (“I want hardwood”)
- Things break (the thermostat isn’t working, washer isn’t spinning, etc.)
- The commute downtown is a bit much, and I find myself avoiding things in downtown Cincinnati because of the traveling time.
- I am “done” rehabbing this house, and feel it is time to move on to the next project.
- I have a couple of neighborhoods closer to the city that are absolutely 100% calling me, whether it be renting or owning when I get there.
- Who doesn’t like flexibility? Owning a home can make you feel trapped.
- Because of such a good payment, I can be very picky on my selling price.
- I should walk with a solid $25,000 – $30,000 in cash from the sale of my house.
- My neighbor just sold her house for an amazing price, which makes a “comp” for my house to sell.
- Interest rates rebounding could result in very painful losses within the housing market in the long-term.
The decision to consider selling my house isn’t a “spur of the moment decision,” and I am certain I will end up over-thinking it further in the near future. That being said, I plan on meeting with a broker most likely by the end of 2012 or early 2013 to figure out my exact options and potential payouts.
I think the ultimately reason I am leaving though, is I don’t see myself in this house 5 years from now and I feel it is time to “reset.” The amount of equity I build each year is not enough to justify staying another 1-5 years (would be about $11k in 5 years).
Have a story about your home purchase? Share it in the comments.
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