So after the debacle with our renting situation last week, I thought it would be smart/fun/interesting to see what our house could sell for shall we put it on the market instead of renting it out. Ya know – in case I lose my mind and just say “F it” one of these days (only a 1% chance of happening btw, but you never know ;))
It’s been almost exactly a year since the last time we updated it (when our neighbors sold theirs for $285,000), so figured it’s about time to get it checked out again anyways. And anytime we do we usually just hit up our realtor who runs comps and gives us a good sense of what he thinks it would *actually* sell for vs what computers say. Another reason I don’t like to use Zillow or the likes which thinks our house increases $10k a day and then loses $30k another. It’s way too all over the place for me to take it seriously, so I just go straight to the source who would be selling it for us on the day we finally decide to do so. (I have heard others have better success with Zillow though, fwiw)
And to my surprise he said values in our area are on the rise! The first time since starting this blog really that I’ve heard such a thing ;) That’s over 5 years of dropping values!! So needless to say it pepped me up a bit more and got me excited again that we actually own. It’s just so crazy to me that the same exact property can gain and lose hundreds of thousands of dollars just because of “the market.” IT’S THE EXACT SAME HOUSE!! Haha… well actually that’s kinda a lie now though since we dumped $20k of renovations into it, but you get the point ;)
So our realtor ran the comps (comparisons) of recently sold houses in our neighborhood, and they ranged from $300,000 on up to $320,000 – all for similar beds/baths and square feet for the most part (the $320k one actually had 1 more bedroom than ours). Not as good as the heyday where they were all in the $360k+ range, but still very welcome news after all the nonsense that went down in this housing crisis. And all of which are better than the $285,000 we last pegged it at :)
I then asked him what he’d list it for on the market TODAY if we were so inclined to do so (btw he knows the ins and outs of not only our home since he sold it to us originally, but also the whole community where he’s lived and represented for over 30 years now), and he said he’d have no problems listing it for a cool $310,000. And said more than likely it would sell for around that or a little less after negotiations.
Now again we’ve since dumped $20k into making ‘er prettier, but still. If the market continues to climb over the years and we continue to pay down the debt, we could soon be out of “underwater” territory and into the PROFIT region – *gasp*! I have yet to know what that feels like as the market crashed the day we bought the place ;) Haha… well not on THE day, but it sure as hell felt like it.
This ALSO means that the ol’ refinancing plan could again be a possibility one day too! Cuz if you recall the last time we tried (approx 4 months ago) the banks were going on the $285k number which meant we had to come up with literally $100,000 when all was said and done just to play ball. (We would have had to pay it down enough first to get it not underwater, and then even more as a 20% “down payment” on the place. Very un-fun to think about, though very fun to scheme :)). With all the moving and life changes going on we put the whole thing on pause and haven’t thought much of it since, but it would be interesting to see what the options would be now with the markets doing a bit better. I suspect the situation might be the same though, just with a lower number we’d need to bring to the table in the end ($70,000 to $85,000). Which would still be pretty un-doable…
Anywho, all exciting stuff to think about. None of it really matters TOO much until we actually go and either put it on the market or try and get it refinanced again, but it all helps me feel better about the situation nonetheless. Even as just a distraction from all my panicking for a hot minute or two ;)
I think I’ll just list the home’s value at a flat $300k too for net worth purposes and lean on the more conservative side. That way it gives us some wiggle room both on the negotiation side AND the market lumping side, and then hopefully we won’t have to think about it much anymore once we get a dang renter in place… That’s still the dream and plan for the near future: to rent it out for a year or two and then see how we like it and re-evaluate from there.
So we won’t be selling it anytime soon, but at least we have a better idea of the situation and can sleep a tad better at night ;) Hopefully you’re seeing similar increases in your neighborhoods too!
stupid frustrating more satisfying home ownership!
(Photo by juliejordanscott)
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!