Want to downsize-Sell and take loss but save, or wait for appreciation?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Don't count the paint and carpet in your "loss." You would have spent something on any house you bought, in all likelihood.

OP here, yes, but I have 2 cats who spit up regularly (IBD and thyroid) and one of them loves to scratch and pull out the carpet fibers, so if we dont sell within weeks of the new carpet, that will be money down the drain. Same for the wood floors. And with the baby, the painting seems to be a huge hassle with all the fumes.

But I guess we have to do what it takes, and hoping the realtor will make it relatively easier.

Stay in the house! That baby is going to be a kid who wants a yard, not a tiny townhouse.

Yes this, bigger kids take up a lot more space.

[Anonymous]

Anonymous wrote:Where are you?

Location is always #1 issue: for price, for realtor commission , for everything!

Here's a suggestion: call a realtor or two and have them look it over. You'll get a better shot at a higher price with a well-backed realty company.

Said a hungray real estate agent who's lunch is being eaten by redfin.

[Anonymous]

I wouldn't sell a SFH for a townhome, esp with another kid on the way. A townhome is smaller, has no yard, and you're stuck paying an HOA. With a SFH you can get a used swingset, put it in the backyard, and let the kids go crazy. Hire a lawn service to mow your lawn every other week for $30 a pop. When your kids are older, add that to their list of chores and cross the yard maintenance off your list.

[Anonymous]

Anonymous wrote:If you leave a house with a dated kitchen and bath for a townhouse with new finishes, then you are just buying into another depreciating asset. You have to be willing to update the inside of the townhouse, or you will be losing money again when you sell a dated townhouse a few years down the line. Make sure that you aren't just moving for new and shiny. It's cheaper just to update your current place.

+1. You're paying for the land and structure in this area. Not the appliances and shiny fixtures. x refrigerator technically costs the same amount in Kansas as it does in Washington. However, the land certainly does not. Townhomes don't appreciate like sfhs do and they come with an hoa. I would never choose a townhouse over a house unless it was the only way I could afford to own and build equity.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you leave a house with a dated kitchen and bath for a townhouse with new finishes, then you are just buying into another depreciating asset. You have to be willing to update the inside of the townhouse, or you will be losing money again when you sell a dated townhouse a few years down the line. Make sure that you aren't just moving for new and shiny. It's cheaper just to update your current place.

+1. You're paying for the land and structure in this area. Not the appliances and shiny fixtures. x refrigerator technically costs the same amount in Kansas as it does in Washington. However, the land certainly does not. Townhomes don't appreciate like sfhs do and they come with an hoa. I would never choose a townhouse over a house unless it was the only way I could afford to own and build equity.

OP here.

This is interesting. We own rentals as well and I am not sure if TH vs SFH appreciation is any different? I thought location and schools were the deciding factor for appreciation rate.

Regarding HOA, we have to pay for trash and the Reston association in our SFH, so that is the same as the TH fees.

But yes the main reason for moving is the cost savings and schools, and for sense of community and the yard work as well. We just spent 1600 on our yard for maintenance and ground covers, and 1200 for sod, and the trees still need trimming and yearly checks. I am also worried about the trees and high winds during tornadoes. DH does the grass mowing. And our backyard slopes to a parkland so does not get any use, though yes the property is on half an acre of land.

And we dont use the basement or 2 out of the 5 bedrooms, so that is the space we would be giving up by moving from our 3500 sq ft SFH to a 2400 sq ft TH which seems adequate for a family of 4.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you leave a house with a dated kitchen and bath for a townhouse with new finishes, then you are just buying into another depreciating asset. You have to be willing to update the inside of the townhouse, or you will be losing money again when you sell a dated townhouse a few years down the line. Make sure that you aren't just moving for new and shiny. It's cheaper just to update your current place.

+1. You're paying for the land and structure in this area. Not the appliances and shiny fixtures. x refrigerator technically costs the same amount in Kansas as it does in Washington. However, the land certainly does not. Townhomes don't appreciate like sfhs do and they come with an hoa. I would never choose a townhouse over a house unless it was the only way I could afford to own and build equity.

OP here.

This is interesting. We own rentals as well and I am not sure if TH vs SFH appreciation is any different? I thought location and schools were the deciding factor for appreciation rate.

Regarding HOA, we have to pay for trash and the Reston association in our SFH, so that is the same as the TH fees.

But yes the main reason for moving is the cost savings and schools, and for sense of community and the yard work as well. We just spent 1600 on our yard for maintenance and ground covers, and 1200 for sod, and the trees still need trimming and yearly checks. I am also worried about the trees and high winds during tornadoes. DH does the grass mowing. And our backyard slopes to a parkland so does not get any use, though yes the property is on half an acre of land.

And we dont use the basement or 2 out of the 5 bedrooms, so that is the space we would be giving up by moving from our 3500 sq ft SFH to a 2400 sq ft TH which seems adequate for a family of 4.

not a good idea to live in a townhouse in the suburbs, maybe its ok in the city but even then you are short changing your family

[Anonymous]

use a rebate or flat fee agent to sell. dont price too high or you will chase the market down. Price at or just under what you think its worth (775k?). Lets say you net 500k ish.

instead of pouring all your cash into the TH (485k) with tiny mortgage, why not invest 250k and allow it to grow; finance the th with a 250k mortgage, you should still be able to swing the payments because reduced other costs, including a larger mortgage interest tax deduction and possibly better rates than you have now (not sure what you have), today they are around 3.75 for 30 year. that way you are not putting all your money into an asset that may or may not appreciate, you will diversify (esp if you own rentals, put that cash out of the RE market and into other markets).

fwiw, I dont think there's anything wrong with a 2400 sq ft townhome. I used to live in a 2200 sq ft sfh with a small yard and the kids used the local parks 90% of the time anyway. We hate lawn work too. Plus, getting better schools for your kid seems of bigger importance than having a yard.

[Anonymous]

Anonymous wrote:use a rebate or flat fee agent to sell. dont price too high or you will chase the market down. Price at or just under what you think its worth (775k?). Lets say you net 500k ish.

instead of pouring all your cash into the TH (485k) with tiny mortgage, why not invest 250k and allow it to grow; finance the th with a 250k mortgage, you should still be able to swing the payments because reduced other costs, including a larger mortgage interest tax deduction and possibly better rates than you have now (not sure what you have), today they are around 3.75 for 30 year. that way you are not putting all your money into an asset that may or may not appreciate, you will diversify (esp if you own rentals, put that cash out of the RE market and into other markets).

fwiw, I dont think there's anything wrong with a 2400 sq ft townhome. I used to live in a 2200 sq ft sfh with a small yard and the kids used the local parks 90% of the time anyway. We hate lawn work too. Plus, getting better schools for your kid seems of bigger importance than having a yard.

OP here, thank you, this seems good advice for my situation, yes one of the goals is to reduce our RE assets.

[Anonymous]

OP, I really think you are going to regret this in a few years when your kids are older. And yes, it is a provable fact that SFHs appreciated faster than townhouses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you leave a house with a dated kitchen and bath for a townhouse with new finishes, then you are just buying into another depreciating asset. You have to be willing to update the inside of the townhouse, or you will be losing money again when you sell a dated townhouse a few years down the line. Make sure that you aren't just moving for new and shiny. It's cheaper just to update your current place.

+1. You're paying for the land and structure in this area. Not the appliances and shiny fixtures. x refrigerator technically costs the same amount in Kansas as it does in Washington. However, the land certainly does not. Townhomes don't appreciate like sfhs do and they come with an hoa. I would never choose a townhouse over a house unless it was the only way I could afford to own and build equity.

OP here.

This is interesting. We own rentals as well and I am not sure if TH vs SFH appreciation is any different? I thought location and schools were the deciding factor for appreciation rate.

Regarding HOA, we have to pay for trash and the Reston association in our SFH, so that is the same as the TH fees.

But yes the main reason for moving is the cost savings and schools, and for sense of community and the yard work as well. We just spent 1600 on our yard for maintenance and ground covers, and 1200 for sod, and the trees still need trimming and yearly checks. I am also worried about the trees and high winds during tornadoes. DH does the grass mowing. And our backyard slopes to a parkland so does not get any use, though yes the property is on half an acre of land.

And we dont use the basement or 2 out of the 5 bedrooms, so that is the space we would be giving up by moving from our 3500 sq ft SFH to a 2400 sq ft TH which seems adequate for a family of 4.

So the cost of trash pickup is truly more than the hoa for your townhome? The hoa is either incredibly low or you're getting gouged by the trash collector.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you leave a house with a dated kitchen and bath for a townhouse with new finishes, then you are just buying into another depreciating asset. You have to be willing to update the inside of the townhouse, or you will be losing money again when you sell a dated townhouse a few years down the line. Make sure that you aren't just moving for new and shiny. It's cheaper just to update your current place.

+1. You're paying for the land and structure in this area. Not the appliances and shiny fixtures. x refrigerator technically costs the same amount in Kansas as it does in Washington. However, the land certainly does not. Townhomes don't appreciate like sfhs do and they come with an hoa. I would never choose a townhouse over a house unless it was the only way I could afford to own and build equity.

OP here.

This is interesting. We own rentals as well and I am not sure if TH vs SFH appreciation is any different? I thought location and schools were the deciding factor for appreciation rate.

Regarding HOA, we have to pay for trash and the Reston association in our SFH, so that is the same as the TH fees.

But yes the main reason for moving is the cost savings and schools, and for sense of community and the yard work as well. We just spent 1600 on our yard for maintenance and ground covers, and 1200 for sod, and the trees still need trimming and yearly checks. I am also worried about the trees and high winds during tornadoes. DH does the grass mowing. And our backyard slopes to a parkland so does not get any use, though yes the property is on half an acre of land.

And we dont use the basement or 2 out of the 5 bedrooms, so that is the space we would be giving up by moving from our 3500 sq ft SFH to a 2400 sq ft TH which seems adequate for a family of 4.

Sfhs in this area have appreciated faster because of the land. A townhome is on a much smaller piece of land. You don't have the ability to add on or make as many improvements. It's harder to change the appearance of your home and townhomes become dated because of this limitation. It's much cheaper to buy a townhouse than a house and for a reason. That being said, there isn't anything wrong with a townhouse. Just understand why it is less expensive and make sure you're okay with the limitations, including space and land.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you leave a house with a dated kitchen and bath for a townhouse with new finishes, then you are just buying into another depreciating asset. You have to be willing to update the inside of the townhouse, or you will be losing money again when you sell a dated townhouse a few years down the line. Make sure that you aren't just moving for new and shiny. It's cheaper just to update your current place.

+1. You're paying for the land and structure in this area. Not the appliances and shiny fixtures. x refrigerator technically costs the same amount in Kansas as it does in Washington. However, the land certainly does not. Townhomes don't appreciate like sfhs do and they come with an hoa. I would never choose a townhouse over a house unless it was the only way I could afford to own and build equity.

OP here.

This is interesting. We own rentals as well and I am not sure if TH vs SFH appreciation is any different? I thought location and schools were the deciding factor for appreciation rate.

Regarding HOA, we have to pay for trash and the Reston association in our SFH, so that is the same as the TH fees.

But yes the main reason for moving is the cost savings and schools, and for sense of community and the yard work as well. We just spent 1600 on our yard for maintenance and ground covers, and 1200 for sod, and the trees still need trimming and yearly checks. I am also worried about the trees and high winds during tornadoes. DH does the grass mowing. And our backyard slopes to a parkland so does not get any use, though yes the property is on half an acre of land.

And we dont use the basement or 2 out of the 5 bedrooms, so that is the space we would be giving up by moving from our 3500 sq ft SFH to a 2400 sq ft TH which seems adequate for a family of 4.

So the cost of trash pickup is truly more than the hoa for your townhome? The hoa is either incredibly low or you're getting gouged by the trash collector.

HOA is 100, trash is 20 and Reston association is 50. Moving will also reduce heating, cooling and the big one is taxes and yard work expenses.

However the point about appreciation is making me think, maybe we downsize to a 2500 sq ft SFH for around 600k in a better school district and maybe one with a HOA for lawn mtc and a smaller backyard?

[Anonymous]

You're being silly about the hoa and lawn maintenance. You don't need an hoa. You're paying someone else to manage your yard and you're losing control. Simply hire someone to do your yard. And yes, townhomes really don't appreciate as quickly as houses. I'm not talking about a rowhouse but a townhome with an hoa and new build.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you leave a house with a dated kitchen and bath for a townhouse with new finishes, then you are just buying into another depreciating asset. You have to be willing to update the inside of the townhouse, or you will be losing money again when you sell a dated townhouse a few years down the line. Make sure that you aren't just moving for new and shiny. It's cheaper just to update your current place.

+1. You're paying for the land and structure in this area. Not the appliances and shiny fixtures. x refrigerator technically costs the same amount in Kansas as it does in Washington. However, the land certainly does not. Townhomes don't appreciate like sfhs do and they come with an hoa. I would never choose a townhouse over a house unless it was the only way I could afford to own and build equity.

OP here.

This is interesting. We own rentals as well and I am not sure if TH vs SFH appreciation is any different? I thought location and schools were the deciding factor for appreciation rate.

Regarding HOA, we have to pay for trash and the Reston association in our SFH, so that is the same as the TH fees.

But yes the main reason for moving is the cost savings and schools, and for sense of community and the yard work as well. We just spent 1600 on our yard for maintenance and ground covers, and 1200 for sod, and the trees still need trimming and yearly checks. I am also worried about the trees and high winds during tornadoes. DH does the grass mowing. And our backyard slopes to a parkland so does not get any use, though yes the property is on half an acre of land.

And we dont use the basement or 2 out of the 5 bedrooms, so that is the space we would be giving up by moving from our 3500 sq ft SFH to a 2400 sq ft TH which seems adequate for a family of 4.

So the cost of trash pickup is truly more than the hoa for your townhome? The hoa is either incredibly low or you're getting gouged by the trash collector.

HOA is 100, trash is 20 and Reston association is 50. Moving will also reduce heating, cooling and the big one is taxes and yard work expenses.

However the point about appreciation is making me think, maybe we downsize to a 2500 sq ft SFH for around 600k in a better school district and maybe one with a HOA for lawn mtc and a smaller backyard?

Yea go with a small house if you can. Where we live even the smallest house was 200k more expensive than the TH we got, and we knew were giving up future appreciation in order to have flexibility ( we want option to SAHM). And honestly who knows how market will do; if we see decline you have more money on the line with a SFH. I think we will see strong appreciation in market but I definitely like smaller mortgage.