No, not currently much interest in savings. Read Janet Yellen's response to Nader yesterday on precisely this (Bloomberg.com).

Factor in opportunity lost costs, too OP. If the opportunity gains from getting out exceed staying, then it may be time to take the loss.

No one knows tomorrow's future in the housing market. Not even our overconfident county/city tax assessors and board or council members.

Hmm. Unless you're going to die in that house, at some point you're going to have to pay those closing costs. And the more the house costs, the more those closing costs will be. And while the house might appreciate, the cost of the townhouse will also likely go up, so I'm not sure waiting a few years to sell makes a ton of sense. If moving is the ultimate goal, it's either take the hit now or take the hit later.

You can also generate interest on all the money you'll be saving, so there's that to factor in.

What about the hoa with the townhouses? Those tend to always go up over time.

if your moving to save money it looks like the margin is to thin and one wrong turn and you may end up in a townhouse for the same price as a single family home. If you would prefer to live in the townhouse, vs the sf then go for it!

Anonymous wrote:Someone on another thread mentioned Glass House Real Estate. I believe it's a flat fee (maybe 1%). I'm not sure, haven't used them, but it sounds like an interesting concept.

We used them to buy a house and was very satisfied with their service.

Someone on another thread mentioned Glass House Real Estate. I believe it's a flat fee (maybe 1%). I'm not sure, haven't used them, but it sounds like an interesting concept.

Anonymous wrote:

Anonymous wrote:Don't use a traditional realtor and save yourself $18k through reduced commissions.

Thanks but how? We have never sold a house before.

Here is a good calculator
https://www.redfin.com/sell-a-home/home-sale-proceeds-calculator

Your Estimated Proceeds for 750K w/ a 685k mortgage
Redfin
$33,000
vs.
Traditional
Broker
$18,000

Anonymous wrote:OP, don't forget to factor in the lost of the mortgage deduction credit on federal taxes when going from 200K to 65K in your annual calculation.

Not saying don't do it though.

Valid point, but my goal is to be mortgage free, we would most likely save up the 65K before we move. I was just using 65K in mortgage, so we do a fair comparison of cost savings. Also we are high income as per IRS, so dont think we get full deductions.

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.

In the NoVA suburbs, but in a nice part of Reston, 3 miles from Metro. Homes have appreciated though modestly in last 4 years, so realtor (who has sold our neighbor's house recently and this house as well 10 yrs ago) said we can list for 775K. But then there is an updated house in our street (new kitchen, new bath) that keeps coming and going off the market for last 3 years, reduced over 100K and now is at 750K and has had many contracts fall through. I really think something is wrong with that house, maybe paperwork or permits, though it is picture perfect as opposed to ours which is really nice and well maintained, but has dated kitchen and baths and an uneven backyard.
So if it comes back on market, we might have to go down further in price, but obviously we wont sell in that case.

OP, don't forget to factor in the lost of the mortgage deduction credit on federal taxes when going from 200K to 65K in your annual calculation.

Not saying don't do it though.

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.

Anonymous wrote:Don't use a traditional realtor and save yourself $18k through reduced commissions.

Thanks but how? We have never sold a house before.

Don't use a traditional realtor and save yourself $18k through reduced commissions.

Just sell if you want to sell and can afford it. Remember that the townhouse you want to buy will be appreciating along with your house, so it will probably be a wash.

We bought for 750K in 2011, and the house is too big for our needs and yard work is way more than we anticipated.
We can move to a 550K townhouse and it has better schools, more compatible community/neighbors and minimal yard work.

If we sell now for 750K (worst case), we take a 65K loss due to realtor fees, paint, carpet etc. Our mortgage is 200K, and we net 485K. So new mortgage will be really small ~65K.
This will lead to a saving of $600 per month on mortgage (65K vs 200K) and another $500 monthly savings on upkeep (utilities, property tax etc) on the smaller TH. So saving of 1K per month, 12K per year. Plus the improvement in quality of life.

So in 5 yrs we would have gained back the 65K lost.

Does this calculation make sense, or should we just wait for it to appreciate so we can break even on the purchase price after the selling costs?