
You probably thought this was going to be another post about how I injured Seth. Fortunately, Seth is fine. But by now you might have guessed the big news I was alluding to in my previous post. We sold our house! We put our house on the market in October, and after four long months and several low offers and reducing the list price once, we sold for $5,000 under list price. This is pretty good in our neighborhood. Home prices are falling FAST in our neck of the woods, and there's a foreclosure on our street that is listed for $170,000 less than our home. Ouch! Some of the other houses on our street have gone for $30,000 or more below list price. So we're feeling pretty good. Although we lost money--$52,000, to be precise--we feel like we've stopped the bleeding.
Let me back up a bit, and tell you why we decided to sell our house. First of all, while we both like our house a lot, I can't say we really LOVE our house. (Mistake number one when buying a house!) There are definitely things I love about it, and that I will dearly miss. I love the hardwood floors (although they are so beat up after just a year and a half), I love the huge back yard (even though there are many trees that need to be removed and it's too shady to grow grass in more than half the yard), I love having the basement playroom with the full bath, I love the huge laundry room (although it would be nice to have a laundry room upstairs), I love the garage with the work bench, I love our neighbors on one side, and I love how close we are to the elementary school. But there are lots of things I don't love. I like the layout, but the dimensions of all the rooms are a bit too small (except the basement and master bedroom). It's very hard to fit furniture into the rooms. (It's a good thing we don't have any decent furniture!) The kitchen is pretty small, and doesn't have enough drawer space, nor does it have a nice big pantry! The master bathroom is kind of weird, because the area with the sinks is open to the bedroom.
So anyway, when we moved in, we were thinking that we wouldn't be staying there forever. (Mistake number 2! Buy a house that you wouldn't mind staying in forever!) We thought maybe 5 years, 6 or 7 max. Meanwhile, the market tanked and housing prices started spiraling downward. My astute husband could foresee the market bottoming out wayyyyyyy lower than what we paid for our house, and rather than continue to lose equity and get stuck in a house and a neighborhood we don't love, we decided to cut our losses and put the house on the market and see what happens. Since we weren't desperate to sell, we felt like we could wait for a good offer. And worse case scenario, we don't accept any offers and we end up stuck, no worse for the wear. But fortunately, our patience paid off. We've stopped the bleeding! Now we plan to find a place to rent for a few years as we look for our dream house and the dream location.
Which brings me to the silver lining of losing $52,000. Hopefully, we'll be moving to an area much closer to the city, which will significantly reduce our commute. When we first looked at moving out to the suburbs where we ended up, I really struggled with how it would affect our quality of life. We were living in a cramped condo with a tiny kitchen, but it was a great area and only 8 miles from work. So what's more important to quality of life--having a shorter commute and more time at home? Or having a nice house with a big yard and lots of room in a nice area? It would be great to have both, and maybe one day we will. But after doing the long commute for one and a half years, I think I'm ready to tolerate a smaller place with not-so-great amenities in exchange for a shorter commute and more time (and less stress!). The frustrating thing is that when we first moved to the 'burbs, I swear the commute wasn't that bad. We were getting home at 5:15 or 5:30 at the latest. But traffic seems to be getting progressively worse, and now that I'm dropping off/picking up two kids from daycare, that adds time to our day, too.
Anyway, although I've had really mixed feelings about selling our house, I know now it's the right thing to do. When we first put our house on the market, our families gave us a lot of crap. Everyone kept saying that the market will go back up, we just have to ride it out, if we sell now, we'll lose money, this is the worst time to sell, yada yada yada. When it comes to all things money, though, I completely trust my husband. And his research and his instincts told him that the market is going to continue to drop, and will probably bottom out at 2001 prices, and then stay there for a long, long time. So add that to the fact that our daily grind is really wearing me down, and it just makes sense to bail. And I think the current state of the economy and the real estate market is proving Ed right. But even if he turns out to be wrong, I still trust him 100%, and want him to follow his instincts. You don't learn if you don't take risks.
So now we're looking at rentals and locations and whether we want to rent a townhouse or a single family home. Ed would like to not have to deal with yardwork for a while. But I hate the thought of not having a yard for William to play in. We MUST have a place for his sandbox! LOL. Who knows what we will find. We're keeping an open mind, that's for sure. Our closing isn't until April 20, so there's a good bit of time between now and then. And the fat lady hasn't sung yet, so there's always the chance the deal could fall through. Still, the potential for change for the better is exciting! And while I worry about William having a hard time with the move, I know he'll be fine. He just wants to be where we are and will adjust like everyone else.