SEARCH BLOG: ECONOMY
After four years, we decided to try selling our house again. Based on sales of similar homes [which have been few], the value of our home has dropped by one-third in four years. So, why sell?
- First, this is Michigan. Michigan led the nation into recession and it will trail the nation out of this economic morass. [image source]
- Second, a 33% decline requires a 50% increase to get to break-even. The time frame we are talking about is probably a decade or more. Paying property taxes alone would wipe out any benefit from the recovered home value since I have a second property which does not qualify for a homestead exemption... and the property taxes on the lake property are equal to our primary home's.
- Third, our children moved out years ago and two now live in a different part of the area... near our other property.
- Fourth, our other property includes a small cottage that is quite old and in need of extensive renovation.
This means some major changes for us. Obvious, a year of distraction.
The first part, selling the present home, may be accomplished much more quickly than we anticipated. We have two offers in two weeks and it looks like we may be closing within a month. The buyer is getting a great bargain and we are getting rid of the economic burden of two homes.
Then the summer and fall will be consumed with the building process. We chose a builder recommended by Glenn Haege. They may be a little more expensive than some, but we found from the very beginning that their vision of the rebuild was almost perfectly aligned with ours... and they offered their ideas first.
This means that we will be giving up some things. I've already let my golf league know that I won't be participating anymore. My wife will be giving up her participation in the local community chorus. The summer at the lake will be pretty much shot this year.
It also means taking on moving twice: the first move out of our home into an apartment during the building period and the second move from the apartment to our new home... a considerable nuisance, but unavoidable.
It also means somewhat erratic posting to my blogs... not sure if that is bad or good. But it should also provide some interesting pieces for posting.
Still, the long-term benefits outweigh the short-term drawbacks. We'll eliminate several thousand miles of annual driving back and forth between the two places. One of our grandsons will be right across the lake. Other relatives live in that immediate area... and, yes, that is a positive.
Of course, like anything else in life, it's not over until the money changes hands.