[USER]

How do you decide when is time to sell your house? We bought our 1985 old house 5 years ago.

It is perfect for our family.

The problem is every year we have to replace something, to the point that is been draining our savings and preventing us from reaching FIRE.

We have good equity, and a 3% mortgage rate.

The items that are next to be replaced are BIG money (roof, AC, plumbing). So, my question is:

Do we sell, rent and wait for prices to come down?

Do we build? Do we hold ?

[Tom]

Maintenance should be part of your budget for houses and cars. Your 3% mortgage is probably worth a few hundred thousand over 30 years.

Don’t give that up too quickly.

[Leah]

You’re gonna have to do it again with another house. At least you got it at a price 5 years ago and a 3% rate.

You’re not gonna ever see that anymore.

That is what comes with home ownership.

[Melissa]

So now all the big things are done, you should be good as long as you do maintenance for at least 10 -20 years.

And you do knownthat just as much can go wrong on a new build.

Houses built in the 80’s are stronger and will last far longer than a new build will, with proper maintenance

[Jule]

Any house you buy will be in need some some kind of upgrade and maintenance.

Even new build (we have built four) will need to include upgrades that are not standard to the plans.

We just spent $400k renovating the house we purchased three years ago.

We did it because it is in a very good location and it was undervalued when we bought it due to the lack of renovations and other things.

We don’t want to move ever again because any house we buy would require for us to fix or upgrade something, and we are tired of it.

After you finish replacing the aging components of your house, you can then just enjoy it for many years to come.

That’s just part of being a homeowner.

To answer your question, we have purchased six homes in 23 years.

The reasons have been due to job relocation, closer to our child’s private school, and this last one was because we finally wanted to be in our ideal location which was not affordable at the beginning of our marriage (not close to the private school we wanted but that’s no longer relevant).

I’d say stay where you are at and make the appropriate updates and repairs.

[Sherene]

Can you elaborate on what the problems are that you’ve had to replace the last few years?

[Scott]

if you sell and buy a newer house in the same area is it going to be any cheaper than fixing the items that need done in your house?

especially figuring the rise in home prices over the last 5 years and the increase in property taxes on a newer more expensive house

[Steve]

If it’s perfect, why change it? It costs money to buy, sell, move, and you’re still going to have to fix things down the road.

I wouldn’t be in a hurry to sell off a low mortgage in a downturn market.

[Arun]

Insurance company are looking at roof conditions using satellite images and if needed physical inspection.

So, if roof conditions are not good you will need to prioritize that.

I decided to invest in my existing home as replacement are smaller and as expensive.

[Vidur]

Prices will never come down, There is so much demand and not even clost to enough supply.

Plus moving to another home does not = no replacements.

For example, my friend bought a new construction in 2016 vs me buying an already lived in home.

I have spent less on home renovation – he didnt have: gutters with drainage, landscaped backyard, or finished basement, he probably spent another 100K on top of the cost for a new construction.

I have spent less or about the same on repairs – random leaks, but he had a new construction.

[Allison]

Roofs last 15-30 years. Central air systems last 15-20 years. Flooring is … 10 years ish.

Plumbing will always need maintenance with joints and sealants etc.

nothing is permanent.

You will NEVER escape maintenance costs on home ownership, you certainly can never time major big money items, especially when you buy someone else’s unknown.

You’re better off with what you DO know, aka the house you own, and budgeting and planning accordingly.

There’s a good number of us in the FIRE community who own and of course have to do maintenance on our own homes, and yet we still are on trajectory for and many have accomplished FIRE.

I don’t think this issue is your issue. Probably need to evaluate the rest of your financial situation and see what’s really hindering your fire achievements

[Chris]

one of the reasons insurance rates are going up almost everywhere is due to all the hail damage on roofs where insurance is paying for new roofs.

I know it is a “me” vs “us” mentality, but you are already paying increased insurance due to many other folks filing those claims.

I know 4 folks who went that route and ended up getting a new high quality roof costing them between $500-$5000 out of pocket.

One even ended up potentially profiting due to the insurance payout being greater than the roof costs after some post-new roof costs recalculations.

For the HVAC, look into maybe getting geothermal.

Some states have grants and tax credits plus the federal tax credit.

When I replaced my HVAC with geothermal, it cost like $29k. After Federal and State benefits + electric company benefits, it ended up costing us $16k out of pocket.

It saved us $6k/yr in heating oil +old A/C costs and it generates about $2k/yr in Renewable Energy credits.

So it paid for itself within 3 years and now actually pays us to heat and cool our home.

[Josh]

Sounds like you spent money on things you didn’t need to do but wanted to do, and now your concerned about spending more money in the future on things that are actually needed for a home, like roof and hvac.

Unless you want to rent for the rest of your life.

Just buckle down and stay the course.

Plus if you go to sell with a crappy roof and hvac, you could run into problems and end of getting certain things fixed just to be able to close anyway, or taking a lower amount with those things factored in.

There is no magic easy button here that is also in your best Intrest..

[Matt]

Every house has expenses, that comes with the territory. 1985 is not old.

My house was built in 1955 and hasn’t given me a lick of trouble for the last 3 years because I got it all fixed up, and now I do maintenance to make sure it stays good.

Get it fixed up, then keep your gutters clean, water away from foundation, change your filters and it will treat you well for decades.

[Kathy]

All houses become money pits at some point, that’s what home ownership is.

At least you know the issues in the home you have now, and if it is “perfect for our family” then staying makes some sense.

Purchasing a new to you home (even a new build) doesn’t avoid the inevitable need for major repairs over time.

[John]

Hold. It’s general maintenance that maintains value. It happens with every house, no matter the age.

If you sell work a bad roof, bust is going to discount the roof, etc.

What’s wrong with the plumbing?

Likely you can fix for much less than you think.

[Anita]

You will end up replacing all major systems on a house if you live there long enough.

It’s just a part of home maintenance over time, same as car maintenance.

We’ve been in our 1965 house in Texas since 2005.

HVAC, roof, foundation, plumbing repipe, hot water heater, new windows, and downstairs flooring.

We’ve replaced all appliances except the cooktop and the wall ovens and that’s next with the kitchen countertops.

And likely A/C again sometime in the next couple of years since it’s 17 years old.

If you go to resell buyers expect all the major parts of the home to be in good order if paying full market value.

[Michelle]

We bought a fixer upper about 10 years ago (so we mostly knew what we were getting into), but keep in mind that all the maintenance you’re doing now is maintenance you won’t have to do again for a LONG time.

If you buy a new house, you may just start that cycle again.

In our house we’ve replace all the floors, replaced electrical, major plumbing repair, replace all appliances, gutted/renovated two bathrooms (major old leaky showers), and probably a bunch more I’m not thinking of.

But now I’m kind of relaxed because it’s all done. The roof will need replacing in about 10 years.

[Kacee]

Ah, the age old question of keeping or selling…! I am in the same boat, keep vaselating….

I think once the cost/cash out outweighs the benefits/cash in, that’s when it’s probably time to cut your losses (or prevent more losses) and sell.

That $ (or equity from the sales) can go towards something else (investment) or just save it for whatever else.

Also, if you know being a LL is not something you want to be, always dealing with issues (eg tenants, fixings, etc), maybe it’s time to sell.

I am at that point as well and I am also to re-evaluate these things even though my tenants have been great.

I am dreading the major fixes down the road when they come up.

This is how I realized I don’t want/like to be a LL.

[Justin]

If you sell, you’ll end up with either a more expensive house with a bigger payment or a smaller house for the same payment.

Only way I see you saving money is to move to a cheaper state/country or you could always explore getting a tiny home or live in an RV.

[Kristen]

I’m sure the AC and plumbing may be urgent, but I would wait on the roof if possible.

You could end up with a hail or wind insurance claim that would cover the roof.

All those things might come up in inspection requiring you to pay for them anyway.

The last property we bought we paid asking price, but we negotiated a new roof, upgraded electrical and plumbing repairs.

[Author]

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