Not that we have a choice at the moment.
If you’ve been following along, you’ll remember that we listed our house for sale back in October. We had a whole list of reasons for wanted to sell:
#1 Our Life Plan had changed. We had a child sooner than we originally planned and switched to a single income. I originally planned to go back to work part time, but I just couldn’t when the time came. A very affordable house became a nearly unaffordable house as quick as you can say “baby!”
#2 Our city raised its taxes to over ten percent, which is really extreme in our area. Most surrounding cities have rates between 6 and 8 percent. (Property taxes are based on 33.3% of the property value.) The increase in taxes made our house even more unaffordable. 46% of our income, to be exact.
#3 Having a baby made living an hour away from my parents so much harder. I got the itch to move farther north so visits with Grandma and Grandpa could be more frequent and not cost $12-15 in gas every time.
We signed a six month contract with the Realtor but we ended up allowing the listing to expire last month due to the fact that the fair market value for our house had dropped to around $98,000 according to Zillow.

What is most painful about this is the fact that we paid $147,900 for it in 2007. OUCH! We had quite a few showings and not one offer. We had to list it for more than we bought it for to cover Realtor, closing and moving costs, so it’s not like I can blame people for not wanting to spend so much on it when there were homes listed for the low 120s across the street. I guess I was just hoping for a miracle. I was hoping some person with plenty of money to burn would come along and realize that our house was the only one they could possibly buy, whatever the cost. Yeah right…
Plan B
Our new plan is to sit on the house a little longer and hope for the best in terms of the housing market around here. We are working really hard to make things work financially in the mean time. It’s hard spending half of your income on your house, though. We’ve been drastically cutting expenses, but the main thing that needs to change is our income. Eric has been looking around, but you know how the market is right now. He has started to look in different cities. If Eric does end up getting a new job farther north, he’ll just have to commute until things turn around.
Our Realtor is not so optimistic. He thinks we should attempt a short sale because he does not expect housing prices to rise much in our neighborhood any time soon, if ever. He blames the location. Okay, even if we were to sell it for less than we bought it, I’d rather wait and hammer down the principle. Short sales are terrible for your credit! Furthermore, I really have a hard time believing the housing prices won’t get back up to the 150s in the next five years. I’m no genius when it comes to real estate, but I do know how much things have fluctuated in the last decade. We didn’t buy our house at its peak value, which was in the 190s. Is there really no chance of making a teenie profit or at least breaking even?
Which brings me to…
Plan C
What if we didn’t move? Ever? I mean, what if we just decided to stay indefinitely? I know our income will increase over the years as Eric gains experience and moves up in his career. Our taxes will go down for the simple fact that our home value has decreased. For those reasons, I know the money part will get better. I can adjust to life a little farther from my family than I’d like. Lots of people live much farther from their grandparents.
I have a love/hate relationship with my house. I love the way it looks and feels – it’s home. I do wish it was a little bit bigger. I wish it had more bedrooms for future children, but then again we could always finish the basement in the future and add a bedroom. I could really use more cabinets and I would love to remodel the dining room to make it feel more separate from the kitchen. I would love to upgrade materials someday: carpet, countertops, etc. I would die for crown molding and a real railing on the stair case instead of the drywall banister. There are tons of little projects I would love to do over the next few decades, but I’ll only entertain those dreams if I can envision us staying put. Why put all that work into a house you’re going to leave anyway?
I wish I knew where we were going to be in ten years. Can I let myself get comfortable in this house and enjoy making little improvements, or should I live as though we may put it back on the market in a few years (no redecorating)? *Sigh* Everything feels so up in the air right now. Not knowing makes this house feel less homey. I don’t know if I can relax or not. I don’t know if we’ll stay so I feel a little unsettled. I really don’t want to go with Plan C because I really want to live closer to my parents, but I also love the idea of never having to move again and just making this house everything I always wanted.
Plan D
D is for “dream.” My dream is that someone would buy our house from us right now – an investment risk of sorts (they’d be banking that the value would increase to the point where they could sell it for profit when the market it ripe) – allowing us to move into a more economical, temporary place, most likely a rental, while we work on Our Total Money Makeover. We would pay off all our debt, build our emergency fund, and then save up enough cash to buy our next house with no mortgage! We’d build – make it fit our family like a glove. We would be closer to our families and life would center on our family and our faith, not the stress of stretching $1 to cover $5 in expenses. Ick! Do you think that could ever happen? Probably not. Maybe Barack Obama will buy my house. Hehe.