Home Advice

My sister had a fairly small eat in kitchen which was in the back of the house and a large yard. She then put an addition on the back her house adding a breakfast room. This got her kitchen table out of the kitchen so she could then add another wall of cabinets. Her kitchen is now a really nice size and her breakfast room with the kitchen table is very large. The addition then continued across the back of the house expanding the size of her family room ( which used to also be the back of the house.) She added a 2 sided fireplace which divides the family room from the new sun room. On top of the first floor addition and existing garage and family room she added a master bedroom, bath, laundry room and study.

I live in 1000 square foot home that was built in the 60's for a family with 6 children. There are times when I would like a bigger home and more storage, but those things are not my priorities. Our location is ideal and our home is paid for. I made it through the hard years when the kids were babies and had all sorts of big accessories (high chairs, exersaucers, baby swing, jolly jumper, riding toys etc). The older they get the smaller their toys get and I find I am getting my space back. I would rather spend my money on the things we do outside of the house than getting a bigger mortgage!

Can you add on to the current house? Since your yard is so huge, maybe there is a way to add a couple of rooms on the back. You could put in an extra bedroom and a larger family room for entertaining.

I think the current house sounds better than moving. The mortgage and low property taxes are incredible - you won't come even remotely close to getting that again.

If you and your husband are handy, or if you have some handy friends, you can probably do a lot of the remodeling yourself. Flooring and baseboards can be time consuming, but not that difficult and you'll save a lot on labor costs. You can go to Ikea and get their kitchen cabinets and counters for a good price too. That is what we did in our old house.

You can get new windows for the price you'd pay in one or two years worth of higher property taxes and insurance in a new home.

ETA: I just skimmed through the other replies and have to disagree with some of the posters. If you decide to sell your house, do not remodel beforehand. Bathroom and kitchen remodels almost never raise the value as much as what you paid... a $20,000 kitchen remodel might raise your selling price by $5-10,000. You should fix things that are broken and, if needed, put fresh paint in rooms where the walls are particularly scuffed up. Other than that, keep the asking price lower and let the new owners remodel the home the way they want.

First good advice, no, you do not have 75,000 in equity. You have the difference between what someone pays you and your mortgage balance at the time. No way you will get assessed value with that many updates needed. Think about it, what you don't like, why would someone else like it?

Not trying to be a downer, just bring you back to reality. If you have the money update first because if it doesn't show well it isn't going to sell.

We just bought a house. Let me tell you, I don't know exactly what the average home price is where you live, but let's just say it's $450K+ for one of these 3,000 SF houses that are brand-new. Your mortgage is going to be above $3K/month (including insurance, property taxes, PMI, etc - really, look into all of that). Also, as you know, new housing developments typically have tiny lots, so you will lose that big back yard (unless you can buy 2 lots side by side, but then you're looking at an additional $150K or more onto the cost of your mortgage).

In general, new housing developments are almost never worth the money. Truly. The price per square foot is outrageous when compared to the cost of buying a slightly older home and just remodeling it to your taste.

So my suggestion would be, yes, go ahead and look for a new place, but no, don't buy brand-new. Buy something that's 5-10 years old with a layout that works for you, and remodel it to suit your taste. Generally a little paint and maybe some different flooring, and you can really make it your own for a fraction of the price of building a new house. Houses that are in this age range will be just as energy-efficient. If you're not in a big hurry, take your time, look around, and you can probably find a place with a larger yard and a better layout that will work for you.

Another thought - you can probably keep your existing house and rent it out for a profit. If you need that equity in order to put a down payment on a new house, maybe look into taking a 2nd mortgage out on the house in order to do that. If you have a 15 year mortgage with, let's say, 12 years to pay on it, you can rent it out, the tenant is covering the cost of the mortgage for you, and in 12 years, you own the house free and clear, and you'll have residual income every month. Just a thought!

Stay in your current home. Not having your own room isn't the end of the world.

Consider meeting with an architect and/or an interior designer. They would be two great professionals to help you see a vision for the interior of this home you may not have considered.

I would stay in this home because having money in your pocket rather than giving it to a mortgage company is just what I would do. I would figure out how to transform those closets so they are more functional. I would trim down the amount of clothing everybody owns. To be honest most of us only wear our favorite pieces which often is only half of all the clothes we own.

As far as books and toys go, how many books and toys do your kids really play with? Time for them to purge and pair it down. There are plenty of kids that want to have your slightly used toys. Donating them to Good Will would be a good show of good will. The space gained priceless. When new things come in old things must go out.

Before making a decision to move I would certainly seek out a professional to perhaps make the space I have better suited to our families use.

Another consideration - if you do stay and remodel, that will trigger a reassessment, which will probably make a significant difference in your property taxes.

Sorry if that clouds the issue further >.<

Bigger house, bigger expenses. If your house needs work. Who do you think will buy it. You would have to drop the price. 2200 sq. feet is a great size house. We raised four kids in 2200 sq. ft. And always had plenty of room. Why do kids need their own rooms? Entertaining. We have had parties of 100 plus people without a problem. Crowded sure but who cares. We always had a blast. I did. Or see one compelling g reason for you to move. Do you know what house poor means? That is where you would be headed.

What feels big or small depends on you and your expectations. We live in a 900sq ft co-op apartment. We host parties with 24+ people all the time and don't feel cramped. Mind you, we live in NYC, where people are used to being all on top of each other all the time. Hubs and I are minimalists by nature, and DS (3) is tidy too.

I thought we had de-cluttered to the max too, then we got hit with a bed bug scare. All of our clothing and bedding had to be sealed away for 6+ weeks. Guess what, we each made do with 4 t shirts, 2 sweaters, 2 pairs of pants for the 6+ weeks. Not eager to live so sparely again, but it can be done. Gave away over 1/2 of what we had sealed away, because I came to realize, if I didn't really miss it when it wasn't available, I don't really need it.

I like Kimberly F's answer of bringing in professionals to help you re-think your space. It will be cheaper in the long run than the new home. Add to the list, a re-organizer (they exist).

Best,
F. B.

I agree about having an outside person take a look and give an opinion/bid! With such a large yard, would an addition be a better investment? Can you open up walls (between shared living spaces) to open it up? Do you have an office or other room that could be converted to a bedroom (even a garage)?

If you truly know that the cost of this home, under a "regular" mortgage would be so much more, maybe you should consider spending that money to make the improvements (*prioritize!*). Then, after a few years, you will have build up MORE equity AND the house will have the added features/improvements and you can reconsider selling...
To me, the location, neighborhood, and nearby amenities are so much more important than the aesthetics of a home... fixtures, floors, and walls can be changed!

If it were me I'd stay in that home and start doing remodels. Maybe add on to the living room. My uncle did this....they opened up their kitchen and added on a huge section on their living room with all these gorgeous windows. I'd slowly replace windows.That's just me though. I like a house to be a bit smaller. I hate feeling "house poor" where your mortgage is so huge and you have no spending money. I hate the financial stress that comes with a big house. Also - I HATE how much more cleaning there is to do. Your house sounds like it is in a great location and has a great yard. Why not start fixing it up to try to make it more to your liking? I guess if your finances can handle a much more expensive house then I would consider it. But saving and having spending money for activities and travel is more important I think!

I would get some bids from contractors, talk to an appraiser and look at new homes and figure out what your monthly bills would be and then decide. Also find out if the upgrades to your home would fit the comps in the neighborhood. You don't want to over-do it. Your home is only worth what people are willing to pay.

You don't say how many bedrooms and bathrooms. You just state family of 5 in a 2200 sq ft home. We could assume that it's a 3 bedroom as you state that 2 kids share a bedroom....but I don't want to assume.

if you can remodel and expand - why not? Get a home equity loan and hire an architect to see what can be done and how much it would cost. If you can't afford an architect, go to Best Buy or some other place and purchase a 3D modeler so you can put load it on your computer and see what you can do.

If the costs are unreasonable, fix what you can to make the home sellable and move.

Windows for our home just cost us $15K.
New siding and gutters - another 15K.

Either way - you are going to have to upgrade your home to get it sold. And your current mortgage is great...not many people have a mortgage payment that low...i know people who are paying $1800 to rent...that's an option as well - renting it out.

If closets are filled to the brim - do you have the new closet systems installed in the closets to help keep them organized? If you are living as minimalists...I don't see how they could be brimming at the seams...

Good luck!

If you don't have to move for a long time for reasons other than not liking this house, I would remodel.

Bathroom and kitchen remodels give you the best bang for your buck. You may not get 100% of what you paid back when you do sell, but a realtor will tell you that you'll get a large portion of it.

There are people who would walk into your house, see that kitchen, and walk right out. You might not want to live through a remodel, but they don't want to either.

You can get a tax break for replacing the drafty windows in your home. Same thing for a new A/C. I bought a new furnace/airconditioning system for my house (one up and one down) and the cost of my heating and cooling went way down. I'm so glad that I did it.

I will tell you that if you do decide to sell the house, you'll have to put some work into it. Otherwise, it will just sit on the market or you'll get a very low price for it. People will also ask to see the records of your heating and cooling bills. They won't like how much you pay per month and you may find that once they've done an inspection, that they tell you that they want a deep discount for replacing windows and the A/C. You do have to pay a lot for a turn-key place. Only you know if you can afford that or not. Living in California is an expensive proposition. Having that break on taxes and such a low monthly mortgage is very attractive.

Whatever you do, make sure you have a VERY GOOD contractor do the work in your house. I'd get a designer to draw up the plans so that there are no surprises.

Oh, and yes, a bigger house means more work and cleaning. I downsized from over 4000 square feet the last time I moved and am SO happy...

we had almost the exact same dilemma. we could have refurbished- even enlarged- our little house, and had more money for vacations and toys. or we could move to a bigger place.
our choice was to move. i'm SO grateful to my men, because my dream was somewhere i could keep my horse, and i got it. i love my little farm with every fiber of my being. but it was way more my dream than theirs, yet they came along with me. and they love this place too.
the problem is that it's such a personal decision. it's hard for others to advise you as to what will work for YOU. your pros are terrific, but your cons are pretty significant.
maybe do some exploratory house-hunting, just to get a feel for what's on the market in your price range?
khairete
S.

My first feeling is to stay, although a lot of decisions would have to be made re: can you get a permit to renovate and enlarge the house, adding another bedroom, expand your living room, add an extra small room for storage? Do you have a garage? Do you have a contractor/friend who can help keep fees minimal, where you can help him in some other way? You're in a good place, low mortgage, TAXES GRANDFATHERED in, LARGE BACK YARD (thus expanding the house). Do your kids have friends in the neighborhood? Is it a good school district? Have you asked your kids what they want? I ask that as it's so very important. When we moved, we didn't think to ask our kids, and now that they're older, they NOW let me know they never wanted to move. So... it's a family decision. Yes, a new house would be great and beautiful, but so much more money would be spent on it rather than family time and the stress the new payments would be. Also, in this economy, what if someone got laid off from work? What about savings, aka college educations, vacations, etc. Also, a new house gets old quickly with 3 kids! I feel it's a family decision, yes, the kids are old enough to help decide... some of the best ideas come from, what's the saying, out of the mouth of babes? Something like that! Just my opinion... it's a huge choice you've got to make! Also, re: the remodeling: kitchen, bathrooms, etc., there's a lot of new materials as laminated floors, less expensive countertops, carpeting, energy efficient windows (thus the electricity bills). Also, is your house one or two stories? Do you have an attic? Oh, decisions, decisions, decisions! Good luck and please let us know what your family decides! Warmly, A.

I guess you just have to weigh your options according to what is most important to you! How much money can be saved energy wise in a new home, especially considering you'd like to move to a larger place? Maybe it would work out to be about the same, maybe you'd save a little if the place had better windows and less drafts? How much more equity could you collect really if you did the remodeling you're talking about? Would that be worth it upon trying to sell it? Would you be able to make 75k only WITH the remodel or right now if you moved and possibly more if you made those changes? Would you break even if you had to fork out that money for the work? Dunno if any that helps...hopefully :)

I really hate moving. Is it possible someone can consult with you and help you make the most of your space? I see the pros as huge and would do everything I could to make it work. Our home is 1700 sqft. 3 bedrooms 2.5 baths a formal live, formal dining, family room kitchen and nook. I hate formal living/dining and see them as a waste of space. Fortunately the dining room was in a place that could be made into an office (which prior owner had done) and my craft room was born. Formal living/family are next to each other but divided by a wall that has a huge window. ( I think its load bearing) The formal living is our family room but the family room is where we gather for parties. Our home does not offer much storage so we HAVE to be creative. Our pantry is about a foot wide 2 feet deep and 7 feet tall. We are adding in additional cupboards and counter top adjacent to the pantry along the nook to be a secondary food storage area. I do have a nice walk in closet and hubs added extra shelves for purses and shoes. We need to add shelves in the master commode area for bathroom storage though. we had to add a cupboard in the powder room as it was a pedistal sink and a toilet. Seriously where do you put spare TP? So try to look at yhour home from a different perspective to see what you can do with the areas in your home to make it work. If you cant then find a suitable replacement.

Lifestyle is important. If you can't live the life you want in your house, then upsize. If you can, don't. We decided we needed more room. We have a 1200 sq ft ranch, with a finished basement, so we have about your living space. The third kid put me over the edge. My in-laws come to visit for long periods of time. Our guest room is now an office. I can't declutter anymore either. We are maxed out. We are willing to reduce activities and things for more space and breathing room. It's about priorities. As I see it, we will grow into our new mortgage, meanwhile, I have a bigger house so I can escape some of the noise! We will be doubling our mortgage, btw. I'm nervous, but it's time. We were only suppose to be here for 5 years! It's been 9.

Here's a question: can you sell for a decent price without remodeling?

I'd start shopping and see what is out there. You can put a contingency on the contract that your home must sell before the closing on the new house, my sister did that. I told her not to because I truly thought her house would not sell but it sold in 2 weeks...it really did! Only 4-5 showings.

If you find a home with less repairs and better windows alone you're going to come out ahead in the long run.

You may also have culture shock because your home is not going to sell for a great amount. It's still a buyers market. If you don't get that $75K you think you'd get then you don't have as much to pay down on the new.

So you have some discussions to do with a Realtor. Look at tons of houses. If you find one you love then go for it.

With the house payment you have on your current home could you keep it and rent it? Advertise it for $1800 per month but encourage them to rent for $1500 per month if they do some repairs, remodeling, on the home for you. Simple painting, you buy the supplies and they do the work, IF you can get someone in there that will do the upgrades and is completely worthy to do them.

You could also give them an option to buy the house in 1 year with the rent reduced if they'll do the remodel/repairs you want. Within reason let them have say in it too if they are wanting to buy it.

The point is prices may go up in the next year and you could make more money if you hang on to the property a little longer.

make it work where you're at.

When I reread you pros and cons list, I see a lot of "Plus" things on the pros list. You like your neighborhood and you have a low mortgage. We have been watching a lot of the remodel shows like Love It or List it and they have wonderful ideas for making your current home more livable. I would find a few home remodelers that might provide you a draft floor plan and then pick the one you like the best and fits your budget. Or give that show a call or one of the other one and see if they want to take you on as a project. You need some good ideas from someone that is gifted in being able to look at space and make a plan. If you were going to sell your house, you would probably have to update the kitchen and the windows anyway. Good luck