In 2004, we bought our house for $916,000, put about $50,000 of improvements into it (e.g. finished basement, paved driveway, landscaping). In the last five years we have added a new baby to the mix and racked up $40,000 in credit card bills. Our current plan of attack is to sell the house for $789,000 (what it is worth now), pay off all of our debt, and buy a $500,000 house. This move will make us debt free and give us an extra $1,600 extra a month.
We are in the DC/Baltimore/Annapolis area in a highly sought after neighborhood. We have already had two offers (for 705k and 770k) and our home has been on the market for 41 days. We do have a bottom line which has not yet been met.
Is this truly the best financial move for us considering the huge loss in equity of our current house? Should we simply weather the storm with our huge mortgage and wait until the housing market stabilizes and home value increases before we move?
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The AnswerWe Want to Sell Our House, Pay Off Our Debt and Start Over. - Julie by Steve Rhode