If this was you...what would you do??

16 years ago

Mommy of 5 will be a mommy of 6 in Dec. We built our 4 bedroom (2100 sq. ft) 2 story home 11 yrs. ago. We both want to build a single story larger home, but can't agree on building now or waiting a few years. We live in a subdivision of about 40 houses. Only 3 homes have been for sale in the last 3 yrs. All three listed for $300,000-340,000. One sold for $295,000 and the other for 303,000 and were on the market for a year. The other wouldn't budge on price and took it off the market. All three homes were 2600-3000 sq. ft homes. The higher priced home didn't have a finished basement either.

My DH thinks our house won't sell and even though it's paid off we'll need the money for the new build. We all know the housing market is bad right now so I don't think he's entirely wrong. Our house is on a cul-de-sac, isn't as big as the others and will be priced around $275k. We live in a small town of 1000 people and have a great school system. There are only 2 developments in town and only 3 lots left. The septic system laws changed in Ohio so anyone wanting to build in the country has to put in a different system that hasn't been used in this county yet. Plus it's more expensive than the old system.

So, I am the optomist. I think that for those who want to move up from their starter homes to something bigger our house would be perfect. They wouldn't be able to build this house again in town for the asking price and a lot of people don't want the hassle of building. Most of the homes in this area are 2000-2500 sq. ft. Although, if it would sell right away there is no way I would want to move all 8 of us to a rental (I don't even know if there is a rental in the area big enough).

So, what would you do? Go ahead and build now and hope it sells and the buyer lets us stay. Or wait a few years for the market to improve?

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Comments (6)

pompeii
16 years ago
I also live in Ohio (east of Cleveland). I don't have any wisdom for you about building or not building, but regarding the new septic system laws: the last I read in our local paper, the legislature decided to put the new septic rules on hold for awhile. So for now, I think the existing regulations are still in effect and under local jurisdiction. That probably will not impact your decision, but if you do build, it will save you money.
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sue36
16 years ago
"Our house is on a cul-de-sac, isn't as big as the others and will be priced around $275k."

If the houses that sold were 2600-3000 sf and they sold for $295-303k a year ago, why are you pricing you house so high? It is significantly smaller and the market is worse now that it was a year ago when those houses sold. Those houses that sold for $295-303 would probably sell for less now. From the info you've provided I think $275k is too high if you really want to sell.

A friend of mine with ONE child (a newborn) considered moving recently and decided against it because of the work and chaos involved. I can't imagine doing it with SIX.

Since your current house is paid for, could you buy the land for the future house and take your time planning the build? And then when you are ready you could sell your current house. If you've never built a house, it is a lot of work, more than you can imagine.
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marys1000
16 years ago
Did the 275K come from a realtor? I'd ask a realtor some specific questions about days on market, realistic pricing.
When you say there are only 3 lots left - is that where you want to build? On one of those 3 lots? Or do you still need to look for land? Find a builder (probably not hard these days LOL)
How do you think your house will show? You have 5 children and 2 adults in 2100 sq ft. I imagine you have a fair amount of stuff. Are you prepared to get a rental space and store some of that? Was the last time you painted 11 yrs ago?
If you have 5 kids, built and paid off a house in 11 years you obviously have something on the ball. But once you commit to building another house you have to be ready for your house not to sell for awhile or decrease the price. You need to figure out your bottoms on time and price before you do this.
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chisue
16 years ago
I would stay put until after your child is born and until we see where this RE market ends up -- possibly two years out. If you are *terribly* squeezed, could you buy a larger existing house for the interim and build later? That would put you in a more "equal" position -- buying anbd selling in the same market.
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mommyof5
Original Author
16 years ago
Thanks for the responses. Here are some answers to the questions:
Sue36 - The 2600-3000 sf homes that sold low were initally bought by the relocation company and then resold. In this area $300k would be considered a lot to pay for a house. If you had that much to spend most people would rather build their own plan. The exception is those who move into the area from out of town. We built this house and are much wiser than we were the 1st time so I don't worry about the hassles because I already know what I want in the new house.

Marys1000 - We would like to stay in town, but the remaining lots aren't big enough. We have no choice but to go out of town providing we can sweet talk a farmer into selling an acre ;-) We really don't have that much "stuff". We don't buy our kids everything they ask for and the clothes, toys, bikes etc... get passed down. It would be more clearing out the clutter that my DH thinks he has to keep. I'm one who likes a new look so almost all the rooms have been redone in the last 2 years...and it is only paint so that's an easy fix.

chisue - I've considered just buying a larger home, but there just aren't any for sale. The subdivision we live in is where the bigger homes are located. In this area everyone seems to be related and young college grads may move away, but end up coming back to the area to buy starter homes. Because everyone knows everyone else, it has happened in the past that someone saw in the newspaper or heard about a land deed transfer and called to inquire about buying the house. Now that would sure be nice!
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chisue
16 years ago
Ah-hah, the houses that never go up for sale, just stay "in the family". We have that here. Have third and fourth generations living in "Grandpa's house". Maybe you could set up something where you agree to sell your house to the newly graduated on condition their parents or grandparents sell you theirs!

If you move to unincorporated, will that change where your kids go to school? Will you miss any city services?
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