Housing price increase, what do?

Let's look at it this way - if you sell the house at 175k and have to pay 7% commission, you're paying 12,250 bucks. That brings it down to 162750. If you end up listing the house, you're gonna have to deal with people constantly wanting to walk through your house to look at it, and you'll eventually get someone that makes an offer for what you ask. Then, chances are, they're gonna wanna ask for concessions after the inspection to do various bullshit (let's say they want you to drop price 4k so that they can afford to repaint the interior and get a new garage door or something equally boring). If that happens, you can either say "no" and gamble on them walking away, or say "yes" and grin and bear it. Suddenly that 162750 drops to 158750.

And if you had to pay closing fees when you bought the house, let's say 2k, you'll only have a 1750 profit from all this crap, and you'll have to go through the Spanish Inquisition of getting a mortgage while selling a house (in the same exact market, so you'll only be able to afford something equally as nice as what you're selling), and you'll spend hours upon hours dealing with paperwork and moving and other arduous bullshit, and you'll be moving into a house that is just the same as yours.

Problem is, you might end up having to pay closing fees again, and suddenly you're losing money to put yourself through all this hell.

The profit you are getting is seriously so razor-thin that it's a coin flip that you'll even break even through all of this, and you'll have to buy another house. You won't be able to afford more house out of this, all the other houses are rising too.

If you decide not to sell it and get lazy, chances are, your house will still appreciate, and the equity you keep pumping into it month after month through your mortgage will help to offset any costs incurred when you bought it 20 months ago, until one day you reach the point that you have so much equity into the house and it's appreciated so much that you won't need to worry about losing money on that 5 figure commission you'll see when you sell. Because right now, that 5 figure commission is pretty scary and puts this right into razor-thin "it isn't even worth the trouble" territory.

/r/personalfinance Thread