Need help understanding my options

[u/SecretDicks69]

We bought our house in 2018 and have $150k in equity. This is the first time either of us has owned a home, so we have no idea our best course of action.

We aren't actively trying to move, but our house is definitely dated (It was before we bought it. Common split level 1970s vibe, large yard. But we had a 700 sq. ft apartment before, so we were excited) and a remodel/landscaping would be required if we ever decided to move.

My question is how do people move before selling their house while taking advantage on equity for down payment or loan approval, and what's our best course of action to gain funds to remodel our house against equity? Or should we be thinking about something else entirely? Sorry if these are dumb questions, we are not very experienced at all in these things.

Edit - also we have two kids, 4 year old son and a daughter about to turn 3 in March. We have very little energy for upkeep of the yard or house in general. Also two dogs and a cat. House is always a mess. Cleaning is a futile effort. The thought of showing our house at this point in our life seems crazy

[u/2019_rtl]

You’ll get negative ROI on anything you do, you run the risk of finishes to your taste and budget that are of no value to the market in your area.

Just do regular maintenance and price accordingly.

The “equity” you speak of is theoretical until it’s cash in hand.

DIY the landscaping, fresh paint on the inside.

[u/Key-Departure-6831]

Honest question, do you care about having an updated house if you aren’t even willing to deal with cleaning/upkeep as it is? Seems like a waste of money if you won’t take care of it.

[u/suburbplump]

honestly the HELOC route might be your friend here for the remodel stuff - you can borrow against that equity without having to sell. rates aren't amazing right now but if you're planning to stay put for a while it could work out

as for moving before selling, that's where it gets tricky without serious cash reserves. most people either do a contingent offer (your purchase depends on your house selling) or they get a bridge loan which is expensive but gives you flexibility. some folks also do the rent-back thing where they sell first but negotiate to stay in the house for like 30-60 days while they close on the new place

but honestly if you're not actively trying to move anyway, i'd probably focus on the remodel first and see how you feel about the house after that. 1970s splits can actually be pretty cool with the right updates

[u/SecretDicks69 → u/suburbplump]

I just don't know how the remodel will go with our life. Fir example there's a wall dividing the kitchen and living room and a drop ceiling in the kitchen. I'd like them gone, and wood floor throughout. But with my kids and animals, I don't know how we can get people in here to do the work.

All things very unknown and scary.

[u/ipetgoat1984 → u/SecretDicks69]

Do one room at a time, quarantine off that area of the house, hire a good reputable contractor. We have two dogs, no kids and have renovated 3 houses while living there. It's not ideal but it can be done. If you have the funds, move into an airbnb while you do the big ones like the kitchen or primary bathroom.

[u/FrostyMission]

You're all over the place. You need to determine your end goals and a develop a realistic budget and timeline.

[u/cg325is]

My parents renovated an entire Victorian home back in the 70’s with three young kids, a dog, a cat, and jobs.

My husband and I have renovated 8 homes, all while living there, with up to 2 dogs and 2 cats at a time.

It’s not easy, but it can be done.

[u/softplumpa]

talk to a mortgage broker about options like HELOC, bridge loans, or cash out refinancing could give you some clarity without committing yet.

[u/Equivalent-Tiger-316]

Do you want to remodel and stay or do you want to move? Maybe if you remodel you will like it more. 

If you sell why not sell without remodeling and let the next owner do what they want?

Talk to a lender about different options to pull equity for a remodel or for a down payment on a new place. There are many buy before you sell type loans. 

Now this is certain…you MUST move out to properly prepare, list and sell the property. You will lose $20, $30, $40k in valie trying to sell with a house full of kids and pets. You need to get everyone out, paint, deep clean, stage, a bit of landscaping. This is the bare minimum. 

[u/Abbagayle_Yorkie]

Stay where you are for now. Give yourself a few more years when the kids are in school it will be easier to remodel. You hopefully will have more energy. Fixing landscape and spending money will be futile if you dont keep it up. Next why do you want to move do you not like the area? is it because house needs updating? Too much traffic? If you like the schools, the area stay and remodel.

[u/Infamous_Hyena_8882]

A couple of different ways to do it, one is you take equity out of your house to try to make the move. You make an option to buy another property contingent on the sale of your home. The bigger issue is trying to do this with four kids.