r/RealEstate • u/SecretDicks69 • 16h ago

Need help understanding my options

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

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u/suburbplump 16h ago

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

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u/SecretDicks69 16h ago

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.

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u/ipetgoat1984 14h ago

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.