My Home Is Worth $300,000 More Than What I Paid for It. Here’s Why I Still Wouldn’t Profit if I Sold It Today

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A writer could fetch a high sale price for her home, but that likely won’t leave her ahead financially. Read on to see why. 

The average U.S. home value is about $346,000, according to Zillow, up about 2% from a year prior. But in some parts of the country, home prices are up by quite a bit more, due largely to limited inventory and strong buyer demand.

Such is the case in my neck of the woods. Zillow tells me that my estimated home value is about $300,000 more than what I paid for it 14 years ago. And you’d think that would inspire me to consider a sale.

But actually, I have no plans to sell my home in the near term. For one thing, I don’t have the time and patience to deal with a move. Secondly, I refinanced my mortgage back in 2020 when rates dropped and have an extremely competitive rate on it as a result. If I were to sign a new mortgage loan today, I’d be looking at a considerably higher rate.

Plus, because housing inventory is down in my area, I’d likely struggle to find a replacement home that meets my family’s needs. So that’s another reason to stay put, despite the potential to walk away with a profit.

In fact, a big part of me thinks that if I were to sell my home today, I wouldn’t actually profit at the end of the day. Here’s why.

It’s not just about your home’s purchase price

Based on my home’s purchase price and my home’s current value, I’m looking at a $300,000 profit on paper. But when we factor in the amount of money I’ve spent to own my house over the past 14 years, I’m really not looking at a profit at all.

For one thing, property taxes in my area are really high. By my estimates, I’ve spent well over $200,000 on property taxes alone since buying my home.

And then there are repairs to consider. I’ve had to re-grade my property, replace two air conditioning systems and a water heater, and address countless smaller issues through the years, like busted faucets and sprinkler parts. So all told, I’ve easily spent a good $50,000 on home repairs since moving in.

And remember, if I were to sell my home, I’d probably need a real estate agent who would take a 5% or 6% commission on the sale of my home. Throw in real estate transfer taxes, which my state imposes when you sell a home, and my $300,000 profit is basically wiped out.

Remember that your home is not an investment

I didn’t buy my home for the purpose of making money. I bought it so my family would have a place to live in a decent neighborhood.

But many people do go into homeownership with the intent to score a profit by selling their properties down the line. Those profits are by no means guaranteed. And even if you end up in a situation like mine where your home’s value rises a lot over time, it still doesn’t mean you’re going to come out ahead financially in the event of a home sale.

So keep that in mind in the course of your home buying decision. And also, make sure you’re buying a home in the first place for the right reasons.

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