You asked for some advice, so here’s my attempt at some wisdom:
It seems like you are being more objective than most folks these days. The thing that you have to accept is that the decline in value and cash put into upgrades are all a sunk cost. This money is gone and you have to make your decisions based upon what the market price is now. Your investment lost $100K – there is no changing that.
Since you are leaving the house and it will no longer be your home, don’t be sentimental about it. Now the house is just an asset with a market value, nothing more. Your decision should be based upon objective facts and financial goals, such as risk levels, liquidity needs, tax consequences, diversification, etc. Don’t just hold on to it because you like it.
Your $100K loss over 6 years averages to about $17K per year. I’m sure this stings, but it sounds like you have a good career, so it isn’t much in the long run.
