So you purchased or built your dream home a few years ago, but maybe your circumstances have changed since then. Kids getting bigger? Maybe your family has grown in numbers? Has your home lost the charm it once had? Many homeowners find themselves in the position where the home they own no longer matches their needs or desires. The question then becomes, should you put your home up for sale or go through the process of a remodel? Selecting between these two options can be very difficult, so here’s a few things to think about when deciding on which path you may choose to take.
Is your home providing you with the space you need?
Ask yourself this question. It’s recommended that you make a list of the pros and cons of your home. This will help you to figure out what things you like about your home and what you maybe would like to change. Does the home still continue to serve its purpose or have you and your family outgrown the space you have? Is the location of the house now a hindrance to your family members? These are just a few of the many questions that need to be taken into consideration.
If the home is no longer serving the purpose it once did, then selling it is likely the best option for you. Adding additional space can incur costly construction budgets and depending on the size of the renovations, it can inconvenience you and your family for a few weeks. You may even have to leave the property and stay in another location while the work is being completed. Also, many times the amount spent to renovate isn’t realized in the total value of your home.
What is the current condition of your home? What is it worth?
Something that can’t be overlooked and certainly needs to be factored into the decision on whether to remodel or relocate is what the current market value of your home is and what each remodeling project will cost. Does it make sense to invest a large amount of money into your home if it isn’t going to add substantial value to it? What are the houses in your community currently selling for? If the market values in your neighborhood are relatively low, then investing a large amount of money into renovations may not be a great idea. If the money invested can’t raise the value of your home because comparable market value for homes around in your neighborhood are relatively low, then it does not make sense financially.
A smarter way to go about deciding whether or not to remodel is to have a real estate agent or home appraiser put a current market value on your property and add to that the amount that you want to invest. The compare that total amount with the current market values of comparable homes in your neighborhood. What have comparable homes sold for in the past year? This should give you a great of whether or not investing in a remodel is worth it or is just selling your home and finding something that better suits your needs the best option. There really isn’t any reason to spend $100,000 on a huge remodel that’s not going to reflect in the homes value should you decide to sell the home down the road.
3 Reasons to consider moving.
1. If you have any intentions of moving in the near future, say the next 24-36 months, then completing a costly remodel probably isn’t a great idea. Chances are good that when you eventually sell you won’t see the money invested realized in the sale price of your home.
2. Another reason to relocate can be the amount of remodeling projects that you want to undertake. It usually makes more sense to sell the current home and find a house that better accommodates your needs. Take time to find the location that you want to be in and what kind of aspects you want your new home to have. Finding a home that already meets the standards that you and your family are looking for will save you time and money that a large remodeling job may require.
3. If the location that you are in isn’t meeting the needs of you and your family, then a move to a different location may be necessary. Many components are involved in this decision. A new job, a better school district, too long of a commute to work or just maybe a change of scenery are all very common reasons to make a move plausible.
3 Reasons to consider a remodel.
1. If you are looking for a fresh, new look for your home then a remodel may be what you need. If you plan to stay put and reside in your home for an extended period of time, then you have the advantage of choosing which remodel you want to do when you choose to do it. Remodels become much easier to undertake when your timeframe for staying in your home is long-term. They are easier to finance and if done over a longer time period can slowly add value to your home.
2. In a slower and less valuable real estate market, building material costs usually have a tendency to decline as well. This can be used to your advantage because budgets for projects will reflect the current costs for materials. By shopping smart and comparing budget bids from several remodeling companies, there’s a great chance your project can be completed for a cheaper price, adding more value to your home.
3. Another great reason to engage in a remodel in your home is if you are really in need of an upgrade. If you have a home that was built in the 60’s or 70’s, it may be in need of a few remodels to bring it up to the 21st century. It could be an old, moldy bathroom, some shag carpeting that is an eyesore or maybe the basement needs an upgrade to match the rest of the house. If you plan on staying in the home for an extended period of time and have no intentions of selling it anytime soon, then a remodel is most likely the best option.
You have options.
So as you can see, there are many factors involved in deciding on what direction you may want to go in when it comes to your home. Deciding to undertake a remodel can sometimes be the right move and will work out financially in the long run. It could be that moving makes the most sense for you, your family and financially may just be the most logical thing to do. The cool part is that you have options and an almost infinite amount of resources to help make the decision easier.
Don’t forget, your home is most likely going to be the biggest investment that you will make in your life. It’s important to look at both options, to remodel or relocate, and compare the risks and rewards for each based on the total costs. When the costs are compared then it becomes much easier to decide which route to take. To remodel or sell, a difficult question made easier by organization and planning.