Know when to renovate the home or sell
When you bought your home, it perfectly suited your family’s needs. Now, there may be size issues, layout problems, or a lacking location have made your home less than ideal. When a home no longer meets many needs, homeowners are left asking if they should renovate or sell.
The decision to renovate their current home or to sell it and move is dependent on a number of different factors, including return on investment from renovations, whether or not you can afford a replacement home, and emotional attachment to a house or neighborhood. The following seven questions can help guide you as you decide to sell or renovate!
- How long have you been in your home?
Real estate experts recommend staying in a home for three to five years; this helps recoup costs such as real estate agent commissions and moving expenses. This also gives your current home time to increase in value.
- Do you understand the realities of renovations?
Renovations can be a headache; from dust that permeates every corner of your home to weeks spent without appliances, homeowners should understand the realities of renovations before committing to it. Begin by budgeting 20% more than estimated costs to allow for unexpected expenses. Likewise, make alternative plans in advance for time when plumbing or cooking spaces may be impacted; if possible, plan on staying with friends or in a hotel to avoid the hassle of living in a construction zone.
- What is the return on investment for your renovations?
While high end renovations can improve the value of your home, it is possible to over-improve a property. The value of a home is reflective of the surrounding neighborhood; be careful not to renovate so extensively that you cannot recoup the cost of renovations when the home is sold.
- Do you love your location?
There is a reason people say real estate is all about location, location, location! If you love your current area or neighborhood, renovating may be the best solution. Likewise, if your neighborhood is lacking or the commute to work or school is too much, moving may be the best solution.
- How much is your current home worth?
If your home has appreciated in value, selling now may help you maximize your initial investment. Consider speaking with a real estate professional who is an expert in your neighborhood to see how homes in your area are selling.
- Have you outgrown your space?
Need another bedroom? Can’t live without a second bathroom? Living room too cramped? Many families find that they have outgrown their living spaces – and that it can’t be corrected with renovations. When this occurs, moving may be the best solution.
- Would you be happy with a facelift?
If you like your neighbors and have enough space but want a home with more modern features, renovations may be the best solution. Start small, such as replacing a kitchen backsplash or installing new faucets in a bathroom. Oftentimes, simply reorganizing and redoing a space can make a home feel brand new again.