Should I sell my home, or remodel and stay? I have people ask me this question all the time.
It comes down to what is best for you and your family. There are times that selling and moving is the best answer, especially if you have outgrown your home, you want to downsize, or you just want something new that suits your needs better.
Doing a cost analysis is the first step. How much will the renovation cost compared to what you can sell your home for and buy a new home. There are times that a fresh coat of paint, new carpet and replacing doors and fixtures will bring the value of your home up enough for you to sell and be able to afford that new home you have had your eye on. Here are some things to consider when making the decision to renovate:
1. You don’t have a lot of equity in your home
2. You don’t want to leave the neighborhood
3. The layout is perfect for your needs
4. You just don’t want to move
Keep in mind that when you do a remodel, don’t go overboard. Don’t create a palace that you will never be able to recoup the money that you put into it, when you do want to sell. Enjoy the renovation, but don’t expect that you will get every penny back out of it, along with a profit. I have had people tell me that they put 50,000 into their home and they want to add that amount to the price of the home. It doesn’t work that way!
To help determine which would be better from a value stand point. Have a professional real estate agent come to your home and give you a market analysis. This is free and a good agent will be happy to help you. This way you will know what your home is worth and the value of the homes in your area. How much updates will add to the value and exactly what kind. Not every update will add value and some will actually lower the value of your home. Here is an example; You need and extra room, so you decide to convert your garage. For you it is no big deal, but for a potential buyer, that wants a garage it is. You really haven’t added anything, in reality you removed a feature of the home.
Ok, you’ve made your decision and you’re going to renovate!
First decide if you are going to “do it yourself” or hire a professional. There are some jobs better left to the people that are experienced in that field. Replacing flooring or remodeling a kitchen, or bathroom can be daunting unless you really know what you are doing. There is nothing worse than being in the middle of a job and realizing you are in over your head, and now you need to hire someone. That could cost you a lot more money in the end. Not to mention the stress.
Consider some logistics of the remodel. Can you remain in your home while it is being done. Tearing up a kitchen will mean not being able to prepare meals, or maybe not even being able to enter that room. How will the remodel effect other family members.
Do you have small children, or animals that may be displaced while the remodel happens. How long will it take to complete. If you are doing it yourself and you only have the weekends to work on the project, it is going to take a lot longer, to complete.
Here are some tips.
1. Write down the pros and the cons
2. Have a plan, and write it down
3. Plan the budget, what may seem cheaper for you to do it may really end up costing you more in the end.
4. Consult with an expert and get an estimate.
If you decide to have a professional do the work. Get estimates from several people. Make sure who ever you choose is reputable, insured and has references ( you don’t want “fly by the seat of your pants”, that will start the job and never show up again)
The finished results can be amazing and you will enjoy it for many years.
Or it may be time to move on and buy another amazing home. Either way consider all the options and go into it with your eyes open and have all the information that you need to make a wise choice.