Your house hasn’t changed much over the years. You’ve been in it for a while and are fond of the place, but it’s no longer precisely what you want or need. Many homeowners have that one thing about their home that they wish they were different.
“My house would be ideal if it had a more open layout.”
“If I had one more bathroom, my house would be perfect.”
“I could live here forever if I just had a bigger kitchen.”
So, homeowners find themselves asking the question: “Do I put my home up for sale and move out, or stick it out and renovate?”
There’s no wrong or right answer. To answer that question, you’ll have to think about many factors, including your own point of view and the house itself. Before you put your home on the market or start knocking down walls, there are some factors that you should consider:
It’s tough to relocate if your home’s location-specific characteristics are something you love. Good neighbors, a nice school district, shopping at the same stores or emotional ties may urge you to stay in those comfortable surroundings. It’s familiar and you know what to expect in terms of bills, utilities and necessary repairs.
The first step is to determine how you’ll finance the project. You’ll have to ask yourself a few questions, including:
If your home doesn’t meet your family’s current needs, consider selling. However, if you have a nice school district, a great yard and neighbors that you enjoy being around – remodel.
If you can’t afford the home you currently have, consider downscaling instead of heading towards pricier options. The costs of buying a new home can add up quickly. Remember to keep in mind the selling and agent costs in addition to the cost of replacing old appliances, flooring. These elements can not only cost you money, but also lots of time. Before deciding to remodel, make sure your desired changes are even an option. Consider meeting with a professional home renovator. If they find that there’s no room for a new room, it’s probably time to sell.
Remodeling is a process that takes a lot of commitment in both time and energy. Home renovations can create difficult living conditions. You have to think about everything that needs to be removed or fixed, like furniture, cabinets, appliances and floors. It’s also important to determine if the electric, ductwork and plumbing need to be addressed.
Most upgrades don’t pay for themselves in a future higher sales price. If you do end up moving, you must ask yourself whether you’ll be in your new place long enough to see a return on your investment. Ask yourself the question, “How much longer can I live in my home if I renovate it?” If the answer is seven years or longer, then you should consider renovating. If your answer is under seven years, think about moving to a new location.
Over-improving your home may cause you to lose money. If the home doesn’t fit in with the rest of the neighborhood after your improvements, buyers may pass on the house in order to find one that shares the same aesthetic as other homes in the neighborhood.