Moving or Remodeling, When is the Right Time?
When your house no longer serves your needs, you have two options: to move or remodel. Both involve critical decisions and huge changes. But which one is the best investment when it comes to utilizing your housing dollars? Well, to answer this, you will have to consider the value of your current home, compare it with the cost of the neighboring houses and finally the cost of moving out. Here are a few tips to help you make a decision.
What Are Your Remodeling Costs?
This step requires attention and visualization. Once you have a renovation vision, request for a quotation from your home improvement contractor for the remodeling costs. If you plan to do it yourself, put down all the costs of items you will require for the entire process. Now that you know the value of your home as per the current economic conditions and market values, add the remodeling costs to the valuation cost. What are the figures? Is the total value of the house more than 10% the average price of buying a home in your estate? If yes, you are over improving, and your house will probably not sell for the same amount you put into remodeling.
What do we mean? For instance, the average cost of a house in your neighborhood goes for $100,000 and the estimated valuation of your house after remodeling falls at $200,000, remodeling is not the right move. You will have a hard time selling since no one wants to buy an expensive home, in an inexpensive neighborhood, if they can spend less for a similar home.
Do You Love Your Neighborhood?
Do your kids love the school they attend? Are you having a hard time finding a bigger, better and affordable home? Maybe the new area you’re looking to move to is so far away that the distance seems daunting without help. There’s a reason why you have been hesitant about moving out of your house. If you genuinely have an attachment to your house, the surrounding and you can handle the little disturbances you are experiencing, then you might want to remodel your home and let it serve you a bit longer.
Remodel Or Move: What Sounds Affordable?
Creating reasonable budgets is a critical step in deciding whether to look for another home or renovate the current one. If your total budget stands at $50,000 for either remodeling or moving out, try and determine which option will not ruin your budget. Most homeowners undertake renovation projects that would cost them a specific amount but end up changing their wishes or unexpected problems arise. In the end, the budget blows up.
Are You Patient?
Both remodeling and looking for a new home could take a considerable amount of time. However, renovations could take longer, especially if you want to undertake serious projects that need long-term commitments. Improvements would require you to buy the best materials for the kitchen countertops, cabinets, floor and purchasing appliances. You would also have to hire a contractor to help you with the transition. If you are patient enough to wait for months to get your home customized to your desire, then renovation might be your best bet.
Now that you know how to decide between moving and remodeling, you are likely to make the right decision. Whatever decision you make, always put your finances and lifestyle at the top of the list of priorities.