Whether you are single, part of a couple or have a family, there might come a time when your home no longer meets your needs. You might have a couple of options, including renovating your home to add the features or space that you desire or place it for sale and look for a different home that works better for you. Before you decide to pursue either path, there are several factors to consider. Critically thinking about your decision can help you to make the right choice for you.
What you think about your neighborhood
Your first consideration should be the location of your home and your neighborhood. If you love your neighborhood and have an emotional connection to your home, it might make sense for you to think about renovating your home instead of calling it quits and moving on.
Renovating your home in a neighborhood and area that you love might be preferable to moving to a more desirable home in a less-prime location.
If you have children, you will want to consider whether they will have to change schools if you sell your home. Your ability to retire in your home with renovations is also important. If you are growing older, ask yourself whether you can make modifications that can allow you to age in place or if you might be better off purchasing a new home that will fit your needs better.
The length of time that you have lived in your home
Think about how long you have lived in your home. When you purchase a house, it takes around three to five years before you will break even. This consideration includes your moving expenses, realtor commissions and other expenses that are associated with buying a home. If you haven't lived in your home for very long, it might be wise to wait before you list it.
Your ability to create a realistic budget plan for renovations to home
The ability to create a realistic budget plan for renovations to your home is crucial. You need to figure out exactly what improvements you want for your dream house and determine the total costs. Accurate budgeting of the cost of remodel jobs is vital if you think that you might want to renovate your home instead of listing it. This includes determining the materials that you want to use in advance and getting multiple quotes and consultations with designers and contractors about what you would like to accomplish. Some homeowners do not really know what they want.
If you change your mind and decide to go with different materials or designs in the middle of the renovation project, the cost of remodel may be substantially higher than you had planned. Consultations with designers and contractors to weigh the costs can help you to determine whether to proceed with a renovation or put your home up for sale.
Whether the improvements will truly turn your house into your dream home
Another of the factors to consider is whether the improvements that you envision will truly turn your house into your dream home. In some cases, people complete renovations to their existing homes only to grow tired of them in a few years. If you believe that the renovations that you think that you will make will actually make your dreams a reality, renovating may be a good idea. If you think that you will outgrow them, however, you might want to sell your home instead.
The value of your home
The value of your home and what you might get by selling it for is an important consideration. A consultation with realtors in your area can help you to figure out what your home is worth for the real estate market in your community. Think about the equity that you have built in your home and figure out how much you might have to pay to purchase a home that has the space and features that you want. A consultation with realtors can help you to determine whether it is a good idea to list your home or if you should instead renovate it.
Do you need more space?
One of the main reasons that homeowners decide to list their homes is that they need more space. Your family might have outgrown the space that you have. However, you might be able to use your existing space to add more rooms. An architect or designer might be able to suggest a smarter layout so that you can add the additional rooms that you need to accommodate your family. Another option might be to add an addition for more space. Compare the costs of these types of major renovations against your budget and the costs that you might pay to purchase a new home and to move.
Will your renovations be an over-improvement?
It is important for you to think about whether the renovations that you want would over-improve your home. Compare the renovations that you anticipate making with the other homes on your block. Think about whether you might want to sell it in the future. A home that is over-improved in comparison to other homes in its neighborhood will not sell for as much money as similar homes in different neighborhoods.
You should also think about the types of renovations that provide the highest returns on investment. For example, bathroom remodels, kitchen remodels and landscaping might return 80 or above on your investment. Other types of renovations will not allow you to recoup as much of your investment in a future sale.
The reality of renovations
Think about the reality of renovations. When your home is being renovated, you may be unable to use certain areas of your home. For some types of major renovations, you might have to spend some time away from your home for a few months while the work is completed. Think about how long the renovations will take and whether you will be able to handle the inconvenience.
The decision about whether to renovate your existing home or to sell it in search of your dream house is an important one. Think carefully and critically about all of the factors so that you can make the right decision for you and your loved ones.
