If your home is no longer working for you, is it time to look for a new one or make renovations to your current place? If you are one of the homeowners who bought when the interest rates were at their lowest and are unsure of whether to move, here are a few things to consider –
- Outdated – If your home is just ‘tired’ and you are looking to upgrade and modernize, this can be simple and certainly worth investigating but be cautious of how much you do.
- Location – If your neighborhood, yard or surrounding homes are no longer working for you, no amount of improvements to your home will fix the setting, and moving is the pretty clear answer!
- Floorplan – If the size or layout is the issue you should call a professional contractor to discuss options and consult with a realtor to ensure that you know the potential value of your home both before and after the proposed renovations. Any true professional will put strong and honest advice ahead of any commission they may lose should you choose to improve rather than sell.
- Timing – Selling and purchasing a new home can usually take around 45 to 60 days from the date of putting your home on the market. Depending on the size of the project, remodeling can take much longer and requires more patience and flexibility.
- Costs – While home prices have certainly increased, building costs have increased even more. Most homes today could not be built new for anything close to what they would sell for, and large renovations have similarly become much more expensive than in the past.
Remodeling an outdated kitchen or updating old, tired bathrooms can give your home a major facelift and will certainly add value. These costs might not be recovered immediately should you sell in the short term, but if you plan to stay for some years there is a lot of value in the enjoyment you will get out of the improvements.
Be aware that major additions can cause a home to outgrow the market in which it is located. If all of the surrounding houses are 1400 square foot ranchers, or older homes in need or updating, substantially improving your home might make it difficult to appraise when it’s time to sell. Keeping a home current is always beneficial to maintaining its value, but over improving is never wise, and while return on investment is important, as your family home, it is just as essential to enjoy a great lifestyle and quality of life.
If you love your location and you can’t bear to leave your neighbors, renovation might be for you. If you have outgrown your home or the area in which you live, then putting your house on the market may be the next step.
