Once you’ve lived in your home for a while and find yourself fond of it, you may also discover that it doesn’t fit all your needs and desires. This leaves you wondering whether you should sell or remodel your home. To answer this question there are many things you must consider, but ultimately you must determine whether remodeling will bring a good ROI (return on investment) and if you can afford to buy a new home.
How Fond are you of Your Home?
Your emotions will play a large role here. If you are really attached to your location and neighborhood, remodeling may be the answer. This is a decision that about 70% of homeowners reach, going on to tap into home equity to help them pay to remodel their home so they can comfortably continue living therein.
Are you Good at Budgeting?
When you’re in the midst of considering a home remodel, whether you’re good at budgeting will play an important role. Once you decide to remodel your home you must work with your contractor to decide what changes you’ll make then stay committed to those without making changes midstream. Failure to do so will really blow up your budget.
Do you Need More Room or More Rooms?
You shouldn’t base your decision to sell your home solely on the fact that you need more space. Sometimes moving will only change your home’s layout without adding any additional square footage. However, this really won’t benefit you and it’s something you can do without moving. By simply talking to a designer who will help you reconfigure your home can oftentimes help you solve your problems without disrupting your life. Of course, if you can’t find a way to live comfortably in your home, it may be time to move.
How Long Will a Renovation Take?
Don’t overlook the time and energy you must put into a home remodel. This really is a long-term commitment you’re entering into. For instance, remodeling your kitchen (e.g. replacing countertops, cabinets, appliances, and flooring) can take three to six months. If you also need to do ductwork, plumbing, or wiring, it could take longer. Bathroom remodels will take two or three months and adding a room onto your home can take up to two months. Patience is vital throughout this time as your life will be interrupted.
Will This be a Good ROI?
Determining your ROI for remodeling and moving is important. Unfortunately, you’ll find that most home upgrades don’t result in higher sales prices. In fact, you may only recover 50% – 90% of your costs. On the other hand, when considering moving you’ll want to make sure that you’ll live in your new home long enough to recoup the costs of taking out a mortgage and moving – things that typically require about 7 years.
Are you “Over Improving?”
You don’t want your home to be of a much higher quality than the other homes in your neighborhood because it won’t sell for enough to help you recoup your costs. For instance, a large addition or extensive renovations on a home that’s located in a neighborhood with small or starter homes won’t bring you your expected ROI. In fact, your home may go unsold even when you drastically decrease its price.
Answering these questions honestly is important. Sometimes it requires a second set of eyes. When that’s true and you’re in search of someone you can trust, reach out to Hybrid Construction LLC. They’ve helped many customers make this decision over the years and those who were ready to remodel their home have also found great help from them throughout this process too.
Picture Credit: jarmoluk