If you’re watching the current housing market trends, you may be asking yourself if it’s time to sell your home or renovate it and stay put. All homes need some renovations, even if you buy one that claims to be turn-key. It’s not an easy choice to decide to love your home or list it, but there are some things you should consider.
The Decision-Making Factors
If you watch any of the programmings on HGTV about real estate and house flipping, you will know that many things come into the equation on whether to remodel or sell. Additionally, you don’t want to overbuild your home or put money into it that you will never recuperate.
So, all these things create a problem that requires some analytical resolve. According to real estate experts, you should ask yourself four questions before making such a decision. The questions are:
- Is the location good?
If you know anything about real estate, it’s all about location. A 4,000 square foot home in Macon, GA, might fetch around $500k. However, the same type of home in some of LA’s most desirable neighborhoods will go for millions. So, it’s easy to see that location has a lot to do with the equation.
Additionally, you probably like where you live, but is it suitable for your work commute and your children’s schools? When listing a home on the market, the school rating is significant in the distance to major cities. All these things affect the resale value and whether you should stay or go.
- Is there enough space for my family?
Another essential factor to consider is if there’s enough room for your family to live comfortably. Perhaps, you’ve outgrown the home with the addition of children, and you need more space. Another issue could be you’ve recently started working from home and need a dedicated area for an office.
On the flip side, you may want to downsize as the home has become too large for your empty nest. Putting an addition on to your home is a costly process, but it can be done with the right contractor behind you handling permits and such.
- Making Dollars and Cents
If you have a great deal of equity in your home, it might be time to sell and pull out those funds. However, if the house needs major renovations, you won’t get the most out of it. Most buyers want something where they have little work to do, such as paint and flooring.
Additionally, what will it cost to replace a home of this size? Homes in move-in condition are going for top dollar. Does it make sense to jump from one home to another right now?
Is it worth putting $20k into it to make it a hot property on the market? Perhaps, putting some money into it will help it become more livable for your family.
- The Emotional Factors
If you’ve lived in your home for any time, you have memories attached to the property. Do you want to walk away from the place where you raised your children? But, on the other hand, perhaps you have some not-so-pleasant memories, then selling might be the best option for you.
It’s normal to develop an emotional attachment to a home, so you must also consider this before you decide to sell or do home renovations. Can you find one that feels as comfortable and homey as the current house?
What Areas Bring A Good Return On Investment?
If you’re considering home renovations, you can’t go wrong with kitchens and bathrooms. While the laundry room may be small, most potential buyers can live with it. What they won’t live with is a kitchen that needs to be gutted and redone.
Again, you must keep the budget in mind. If you can’t recover those funds, you don’t want to spend $30k on a kitchen remodel with granite countertops and luxury cabinets. The scale of your update will dictate how much your ROI will be.
A simple remodel with appliances, countertops, new hardware, and light fixtures can bring you around 80 percent returned. However, a complete gut job can carry about 62 percent, according to recent studies. If you spend too much, you will never recuperate those funds.
However, if you plan to live in your home another 5-10 years, it will be money well spent for your family to enjoy.
Remodeling 101
If you’ve decided that you’re going to stay and do some renovations, you’ve made a hard choice. Now deciding what to renovate in your home to sell is the next part of the process. However, the memories, space, price, and location have all played a significant role in you making this decision.
You can’t just jump into a remodeling project overnight, as you will need to have a firm plan in place. Here are some things you will need to decide before you remodel:
- What is my budget?
- Do I have a safety net for overages?
- What time frame am I looking to have this done?
- Who will I hire as a contractor, or will I do some work myself?
- Does the remodel make sense for the home and neighborhood financially?
- Is this a wise decision, or am I leading with my emotions?
- Where will we stay when we’re doing renovations?
Once you have answered all these questions and you have a clear plan in place, it’s time to move on to find the right contractor.
Hiring The Professionals
Tackling a remodeling project isn’t easy. Today’s society tends to be into the D-I-Y methods to save money. Sadly, you should note that this often costs more money in the long run. When you try to do something and mess it up, it can cost more to repair it. Therefore, it’s often better to let a licensed contractor handle things from the beginning.
They can take care of getting blueprints, pulling permits, and making sure your remodeling is as headache-free for you as possible. So when looking for the best home renovation ideas and you need a helpful team that is bonded, insured, and knowledgeable for your safety, give us a call!
