Remodel Or Sell? What Should You Do? – An Owners Guide –
No one likes every single thing about their home. But you liked enough where you bought it anyway. Many buyers found the fatal flaw months after you closed escrow.
This guide will help you decide if you are better off remodeling or selling. There are some things you cannot fix by remodeling. For example, too road noise has increased from a road expansion. Or a commute has become unmanageable after relatives or work moved.
But sometimes it makes sense to fix what you don’t like about your home by renovating. Review our guide below before you start making irreversible changes.
Stay | Go
First, list all your options in 2 columns,
Stay – Involves making changes to the things you don’t like about the property. Consider the time and cost of upgrading.
Go – List the places you would want to move. Consider the market where your home is now and how it compares to homes where you want to move. Consider how your home compares to similar homes within a half mile. Consider the increased taxes you will pay if moving to a larger and more expensive home. Or consider the savings when buying a smaller less expensive home in another area, even out of state.
Renting is also an option but should only be used if you don’t need the proceeds from a potential sale for your next purchase. And you can handle the extra expenses and repairs that are part of being a landlord. If you do rent I highly recommend the services provided by an experienced property manager.
If the cost of moving saves you money and you will be in a better location then you should sell. But if the cost of moving is greater you have to perform a cost-benefit analysis. Below is a list of questions to consider to help you compare actions and improve your quality of life.
Important consideration questions
How much will it cost to make the change?
How much will it cost to sell, buy and relocate?
What will you gain by moving to another location?
What will you lose by moving to another location?
How does your home compare to other homes that have sold in the neighborhood?
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How long would it take to remodel?
How much longer would you stay if you remodeled?
How long would you stay if you moved into a new home?
Is your family growing or shrinking?
How much space do you need for entertaining?
How do you like your neighborhood and neighbors?
Is your current property set up for expansion? Consider HOA restrictions, feasibility, and cost.
How many remodeling projects do you have, what is the time, what is the cost?
How do you deal with projects that take longer than expected?
Can you deal with not having use of your kitchen for a month or a bathroom for a week?
Do you have the money needed to pay for a remodel or would you need a loan?
Could you buy without selling your current home?
How good are the schools in the area where your home is and where you are considering a move?