HGTV and the TV shows about flipping, home demolition, and decorating have made remodeling a hobby (or at least a hobby to sit-back and watch). Clients often mull over the remodel versus move dilemma.
Do we remodel our current home and stay put or move?
Do we buy a fixer upper and remodel or buy a turnkey home?
Many homeowners have the following question: should I remodel or do repairs before listing?
The source of this question is often “Will I get more money if I list my house after it is remodeled?”
Like many things in real estate (and life), there are no hard-and-fast rules. It is hard to say “always” in real estate.
2021 shapes up to be a great year for sellers to list their home and walk away with money after cashing out on their equity. If you stay put, then you do not benefit from the sellers market. However, many home owners are hesitate to list because they are not sure if they can find a replacement home that they like as much as their current home.
5 Things to Consider Before Remodeling Your Home
Here are a 5 things to consider when evaluating whether a remodel makes sense for you:
1. How long are you going to be in the house?
If you do not plan on being in the house for more than a couple of years, ask yourself if the time, energy, and money to remodel is worth it? If you will only be in the home for 6 months after the remodel is finished, then is the effort and cost of a remodel worth it?
2. Are you expecting a return on your investment?
What are your expectations with investment? Do you think that if you pay $50,000 for a kitchen remodel that your home will automatically sell for $50,000? Depending on the contractor and materials you use, you might not see a one-to-one increase in value to your home. Check out the included graphics for what remodeling projects have the least and most return on investment. It might make you consider just getting a new garage door before listing
3. How much money do you have for remodeling?
Remodeling costs money and often more “liquid” money. Cash. Often a remodel drains your savings account and sometimes your patience since remodels can increase in cost once they are started and new things are discovered in a home that needs repair.
4. How valuable is your time & sanity?
Unless you are moving someplace else during the remodel, then remodeling your home means you are spending time out of routine. Air mattresses in the living room and using a microwave for all your cooking can get old quickly!
5. Do you love your location?
Are you in love with your location, the orientation of the home on the lot, and your exact street? If your exact location is extremely important to you, then it might make sense to stay put and remodel instead of move. However, if you aren’t in love with your location and also need upgrades to your home, then making the move might be the best bet.