Should I Sell or Renovate My Home?
If your home is no longer meeting your needs, you may be considering selling or renovating. Both of these options are big decisions with time commitments and costs, and you’ll want to go into either well-informed and knowing what you want. Here are three key factors to consider when deciding whether selling or renovating is best for you.
What don’t you like about your current home?
The first step in this process is pinpointing the primary reasons you are considering a change. For some, the issues they have with their home is not with the house itself, but with its surroundings or community. If your yard is too small or you live on a busy road, moving is the only option to solve those problems. If you dislike a few particular aspects of your home, but overall enjoy where you live, renovation could be a better choice. Consider what you like and dislike about your current community and home. Then prioritize this list and decide which factors are most important to you. This will be important when evaluating costs.
Compare up front and long term costs
There’s a lot to consider when it comes to cost: comparing your current and potential future mortgage, tax rates, utilities, a down payment, and up front renovating costs. It’s helpful to calculate how much selling versus renovating will cost up front, but also in the long run. Maybe renovating will be costly at first, but ultimately save you money compared to an increased mortgage and taxes. Or perhaps renovating would pose such a huge cost (like if you’re trying to add significant square footage) that it just doesn’t make sense.
Most homeowners don’t see a total return on investment for renovations, so you’ll want to make sure that you’re planning on staying in the renovated home long enough after upgrades are completed to recoup as much of the costs as possible. You’ll also want to consider future resale value. In every neighborhood, there’s a cap for how much a house will sell for, so significant renovations could make it harder to sell your home down the line. Assessing costs and future resale value if you choose to renovate should make it much clearer which option makes the most financial sense.
Are you prepared to take on renovations?
While moving is definitely stressful, you’ve probably done it before and generally know what it entails. Renovations will likely be a brand new undertaking that requires a lot of planning, budgeting, and work, especially if you’re considering doing some smaller projects yourself. Some of your home may be unlivable for parts of the renovations. Unexpected expenses could come up. You’ll have to manage contractors and know exactly what you want to stay on budget – you don’t want to change your mind halfway through renovations. But afterwards, your home will be customized just to your liking.
Ultimately, deciding to sell or renovate is a very personal decision. There are financial, personal, and emotional implications that can have a big impact on what you choose, but it’s important to consider all the factors nonetheless. If you need assistance determining your property’s current market value, or potential value after renovations, contact one of our REALTORS® today.