This extreme sellers’ market is forcing a lot of homeowners to ask themselves – Should we keep bidding? Or remodel the space we have?
If there’s one truth about owning a home, it’s this: there’s always something you want to change. So, if you’re wondering whether you should remodel your home or move to a new one, here are some things to keep in mind!
1. How do the numbers work out?
Remodeling isn’t cheap. But neither is selling a home and finding a new one! Before you make any plans, figure out the numbers. To remodel, you need a large chunk of liquid cash: an addition can cost up to $70,000, and kitchen upgrades can range from $20,000-$100,000. That’s a major chunk of change, so make sure that your finances are ready. If you don’t have the liquid savings needed for a remodel, you can take advantage of the equity you have in your home with options like a cash out refinance, or home improvement loan. Make sure to consider the current real estate market conditions. We’re in a seller’s market right now, which means that buyers are willing to pay top dollar to get into a house. This is a great time to reach out to your agent and review current market values in your area.
2. Are you emotionally and mentally prepared for an invasive remodel?
Remodeling requires you to totally change the way you live in your home. You have to restrict access to certain areas, live with the noise and dust, and deal with the problems that are oh-so-common with remodels. Long story short: remodels are hard, both emotionally, mentally, and financially. They also usually take longer than originally planned, so you have to be prepared for a one-month remodel to stretch into three (or more!). This temporary inconvenience has a great upside – but it is something you will want to over prepare for!
3. Do you really love your house?
If you are really in love with your home—it has the character you love and is in the perfect location—then consider remodeling. But before you make your final decision, look around your neighborhood; you might be surprised at what you’ll find on the market.
If you can say yes to all of these; the numbers make sense, you are prepared, and your location is ideal – then remodeling may be the choice for you! But if you’re iffy on any of them, talk with a real estate agent to find out if moving might be the right choice for you!
Your agent should be a resource for you before, during and after your transactions – they should gladly offer resources to help you make this decision!
If you’d like to connect with an agent or need recommendations for contractors or financing – please email us at [email protected]