When your home no longer meets your needs, it’s time to take a good look at your property and decide if you want to sell up and buy somewhere new or take on the project of remodeling it. Here are some questions to ask yourself to help you make this important decision.
- What’s the real estate market like in your area? If every home on the block seems like it’s on sale, then chances are that it’s going to be tough going to find a buyer at a reasonable sales price. If the area is in high demand, however (maybe it’s close to a great school or transport links), then you have a much better chance of getting a great offer.
- Where would you buy and what type of property do you need? Take a look at the area you would likely look into if you did decide to sell and get a good idea of the types of properties you would like to buy to solve your current home’s issues. This is a good way of getting a general idea of how much you’d need to sell your home for and if it would be possible to get the price you need to move into the type of home you want. Unless you have additional funds that you can put towards a more expensive property, it’s often more budget-friendly to remodel.
- Are the issues something that can be fixed? Problems with properties come in two different flavors – ones that can be changed or repaired, and ones that can’t. If it’s the neighborhood you don’t like or that your home backs onto a busy road, there’s not a whole lot you can do to fix these issues. If it’s a case of building on another bedroom or bathroom, then you have a lot more control.
- How major are the issues with your current home? Major structural issues can be very expensive to fix, like repairing a cracked foundation or replacing the roof. However, these will have to be disclosed to potential buyers and may affect your sales price. Simpler issues like not having enough bedrooms or living space can be more rewarding as a remodeling project – they increase the value of your home and get you the space you need without the expensive cost of moving.
- How long have you been in your current home? Property experts recommend that you stay in a property at least 5 years before selling, as this is about the amount of time it takes to recoup moving costs and real estate agent fees, and your home should likely have increased a little in value as well during this time. If it’s less than 5 years or your market is very flat, remodeling may be the better route – you’ll avoid the selling and moving fees and add value to your home.
- Have you developed a budget? The math is really what counts when it comes to making this decision – and moving home is almost always more expensive, unless you are scaling down after many years of living at your property. Take the time to explore your different options. Speak to real estate specialists in your area to get an accurate valuation of your home, then talk to reputable local contractors about what it would take to make your home more suitable to your current needs. This will help guide you in making this decision, as they both have their own pros and cons. The solution may be as simple as knocking down a few internal walls or finishing your basement, or it may help you see that the only way to get what you want is to commit to a move.
- Will you earn back the expenses? Remodeling costs money and definitely isn’t a whole lot of fun to live through, but the results can be impressive. What’s more important is if you are truly adding value to your home and getting the space you need to make it work for you and your family. While some projects have good returns – kitchens, bathrooms, decks and so on – others won’t add a lot of resale value. In any case, it’s best to remodel only if you can see yourself living in your home for the next 5 years or more, as this is the best way to value your remodel. Moving to a new home also carries expenses that take around 5 years to earn back, including the costs of selling your current home – but there are additional factors to consider. For example, are you moving to a neighborhood that offers good resale value where your investment is likely to grow, or are you moving to a property that you like but that has little to offer the market? By calculating the returns on the different investments, you can see what is more likely to work out better for you financially in the longer term.
Need a Market-related Valuation for Your Home? Our Cash for Houses Property Team Can Help!
The Shiny Key Properties team is a leading property agency in the Dallas and Fort Worth Area. If you’re interested in selling your home quickly or just want an honest evaluation to help you decide whether to sell your home or to remodel, contact us today for a no obligation cash offer for your property.