Should I remodel the house or is it time to move? This is an age-old question that most homeowners will ask them at some point in their life. When you find yourself at this point, it’s important not to make any quick decisions. Spend some time thinking about your reasons why you would want to remodel or move to a house new. To help you start, I put together a quick resource of five things to consider before making your decision.
Want vs. Need
Does your kitchen suddenly seem to small and you want more space? Maybe the bathroom is extremely dated and in need of a make-over. If this sounds like you, then you may start to consider getting quotes from local contractors to see what it would cost to make these upgrades.
Is your family growing or have all the kids moved out? Does your house need more than just cosmetic changes? If you fall into this category, it may be better to look into making a move.
Cost Difference Between Remodeling and Moving
For many homeowners, the biggest question to consider when deciding between remodeling or moving is going to be the cost. When you’re making major changes to your home, that money has to come from somewhere; whether you saved up the cash over time, you’re planning to take out a loan from the bank or refinance your house.
Once you know where the money is coming from, before you start ripping down walls or picking out new countertops, you need to consider if you do plan to move in the near future. Think five years or less. When you’re making significant changes to the home, you want to make sure you’re giving yourself enough time to enjoy those changes and for the real estate market to make adjustments. The last thing you would want to do is over-renovate your home and not see a return on the updates you made.
Local Real Estate Market
The next item to consider is what the local real estate market is currently seeing. A real estate market is considered healthy if it has between four to six months’ worth of inventory available. If the inventory is less than four months, it would be viewed as a sellers’ market, and more than six months is considered a buyers’ market. Talk with a local real estate agent to get a full understanding of what you could expect if you were to sell your home.
Time and Convenience
Selling a house is one of the most stressful times in a person’s life. Depending on what your family’s situation may be, finding a new home that suits your personal needs could take time to find. You also have to be patient while finding a buyer for the house and work around showings while also keeping the house clean and tidy.
On the flip side, renovations take time and come with a lot of inconveniences. The average home remodel cost around $46,500. In addition to finding the funds to cover the remodel, you also have to get creative during the construction process. If you’re putting in a new kitchen, you could be going weeks without the ability to cook. Renovating the master bathroom? Is there enough space in the other bathroom(s) to accommodate the family while getting ready for work and school in the mornings.
Remodel or Move?
There is no right way to answer this question; it all comes down to what is best for your situation at the time. The truth is, no one really enjoys moving, and no one enjoys facing the inconvenience of home construction. That’s why it’s important to talk with a local real estate agent to get a full overview of what the market is doing in the area and find out what improvements to the house will net you a return on your investment.