Should you remodel or sell your house?
We all can agree that moving can be a stressful life event-but is living in a construction zone any easier? If your current living situation is not working for you and you have two options renovate or move. There are a lot of things to consider when making this decision.
There are questions you consider like- “Am I in the right location? Can this home make my life easier? Is there enough space for all of our family to grow?
Cost: Is it more affordable to renovate or move?
Make a list of “wish list” in your home that you would like to renovate and then get bids from different local general contractors. You want to go into renovations for your home organized and with a plan. “It’s like going grocery shopping when you’re hungry — it’s a bad idea, you don’t want to just jump in and start renovating your house because you know that there’s a need” Jonathan, Property Brothers. When renovating it so important to set a budget, acquire the proper finances- such as refinances your home or cash. Putting your home renovations can put you into a lot of bad debt that can put you in a tough spot. Hidden cost and delays also come with home renovations; you want to make sure you are allocating at least 10% of the renovation budget for contingencies. Renovations usually come with immediate out-of-pocket-expenses, where moving can put money in your pocket without renovating and finding a home closer to your “wish list.”
Are you in the right location?
There are some things you can not change about your home, such as the location. It may be that you would like to send your child to a specific school district- or you want 4 bedrooms instead of 2, or you would like ranch style instead of spilt level home, at that point it might be worth it to pick up and move.
Another good idea is to have a real estate agent do an assessment of what the value would be after a renovation and then compare that to what it would be for a house that’s big enough for what you need in a different neighborhood that has more space.
Pros of relocating: Gaining a new perspective- if you feel stuck or complacent in your current home, a change of perspective could be what you need to improve your mental health and wellbeing.
Purchase a new investment
Selling your current home and purchasing a new one can be a great opportunity to add to your portfolio! If your home is now worth more than what you owe, it may be a good time to sell. You’ll want to have enough equity to pay off your mortgage, cover your closing costs, pay moving expenses, and put down a new down payment.
Before you decide to move or remodel, sit down right down the pros and cons and dig into the finance aspect to make sure its finically make sense.
For more insight or to get a free assessment of the value of your home in Michigan, Call the experts Rivard, Aul and Associates Real Estate Team.