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There is a lot to consider when deciding how to move closer to your dream home. You could choose to renovate until your existing home matches your dreams, or you could simply put your home up on the market and seek out that existing dream home. Either option is sure to have its challenges. As with any choice, deciding whether to renovate or relocate comes down to cost, time, and convenience. Below we’ve outlined the important things to consider while making this decision.
Cost Effectiveness
No matter which path you decide to take, you will incur costs that need to be considered when making this decision. For some homeowners, moving will be cheaper, and for others renovation would be more cost effective.
The cost of selling your home is dependent on variables such as agent commissions, the cost of hiring movers or renting moving equipment, performing minor repairs to increase the attractiveness of your home, and, of course, the cost of the new home. Remodeling, on the other hand, accrues permit expenses, architectural plans, and material and labor costs. You also must consider additional expenses and costs from the unexpected.
Think about what you want most in a home and get estimates for work so that you have an idea of where you stand before you choose whether to remodel or sell.
Real Estate Market
Your local real estate market can give valuable insight and can often provide enough information to make a big difference in your choices. If you live in a hot market and are open to living in a different neighborhood you may want to sell rather than renovate.
Speak with an agent to help you research the area and get informed on how much your land and house are worth. Evaluate and assess your home’s marketability and buyer appeal. A home that is in good condition or has recently been updated often sells faster than a fixer upper.
Location and Emotional Attachment
If you like the location and the surrounding area of your current home, a renovation may be the right answer. The roots you made in your neighborhood, and the emotional attachment you may have to your home can make it much harder to move away.
If you have kids, you may not want to leave an area with a good school district or neighborhood friends. If your current home is in a location that is ideal for your life and you don’t run the risk of over-improving your home with a renovation, then renovating may be the way to turn your house into your dream home.
Plan Realistically
Be realistic about what you want and need and weigh each option carefully. Depending on the renovation, it can take anywhere from two months to over a year. There is also the risk that an uncoordinated subcontractor or an unexpected issue can cause additional costs and extend the process.
Moving isn’t a quick process either, consider the time it will take to find a buyer that will give you an offer you feel comfortable accepting, and the time to find your new dream home.
If you remodel, make sure to keep your potential return on investment in mind. It’s important to factor in how much money you’re spending and how that will affect the new value of the home.
This decision is one that will change the way you live your life. If you need help pricing out the updates that you’d like to make to your current home, the Ramos team would be happy to help you out. Contact us for a free consultation.