If you’re a homeowner and you’re not happy about your current living situation, you have two options: to renovate or move. There’s a lot of factors to consider when making this decision.
Should I Renovate or Sell
Whenever we are unhappy with certain aspects of our home, we find ourselves wondering whether we should buy a new or upgrade the existing one. Both moving and renovating can be stressful, costly, and time-consuming. Before you weigh the pros and cons,
you should consider these four questions.
What is cheaper?
For many people, cost is a major factor. Which one of the two will cost you more depends on your current mortgage situation, as well as how much money you have saved up. Renovations come with immediate, out-of-pocket expenses, whereas moving can put money in your pocket now but it will cost you a lot more down the line.
The emotional side of things
You could be more attached to your home than you realize so make sure you consider the emotional implications as letting go of memories can be hard and painful.
Is the timing right?
Moving may mean changing school districts, commute routes, and mortgage costs. On the other hand, if you need cash to pay for your child’s college, it’s better to sell than invest in a costly renovation.
Is it a good time to sell?
Will you be getting the most out of your investment? Market conditions will greatly influence the resale price of your property and there are seasonal trends to consider.
Pros and Cons of Renovating and Moving
There are pros and cons to both options.
Relocating is a great opportunity to upgrade your equity portfolio. If the current option is no longer affordable, downsizing can resolve your problems and alleviate your financial strains. It is above all a change in perspective and an opportunity to improve your wellbeing, once the moving stress subsides. If anything, you will avoid the stress of long renovations.
On the other hand, there will be moving costs involved, a lot of packing and unpacking and you need to search for your new home. Sometimes, this can take a while so you will have to either compromise or just spend more time looking for the perfect home that is in a desired location and that fits within your budget.
Renovating is a great way to personalize the space to suit your needs. The right kind of upgrade will increase the resale value of your home if you do decide to sell someday.
On the other hand, you risk losing money on your investment if prospective buyers don’t find your upgrade valuable. Renovations almost always come with delays and hidden costs. Last but not least, as you’ll be staying around you need to prepare to live in a construction zone.
How to increase your home’s value
If you are going to spend money on a property, you should make sure the curb appeal is strong. A flat house can be enriched with a front porch that conveys a sense of welcome. If all your remodeling is on the inside but the outside of the house is challenging, you’ll never have a chance to even show the inside.
Basic maintenance such as replacing siding, windows, doors and roofs, are frequently more important than an awesome kitchen. Maintenance can chew up a lot of cash quickly, and people are afraid of that. Besides, new kitchens and baths lose some of their glamour if there’s water in the basement.
Making your home more energy efficient is always a good choice both if you are staying or selling your home. These upgrades pay for themselves as efficient upgrades lower your home’s household bills such as your ConEd utility bill and buyers are well aware of this feature which is why they are willing to pay a premium for it.
In the show “Love it or List it”, the majority of these homeowners end up realizing it’s more affordable and desirable to make their own home more lovable than it is to purchase a new one that fits their needs. But everyone’s different and you should do whatever makes your life better. Before you decide, you should sit down with your household members to consider all the factors and make it easier for everyone involved.