How to Decide Between Moving or Remodeling
Move or remodel? If you are dissatisfied with your home, you might wonder whether it’s better to buy another house or remodel the one you own. The choice involves both financial and emotional calculations.
Deciding whether to move or to remodel is a life conversation, not just a money conversation. You should always start with life first, because thinking about money first can get in the way of figuring out what you really want.
A good place to start the decision-making process is by evaluating your motivations for change.
Generally, people are becoming more aware that they need to ‘move with a purpose’, relocating for a job, your commute is too long, better school district, etc. But, f you feel you’ve hit the maximum capacity of your space, you may want to consider investing in your existing home.
Once you’ve evaluated your desire, such as for more space, think hard about the emotional aspect of moving.
If you love your neighborhood, your neighbors, your backyard, your commute and your children’s school, then you need to realize that these are things that are hard to replace,” says Dan Fritschen, creator of RemodelOrMove.com and author of “Remodel or Move? Make the Right Decision.” “You need to think about how your home functions during the entire year, including your ability to entertain.”
Financial implications of moving
Before deciding to move, consult a real estate agent and a lender to get an evaluation of your home’s market value, the cost of the type of home you want to buy and your financing options. Patrick Parker Realty Agents are experts in the areas we serve and are happy to provide you with a complimentary comparative market analysis at your convenience.
It is a buyer’s market. Your new mortgage payments could be lower because of today’s low mortgage rates and low home prices, which could offset a lower-than-expected price on your home. You also need to know the difference in property taxes and calculate the potential money you may need to spend to get the next house fixed to your preferences. A good Realtor should be willing to help you with all of this, soup to nuts.
Financial Implications of Remodeling
Funding a remodel through cash flow or savings is an option, but you can also consider a home equity loan if you have a repayment plan.
You need to get a feel for what your project will cost before you can decide if it’s worth it. Then you can estimate potential appreciation in your home value from the project. It’s also important to think about the intangible value of the improvement in terms of your quality of life.
One important thing to note, adding square footage can be the best remodeling investment, followed by fixing up a kitchen or bathroom. Take caution about over-improving the home for the neighborhood.
If you are living in a community of $350,000 homes and you upgrade with a $150,000 kitchen, you may not get your money back when you sell. On the other hand, if you love cooking and you can afford it, the renovation has emotional value.
A Realtor with heavy experience in the local community can make recommendations as it relates to comparable home values as you consider remodeling and its relationship to the long-term investment in your home. You can Contact Us for help in this area, we’ll be more than happy to guide you in the right direction.