Love It or List It - Remodel or Sell?

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Whether you are outgrowing your current home or wish you had that bright and airy sunroom, you may find yourself debating if you want to sell your home or put in some work to remodel. Both decisions have benefits and downfalls so it’s important to make sure you are making the best decision for you and your budget.

Four Questions You Should Consider:

Which option is more cost effective?

Before you make any decisions, set a realistic budget. Then decide which option gets you the most for your money. If you are going to spend $80,000 for a remodel, it might be better to buy a home with the features you want.

Does your home hold sentimental value?

Is it the custom woodworking, your children’s heights marked on the door frame or the quaint neighborhood that keeps you from moving? By making small changes to your current home, you'll keep the things you love and have the new updates.

Look at the market - Is it a good time to sell?

It's important to check the market and current pricing of the homes in your area before you decide to sell. Are houses selling below value? It might be a good idea to wait and make those small changes to your current home. If homes are selling above value, you might not want to wait to list. No matter which you chose, it is always a good idea to make small updates to your home to help increase the value. 

What is a realistic solution for you?

Ask yourself why  you want to move or remodel. While adding a new baby may be a reason to sell, sometimes you can knock down a few walls for extra breathing room.  What's your budget like? Maybe you've been saving up for years, and have a remodeling budget ready to go.  Perhaps it is betterto make a few small changes while you save for that down payment. The best advice we can give is to not jump into the decision too quickly. Weigh all your options to make  the best decision for you.

Remodeling

Americans usually chose to remodel versus buying a new home, spending about $20,000 to $75,000 per project. For many this cost is worth the sentimental value of staying in a home they love and avoiding the stress of moving. However, upgrading your home can increase the value of your home if/when you choose to sell.

On the other side of the coin, remodeling can be a gamble. The changes you make may not always generate the biggest return for the money you spend on the remodeling work. Sometimes less is more – think upgrades, not overhaul. Not to mention the unknowns of hidden costs and delays and the challenges of living  in a construction zone.

 If you choose to remodel, contact your insurance agent to make sure you are covered properly during construction and have ample coverage once the remodel is complete. Updates can increase your home's value and you'll want to make sure you have coverage that fits your needs.

Selling

Sometimes you need a fresh start and don’t want the hassle of remodeling your current home. Trust us, you are not alone! Each year, an average of 5 million homes are sold in the U.S. Buying a move-in-ready home and avoiding the stress of a renovation project can be appealing, but just remember that every situation brings its unique pain points – loans, inspections and selling your home to name a few.

Make sure your new place fits your specifications, or you may find yourself tempted to move or remodel again. If you want that light-filled sunroom and a playroom for the kids, make sure it's on your must-list. And remember to figure in the cost of moving. Whether you do it yourself, recruit some family members (pizza anyone?) or hire a moving company, these can impact your budget.

Whether you choose to remodel or sell, make the best decision for your situation and your budget. Weigh all your options, and when in doubt, it’s okay to wait it out.

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