Should you stay or go? How do you decide whether to invest the money to renovate your home, or throw in the towel and find a new home? The first step would be to get your house appraised, so you know how it compares to the rest of the houses on your street or neighborhood. If you invest too much money on a renovation project, it might be money you won’t get back because you’ve priced your home out of the neighborhood.
For example, just because you spent $20,000 on a kitchen remodel, doesn’t mean you’ll get that money back when you sell the house. If you plan to stay in your newly renovated house for many years after the renovation, spending the extra money won’t matter. Overcapitalizing your home is only an issue if you plan on selling it in a certain amount of time. Because of the fluctuating real estate market, your renovation will likely pay off if you wait it out.
We all know how to buy a new house, but the following are steps to take to decide if you fit the criteria of renovating instead of moving. After an inspection to ensure your house can withstand a renovation, you must obtain the appropriate permits for the renovation. Your finances are another aspect to consider when deciding whether to renovate or move, since you might need to get approved for a loan or set aside a budget that your family can afford.
If the inspection reveals the condition of your home is in poor shape, your renovation project might cost a lot more than you had originally bargained for. When considering a renovation, look beyond the cosmetic upgrades and prepare for the structure of your home might needing some upgrades as well.
Do your research in your area and see if the renovations you plan on doing will match the demand of the neighborhood. On the other hand, do your research to see how your home stacks up against other houses in your budget. Deciding whether to renovate or relocate often comes down to the location of your house, since you can always change a home but never change its location.
If you do decide to renovate, our knowledgeable and talented team of construction professionals can provide you with all the services you need to complete your project. Schedule a 10-minute phone consultation and ask our professionals advice on your renovation project so that you’re fully informed about what you’re getting into.