When to Renovate?

Knowing When It’s Time to Renovate or to Move
I get asked this frequently from Sellers, and sometimes, it’s hard to determine if you should take the time to renovate your home, or just pack up and move. Both options have their own pros and cons, and it’s hard to determine what the best option is. Below are a few things to consider when making your decision between renovating and moving.
 

• Market conditions can dictate the value of this choice. Is your current market strong and do homes sell quickly? Then perhaps quick fixes will help to get the most value for your property. Or is your market more of a Buyers market where it takes longer to sell? In this case, perhaps an expensive renovation isn't going to get you the money back that you were hoping. Ask your Real Estate Professional where your market is at, and for valuable tools to help you to decide what's best.
• What types of changes or upgrades would you like to make? Make a list of the types of changes you want to see in your home. Make sure to include everything that you would like to renovate. At this point, don’t think about cost, but what it is you would like.
• List the pros and cons of renovating and moving. What will work for you and your life situation? Can your current home be renovated to meet your needs?
• Look at the costs. If you wanted to complete all of the items on your list, how much would that cost? Can you delay some items on your list until you have more money to spend? Sometimes, the cost of the renovation is out of your price range and you can only accomplish one or two tasks at a time.
• Where is the money coming from? Is it a second mortgage? From your home equity, or some other source? Is the extra financial burden to renovate your home worth the effort?
• How much time will it take? Sometimes, living in a home that’s under construction for an extended period of time is not appealing. You have to decide if you are willing to make the sacrifice to have your home as a construction zone for a few months.
• Moving.  If moving is an option, then ask yourself these questions:

• What can you afford?
• What type of down payment do you have?
• Are you able to find something in your price range that requires no fixing?
• How are the housing markets?
• Can you sell your house easily?
• Will you be able to find the type of home that will meet your needs?
• Are you ready to uproot your family for a new location?
• Do you need the extra space?