Sell, Remodel or Add On?
Should you make changes to your present home, or sell it and buy another one? Below are some of the factors to weigh into that decision.
Are you happy with the present location of your home? If it’s the location you want to change an addition or remodel obviously won’t help you.
Next what do you want, or need, and what would you like to have? Do you need to remodel what is there, re-arrange some space or actually add on more space? Collect pictures of what you like, Visit model homes, open houses, and compile as many ideas as possible.
BUYING & SELLING COSTS
By adding together: a., selling closing costs of the home you would be selling b., the improvement costs to get that home ready for sale c., the buying closing costs of the home you would be purchasing and d., the cost of the actual move, you can figure a minimum of 10% of the value of your present home will be saved by staying in the same location. If you currently live in a home that’s valued around $450,000.00, and you were planning to move into a home around $550,000.00, you already have added $45,000.00 to the funds available for any project you may undertake. This is important, since unfortunately buying a more expensive home doesn’t always mean you will find a home that actually has all of the particular amenities that you want or ones that suit your needs.
PLAN, PLAN, and PLAN!
You can do some preliminary brainstorming with your realtor to make sure of a couple things before getting too far into the project. 1. Are the types of things you want to add going to create added value and are these improvements currently in demand by Buyers in general? 2. If I put $100,000.00 into this home in this neighborhood will I be within the general pricing parameters or will I be over improving it, and find it difficult to get my money back if I need to sell it. (Even if you think you will never move it is always prudent to plan. If the unexpected happens you won’t have over personalized your improvement so much that it has become a detriment.) Once you have some priorities established, get an architect or designer involved. They do this for a living and often see things you can’t or didn’t. Ask your realtor for recommendations – they work with housing day in and out and see the end results on many levels (quality, practical solutions, realistic improvements & salability the finished product) of many people’s work.
Take into consideration the present configuration of your home. If the living space is small, don’t just add rooms onto it, consider opening it up, adding to it. If those options don’t work then it may be time to move on.
Most families have 2 working partners and when they are at home want open spaces, great rooms and kitchens that open to living areas. Beyond updated heating, windows and roofing buyers are drawn to updated kitchens, baths, space for a home office, added skylights, easy access to outdoors, outdoor privacy and easy care landscaping. The quickness and price obtained in the sale demonstrate the buyer demand in today’s housing market.
Some mistakes to avoid are: tacking small spaces onto already divided, dark or small spaces. Adding spaces in a way that doesn’t create a natural flow and/or creates awkward floor plans are things that turn off prospective buyers and aren’t all that great to live with. Adding very expensive fixtures and improvements to a moderate neighborhood
AND THEN THE LAST CAVEAT
Make sure you’re up to the process. I worked with more than one young couple who bought a home that was in a great neighborhood with lots of potential for improvements or upgrades as they needed and could afford them. But as their children grew and family commitments grew, they found that their energy went in different directions. For them the choice to move made more sense.