Over time, many homeowners face this dilemma. Can you remodel and or expand your home and end up with improved value or will remodeling result in a home worth less than you put into it? Is moving a better plan for your situation? If remodeling, should you focus on the kitchen? Is a sun room a good idea? Is it better to increase your footprint on your property or build up … adding another level? What are the city expansion allotments for my lot?
Every situation is different. Finding the answers to these questions is time-consuming and sometimes impossible if you don’t have the resources and contacts needed. These tips will help you to make a smart decision.
Determine your property value and how it compares to others in your neighborhood
Talk with someone who has an investor and/or development background, who is skilled in determining a property’s value. You’ll want to obtain a current value of your home and once you have remodeling ideas and specifications (next tip), you’ll also want to determine the value of the home post-expansion and or remodel for additional comparison.
Gather remodeling ideas and estimates
Find trusted and reputable architects and/or contractors to help you determine the best renovation options and provide you with costs estimates. They can help you discern local building code limitations as many communities have limits on the size of your home in relation to its plot of land. An expert will also know about unseen issues that may be overlooked by non-professionals, such as the need for new wiring or plumbing.
Beyond the actual renovation costs, you also need to factor in the costs of paying for the remodeling, such as a second mortgage or equity line. Look for trusted lenders with refinancing and renovation loan products. In addition, big remodeling projects may entail moving out of your home – so temporary renting expenses (as well as increased eating out) may need to be included in the overall cost.
Determine moving expenses
Put together a worksheet with your expected move and purchase expenses. Create a list of pros and cons to include tangible (finance options, income tax advantages, transaction costs such as realtor fees and loan closing costs) and non-tangible options (fresh start, family focus).
Do the math – compare options
Speak to a lender to find out how much you qualify for if you were to buy a new or existing home AND the lending options for remodeling. Loan options and terms are not the same depending on the situation and other factors, including your credit score. Review all of the findings of remodeling, moving, and the cost of new construction (for comparison) with someone who is knowledgeable and trustworthy.
Math isn’t the only factor to consider
For some, a home can have sentimental value – or you may want to stay in your home “forever,” therefore the answer to the question of remodeling or moving isn’t solely based on the financial picture. In some situations – you may not have a good chance of recouping your investment yet staying in the home is more important. When your remodeling project is simply investing in your quality of life, it is still important to make smart remodeling decisions to ensure the future needs of your family are considered and included.
Find a trusted advisor and partner
In the past, locating a single resource for all your assessment needs was almost impossible, as it requires the person to wear many hats. Until now!
Carter and Associates has a team of professionals to help you make a smart decision about remodeling or moving – and this service is offered to you at no-cost and no-obligation. Why? Because we care about our communities and the people who live in them!
We typically start with doing an assessment of your home and your future needs, which usually takes about 30 minutes. After that, we provide you with options regarding how much your home can be physically altered with estimated costs – based on the questions and answers during the assessment.
Let us make it easy for you to get the answers you need! We are experienced Realtors®, and I have personally been restoring properties for 11 years, so we know the questions to ask, the expert resources to contact, and have valued relationships in place.
Give me a call to review any questions you may have – and read our testimonials to hear what others say about working with me and our award-winning Harry Norman Realtors® team. We look forward to serving you!