If there’s anything that will reacquaint you with the four walls of your home, it’s a global pandemic, featuring multiple lockdowns. As a result, many homeowners have begun to feel the pinch of a space that’s just too familiar.
Naturally, the only solution is to make some changes to your space, or move on to a different environment, right? Well, you could just stick it out and rearrange some furniture. But if your home is in need of dire change, should you opt for a full-scale renovation or sell your home?
Here’s how to weigh the two options and make your final decision.
Should You Sell Your Home? Top Factors To Consider
Just because you’ve spent too much time at home over the past 18 months doesn’t mean that moving (especially in the middle of a recession) is a good idea. But if you’re seriously considering it for reasons that aren’t associated with COVID, here’s what to think about:
What’s Your Real Motivation To Move?
In reality, most homeowners aren’t 100 percent satisfied with every element of their home. There’s usually one thing they’d like to change, at the very least. If some of these reasons exist outside of your home’s four walls, this is reason enough to move.
For example, incessant traffic noise, noisy neighbors, or a flooding creek are all things out of your control as a homeowner. Your home might be too far from work and your commute is unbearable. Or, maybe you want to live closer to friends and family.
In many ways, moving to a new home seems justified. Check out The Madrona Group Real Estate Team for assistance with selling or buying a home.
However, if there is a flaw within your home that you could fix with a simple renovation and the right budget, you might want to consider staying put. If you can reason that remodeling will make your home more comfortable and liveable for the foreseeable future, this is when you should choose renovation over selling your home.
Consider Emotional Attachment
Moving from a family home that’s packed with ”firsts” and plenty of cherished memories is a huge life change. It’s important to consider the emotional attachment your family has to your home. It may run deeper than you realize.
In short, there are emotional implications associated with moving house. Discuss the move with your family members first to gauge how they might handle such an upheaval. It’s important to decide whether the emotional stress of moving is worth it or not.
What Does the Real Estate Market Look Like?
This is a factor most homeowners tend to glaze over. Instead, they might become transfixed on the idea of moving, decorating a new space, or owning a bigger house. But in reality, the market may not in your favor to move.
With any home purchase, you want to make sure you’re getting the most out of the investment you make. Sure, it might be cheaper to move than to renovate, but will you be able to sell your home for a good price, that’s worth your while?
Before you jump into making a decision about selling, you want to research the local real estate market. Look for seasonal selling trends and stick to the best times to sell and buy.
Should You Renovate Your Home? Top Factors To Consider
If moving house seems like a bit of an extreme decision, you might want to think about making some renovations. But even this choice comes with its own drawbacks. Here’s what to weigh up:
Customize Without the Stress
Perhaps your home is a place that you already love? Let’s say it’s a solid 8 out of 10. Remodeling is a great way to turn that 8 into 10 with a few adjustments and create a forever home that serves you well.
Essentially, you can customize your home to suit your needs without the stress and hassle of moving. Although keep in mind that major home renovations come with own their fair share of mess!
Boost Your Home Value
It’s no secret that home renovations are a great way to add value to any property. Not only is it a good way to improve your living space according to your needs. But strategically, you can profit from renovations, too.
When it comes time to sell your home, there are certain additions that can really improve its worth and secure you a great selling price, and profit! Yes, renovations come with their own cost. But most of the time, you can recoup this cost with a good home sale.
You Could Lose Money
It’s worth noting that not all home renovation projects are a good thing. There is a risk that you could front the costs of a renovation and not make any money back when it comes time to sell.
So, if you want to renovate based on home improvement for profit, make sure to do your research first. You want to consider the best renovation projects that truly pay off in the long run.
Keep this in mind: small projects will pay themselves off over time, but larger projects have a greater margin for loss.
What Does Your Budget Look Like?
Finally, if there’s one major deciding factor between selling your home or renovating it, it has to be your budget. At a glance, it’s obvious that both selling and renovating come with their own associated costs. Some of which include:
If you plan to sell your house, you need to be aware of all the costs that go with it. Think along the lines of real estate commission fees, transfer taxes, home staging, escrow fees, title insurance, home preparations, and more.
According to Zillow, it costs the average homeowner nothing shy of $20,000 – 23,000 to sell their home.
The cost of renovating depends on the extent of the renovation, of course. But what many homeowners tend to overlook is the financing cost. If you’re opting for a home equity loan or home equity line of credit, you have to account for the interest you’re paying on this loan.
At the end of the day (or loan payment), you always end up paying more than the original amount. You should also include a buffer amount of at least 20 percent of the quoted cost based on all the things that can go awry in renovation projects.
Turn Your Dream Home Into a Reality
When making the decision between renovations or whether to sell your home, it’s always wise to weigh up all the pros and cons, first. Neither of these decisions should be made on a whim, so do your due diligence!
With this in mind, turning your dream home into a reality is not impossible. If you’re in need of inspiration for home and garden improvement, check out the rest of this site for your fix.