Your Home to Sell or Renovate?
Firstly, what needs are you and your family likely to have over the next few years?
For some homeowners, the community or lifestyle they enjoy in their current home is a great reason to stay put. You can't buy a sense of community - it's something you develop over the years. If all of the facilities that your family requires are in the area in which you currently reside, perhaps the answer is to remodel, so that your home suits your family's changing needs. What do you need to do to your home to fit all those needs?
There are 5 important factors to be considered:
1. How much needs to be done?
Consider each room - where are you finding things too squeezy? If it's only one room that needs extending, remodeling may be your answer. However, if every room in the house needs a makeover then remodeling work may be too costly to consider.
2. What is your budget?
How much can you afford to spend? Can you finance any work from household income or savings, or will you need to refinance? The additional costs and/or repayments of refinancing may be more expensive than selling and purchasing a home that combines all that you need.
3. Overcapitalisation
Overcapitalising on your home is a common trap that you must avoid at all costs. Basically, overcapitalising means: spending more money on home improvements than can be recovered if the home was sold. For example, a swimming pool or additional room may cost more than what a buyer is prepared to pay for those features.
Some people think that by remodeling their house, they will receive more for it when they sell, or sell it faster. In reality, most people find that they actually lose money! If you decide to sell, you are better off to present your home in a clean, well-kept state than by spending money on remodeling. Ask yourself this question: are you remodeling to please buyers, or to make your home more attractive and more suited to your own needs? Buyers may not see the added value in the same way that you do!
If the main reason for the remodeling is related to modernisation of an older home, then again the option of selling and buying a more modern home may be better for you.
Compare your home with others in the area. Will the work you do make your home stand out from the rest? Will it make a difference when the time comes to sell up?
4. Keeping the Costs Down
When weighing up the costs and finalising the budgeting for any remodeling, consider whether you have the capability to do some of the work yourself. If so, you may have a better situation for remodeling
If not, it is important to factor in a higher figure than budgeted, to allow for delays, variations and other unknown expenses that increase the costs of a lot of building work.
Always get three quotes from registered trades people - and make sure the quotes are written and comparing like for like. Obtain testimonials from satisfied customers of these trades people so that you know you are choosing well.
5. Local Laws and Regulations
Don't forget to check local building and zoning laws for limitations, restrictions and requirements, if you intend to extend the house. If your house already takes up a large portion of the lot, local zoning may limit how much more house you can build. Even erecting a small garden shed can require Council permits, so check first and save both time and money. Who wants to pull something down, because it's too close to the neighbours or not according to plans?
As you consider improvements to your home, keep in mind that landscaping and exterior appearance will attract buyers to your home. Once they get inside, they'll be looking for functionality, durability, ambience and convenience.
Before taking on remodeling projects or major additions to your home, give us a call to see if we can help you find an existing home that meets your needs.
This Report is aimed at helping you make wise choices regarding whether to sell or remodel. If you decide that selling is your best option, please give me a call so that I can continue to help you get the results you want.
